THE LATEST TRENDS IN LUXURY REAL ESTATE

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• THE LATEST TRENDS IN LUXURY REAL ESTATE
• A Study Among Upper-Tier Real Estate
  Professionals
• October 2005

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METHODOLOGY

• ABOUT THIS SURVEY
• Between September 15th and October 10th 2005,
  Unique Homes conducted a survey among members of
  The Luxury Real Estate Council, a nationally
  representative body of upper-tier residential
  real estate professionals.
• Respondents included brokers, associate brokers
  agents, owners, and owner/brokers.
• Respondents were asked to provide feedback
  related to outlook and trends at the top levels
  of the luxury residential real estate market.
• This study was executed over the internet
  utilizing technology by SurveyMonkey.com.

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LUXURY BUYERSHow urgent are they? What are they
looking for?How are they paying? What are their
professions?How important is the international
buyer?
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LUXURY BUYERS

• HOW URGENT ARE THEY?
• Only 2 of the upper-tier real estate
  professionals surveyed characterize the attitude
  of their luxury buyers as Urgent, needs to buy
  quickly.
• Approximately half (48) said luxury buyers
  Want to find the perfect house, no matter how
  long it takes.
• 43 say luxury buyers are Somewhat urgent to
  buy, but willing to spend SOME time looking for
  the perfect house.

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WHAT ARE THEY LOOKING FOR?
LUXURY BUYERS

• Half of buyers of million-dollar-plus-homes are
  looking for a primary residence.
• 40 of buyers at this level are looking for a
  second home/vacation home.
• 10 are looking for an investment property.

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LUXURY BUYERS

• HOW ARE THEY PAYING?
• The majority (54) of million-dollar-plus buyers
  are paying all cash for their homes.
• 19 of million-dollar-plus buyers are opting for
  30-year fixed mortgages. Only 4 are utilizing a
  20-year fixed mortgage.

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LUXURY BUYERS

• WHAT DO THEY DO FOR A LIVING?
• The most prevalent occupation luxury real estate
  professionals are seeing among million-dollar-plus
  buyers is Entrepreneur cited by 76.
• The second and third most prevalent occupations
  are Investment and Finance, cited by 57, and
  Medicine/Healthcare, cited by 41.
• Real Estate also made the list at 24 and
  Entertainment at 20.

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LUXURY BUYERS

• FOREIGN INFLUENCE
• Two-thirds of respondents indicated noticeable
  activity from foreign luxury buyers in their
  respective markets.
• U.K. buyers represent the largest percentage
  (50) of foreigners purchasing luxury real estate
  in the U.S.
• Canada was cited as the number two foreign
  purchaser (23) of U.S. luxury real estate.
• Rounding out the top three is India at 15.

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LUXURY SELLERSHow urgent are they?Why are they
selling?
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LUXURY SELLERS

• HOW URGENT ARE THEY?
• Three-quarters of luxury sellers will negotiate
  some on price, but not much.
• 11 will not refuse any reasonable offer.
• 14 know the price they want, and are willing to
  wait if necessary.

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WHY ARE THEY SELLING?
LUXURY SELLERS

• 48 are downsizing by choice.
• 16 are selling to move-up to a bigger or more
  expensive home.
• 14 are relocating for personal reasons 5 are
  relocating for work reasons.
• 16 of respondents chose other the answers
  given ranged from Returning to their home
  country to They feel prices are about to go
  down and they want to catch the crest of the
  wave, so they will list and wait for their price.

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STYLES, FEATURES AMMENITIES OF
MULTI-MILLION-DOLLAR HOMES
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STYLES, FEATURES AMMENITIESPOPULAR
ARCHITECTURAL STYLES FOR LUXURY HOMES

• Spanish/Mediterranean ranked as the most
  desired style of luxury home today.
• Contemporary ranked as the second most
  frequently requested house style.
• The styles rounding out the top five were
  Georgian, Colonial and Southern Plantation,
  respectively.

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STYLES, FEATURES AMMENITIES
PREFERENCES GEOGRAPHICALLY

•  
•    Florida, California Texas
  Spanish/Mediterranean
•    Virginia Colonial
•     Georgia Southern Plantation
•     New Jersey Contemporary
•     Maine Contemporary, Georgian, Arts Crafts
  (tie)
•  

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TRAITS THAT MOVE MILLION PROPERTIES
STYLES, FEATURES AMMENITIES

• Nearly seven in ten respondents chose both
  Location, Location, Location, and
  Breathtaking views as the most desirable
  elements of a luxury property.
• Privacy, Proximity to water, and Size/Square
  footage, came in third, fourth and fifth.
• The traits LEAST LIKELY to move a
  million-dollar-plus property are Proximity to
  town center, Noted architect or famous
  owner. Willingness to sell with furnishings
  came in last.

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MOST EXPENSIVE SALES 2005 LOOKING AHEAD 2006
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MOST EXPENSIVE SALES OF 2005
MOST EXPENSIVE SALES AND LOOKING AHEAD

• 34 reported their highest-priced sale in the
  range of 1 million to 1.99 million.
• 38 had a top sale in the 2 million to 4.99
  million range.
• 18 made the 5 million to 9.99 million range.
• 10 struck real estate gold with a sale in excess
  of 10 million.

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MOST EXPENSIVE SALES AND LOOKING AHEAD

• A POSITIVE OUTLOOK FOR 2006 
• The majority of top real estate professionals
  (57) anticipate an increase in their annual
  commissions next year.
• 27 think their annual income will stay the same.
• Only 16 predict a downturn.