Previews® 2013 Luxury Consumer Survey
As always, the Luxury Market Report reveals some interesting trends driving the high-end housing sector. Previews is honored to bring them to the attention of our agents and clients so they can make more informed decisions. It speaks to our long history of serving the world of fine real estate.
“Overall, 59% of all wealthy consumers indicate that name recognition of a firm is important when choosing a real estate agent.”
As the U.S. real estate market continues gaining strength this year, how do affluent consumers view their real estate investments now and in the future? A survey conducted by Coldwell Banker Previews International® and the Luxury® Institute LLC finds that most affluent consumers today have confidence in the long-term stability of U.S. real estate.
One-third of those surveyed indicate that they are considering the purchase of a residential property in the next 12 months. On average, those who are in the market for a residential property also expect that their home purchase will increase in value by about 14% in the next five years. Lower interest rates, location-based moves and the investment potential of real estate are the main motivations for consumers who plan to buy a home in the next year.
When selecting a real estate agent, those surveyed who are at higher household income levels place importance on real estate agents with luxury housing market credentials and access to special marketing programs. Overall, 59% of all wealthy consumers and 61% of ultra wealthy consumers indicate that name recognition of a firm is important during the real estate agent selection process.
Amenities…The Generation Gap
When it comes to property amenities, a generation gap begins to emerge. Among younger generations, open floor plans and fully automated, wired homes are rising in popularity. In Miami and Los Angeles, wealthy millennials are snapping up residences with open spaces for entertaining and are primed for technology.
“Full home automation is one amenity that is hot right now,” said Danny Hertzberg, a Previews® Property Specialist with Coldwell Banker Residential Real Estate in Miami. “I have seen at least a 50% spike in buyers asking for it. They want to be able to adjust music and lighting, or control the temperature of their house with their iPhones or iPads.”
The survey also finds that pools, outdoor kitchens and home gyms are appealing to younger consumers, while less importance is placed on tennis/ sports courts, staff quarters and separate catering kitchens. Jade Mills, a Previews Property Specialist with Coldwell Banker Residential Brokerage in Beverly Hills, points out that amenities like tennis courts are losing their luster. Many “clients will see a court and say, ‘we will take out the court and have beautiful grounds.” And as for pools? “It is difficult to sell a home without a pool.”
In Miami, outdoor kitchens have become critical for young affluent buyers. “In the same way that the kitchen has now become an additional room for entertaining, the outdoor kitchen is the gathering point for pool parties and outdoor events,” said Hertzberg.
Movement to Mobile
While many wealthy consumers rely on traditional real estate marketing sources such as print advertising and word of mouth, not surprisingly, many respondents increasingly rely on mobile technology for search. In fact, 43% of affluent consumers report that they use a tablet and 34% search on a smartphone when looking for a residential property. Additionally, online consumer reviews and social media are beginning to have influence for younger affluents.
Freedom to Live Anywhere
While location is cited as the most important factor in choosing a luxury residence, a growing number of affluents are less geography-bound. According to the survey, one in five affluent consumers and one in four of ultra affluent consumers say that when searching for their next primary home, they are not limited by location and have the freedom to purchase an ideal property that truly fits their lifestyle.
“Luxury homes are for more than successful and retired empty nesters,” says Milton Pedraza, CEO of the Luxury Institute. “Today’s luxury buyer is both dynamic and diverse, and it’s reflected in the homes and products they’re buying.” From the mobile movement to generational preferences, the Previews® 2013 Luxury Consumer Survey not only reflects changes in the demands of the affluent marketplace today, but confidence about the future direction of their real estate investments.
The complete survey methodology and weighted variables are available at
Methodology: The Luxur y Institute, in par tnership with Coldwell Banker Previews International®, conducted research on the topic of real estate during the third quar ter of 2013. This in-depth survey includes responses from 300 af fluent male and female consumers in the United States. Respondents were recruited and screened to only include those age 21 or older with a minimum annual household income of $250,000.
For questions about buying and selling real estate in Huntington Beach and Coastal Orange County, contact Scot Campbell.
He is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA.
Scot is a Previews Property Specialist, has been a licensed for over 27 years, and has brokered over 1000 homes… including just about every type of transaction imaginable.
Read his profile and client reviews at www.ScotCampbell.com
He can be reached at 714-336-0394 (cell/text) or via email at Scot.Campbell@ColdwellBanker.com