In February, at The Keyes Company annual luxury market update, we learned about the state of the market locally and globally. The update was given by the President of Luxury Portfolio International, Stephanie Anton. Keyes is a shareholder and member of Luxury Portfolio International, a collection of local names that, together, offer global reach with more sales of luxury properties than any other brand. This is the largest global network of locally branded, independent brokerages with more than 565 companies, 4,300 offices, six continents, 70+ countries and 130,000 associates globally. The network is offered by invitation-only membership and in 2017 sold $372 billion in volume ($1.1M transactions). The 2018 numbers will be reported by next quarter.
Global Wealth is healthy. In 2017, the world’s ultra-high net worth (UHNW) – net worth of $30m or more – rose by 12.9 percent. The U.S. remains the leading country for UHNW at 31 percent, but recorded the weakest growth in population and net worth. Collective wealth in China jumped by 33 percent and Hong Kong overtook New York City with the most UHNW individuals.
With this there is a shift in the flow of global capital. People from emerging markets are investing in developed nations where they look for stability and protection of their capital. Whereas investors from developed nations look to the emerging markets for a higher return with the inherent risk.
So, how is the high-end market? The negative in the U.S. is that in New York metro market, sale prices are down 5 percent and total sales are down 17 percent. Some of the culprits include tax changes, a volatile stock market and an oversupply (16 months) of homes for sale. The positive is price growth in 20 percent of major markets, with double-digit price growth in the top 5 percent. Sales rose 6 percent year-over-year for homes listed in the $1M+ range. Median age of inventory was 121 days, down 9 days or 6.9 percent year-over-year.
In the local market — Coconut Grove, Coral Gables, Pinecrest and Palmetto Bay — sales were down 15 percent in 2018 versus 2017. There is an oversupply that will take nearly two years to absorb at the current market pace. At the same time The Keyes Company, Realtors grew 20 percent in sales of over $1 million homes in Dade County, with over $1 billion in total luxury sales volume.
Trends in luxury today include an ardent focus on design of the home, sculptured to individual desires. Clean lines and open living, new tp Miami, is also what is new in other parts of the world. The square design we see in new construction here is also found there.
Affluent consumers are pursuing goodness-based living with emotional connections, sunsets, outdoor living, pools, healthy eating and exercise areas. A refuge from the world with comfort and space to feed the family in peace. There is a trend toward “wi-fi free zones” and the ability to leave shoes and cell phones at the door when entering a home. It’s time to live the fulfilled life where privacy becomes a privilege. They look to create a world that is away from everybody else and truly live in the moment.
In addition, dual everything rules. Dual master closets, dishwashers, refrigerators, kitchen islands (one wet, the other dry), and, yes, dual master bedrooms with separate bathrooms. It’s aspirational living where there is a high degree of control and organizational.
The consumer will likely want smart home features with sustainability. They want to manage the shades, the air conditioner, the sprinklers, the appliances and other feature via their devices.
The top five features that luxury buyers look for are:
- Proximity to dining.
- Outdoor space.
- Multiple view surveillance cameras.
- Monitored security.
- Commercial grade kitchen appliances.
The Keyes Company, Realtors is a brand that luxury sellers and buyers can be very proud to have as their agent. The reach and local knowledge deliver with integrity and great service.
As an update, The DeValdivielso Team continues to evolve. Jonathan has enlisted with the U.S. Navy and is serving our country as a full-time sailor. Michael is working full-time at Zuma Restaurant and pursuing his bachelor’s degree in Hospitality at Johnson & Wales University. Both continue to be licensed realtors and part of the team. Liede and I are extremely grateful for the continued support that has allowed us the opportunity to raise our family here in paradise.
Happy Passover! May the blessings of Health and Peace Passover you and yours this season. Wishing you joy and many blessings at Passover and throughout the year! May the beauty of Easter holidays warm your heart and bring peace and joy to your family. May the miracle of Christ’s resurrection fill our hearts with love, hope, and blissful joy.
Frank DeValdivielso, a member the Miami FL Team and The Keyes Company, is based out of 2423 Le Jeune Road, Coral Gables, FL 33134. For more information you can reach Frank at his office, 786 378 8450, or cell, 786 273 8507. You can also email him at RealEstate@MiamiFLTeam.com and please be sure to visit www.MiamiFLTeam.com for the latest listing and news regarding real estate. Call to sign up for a free monthly market report of your zip code.