The Million Dollar Market
by Carol Ann Hewitt, CIPS, CLHMS Oxford Realty International Inc.
Who is buying million dollar homes? Typical buyers are about 47 years old, married with a few children, and have transacted with a real estate agent. They take their time buying — 40 percent taking an average of 6 months or longer.
A huge transfer of wealth from a prior hardworking generation to the baby boomers and a constant flow of foreign investors continue to fuel the luxury market, as the world market perceives the United States as a safe haven for investments.
Florida is the fifth hottest market in the United States. CNN recently reported that Orlando’s median price of $195,000 represents a 60.6 percent increase above the past five years, and it projects a 14.3 percent growth in the future.
Square footage is the “Holy Grail,” while larger rooms — and more of them — come at the expense of lot size. Well-designed quality kitchens and baths, sophisticated media rooms and wine cellars are favorite amenities. Children’s playrooms or bonus rooms are also essentials for the luxury buyer.
According to the local Multiple Listing Service system, the million-dollar-plus market in the Southwest Orlando/Windermere areas has had the greatest growth in the tri-county region since 2001. Consider the following sales of more than $1 million: 189 in 2005, 116 in 2004, 62 in 2003, 47 in 2002, and 23 in 2001.
Global statistics reported in USA Today indicate that during the past five years, a 154 percent increase in home values in the United Kingdom, compared to a 73 percent increase in U.S. values. The United States ranks ninth among other countries with increased home values, preceded by South Africa with the highest at 244 percent, 192 percent in Ireland and 145 percent in Spain. Germany, Japan and Hong Kong have experienced a decline in home value throughout the past five years, with Hong Kong down to 43 percent.
When compared to other types of investments, home ownership, with its favorable tax benefits, is still considered one of the best investments.
Who is buying million dollar homes? Typical buyers are about 47 years old, married with a few children, and have transacted with a real estate agent. They take their time buying — 40 percent taking an average of 6 months or longer.
A huge transfer of wealth from a prior hardworking generation to the baby boomers and a constant flow of foreign investors continue to fuel the luxury market, as the world market perceives the United States as a safe haven for investments.
Florida is the fifth hottest market in the United States. CNN recently reported that Orlando’s median price of $195,000 represents a 60.6 percent increase above the past five years, and it projects a 14.3 percent growth in the future.
Square footage is the “Holy Grail,” while larger rooms — and more of them — come at the expense of lot size. Well-designed quality kitchens and baths, sophisticated media rooms and wine cellars are favorite amenities. Children’s playrooms or bonus rooms are also essentials for the luxury buyer.
According to the local Multiple Listing Service system, the million-dollar-plus market in the Southwest Orlando/Windermere areas has had the greatest growth in the tri-county region since 2001. Consider the following sales of more than $1 million: 189 in 2005, 116 in 2004, 62 in 2003, 47 in 2002, and 23 in 2001.
Global statistics reported in USA Today indicate that during the past five years, a 154 percent increase in home values in the United Kingdom, compared to a 73 percent increase in U.S. values. The United States ranks ninth among other countries with increased home values, preceded by South Africa with the highest at 244 percent, 192 percent in Ireland and 145 percent in Spain. Germany, Japan and Hong Kong have experienced a decline in home value throughout the past five years, with Hong Kong down to 43 percent.
When compared to other types of investments, home ownership, with its favorable tax benefits, is still considered one of the best investments.
posted by Orlando Florida Luxury Real Estate Agent at 12:02 PM
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