Penthhouse Sales on The Way Up

The year started with the now-famous $88 million sale of a penthouse at 15 Central Park West, and before 2012 was done, city-wide records for condo, co-op and townhouse sales had all been broken — some more than once.

In 2012, there were 10 sales over $30 million, compared to six in 2011, according to data from the listings website StreetEasy. And at $88 million, 2012’s most expensive sale dwarfs 2011’s $48 million record and 2007’s $50 million top deal.
Brokers attributed 2012’s jaw-dropping prices to limited inventory and a seemingly insatiable appetite for high-end product.

Luxury Homes Spike the End of 2012, Cause? Wilmington NC is Trending the Same.

 

 

Wilmington Luxury Homes Sales jumped as it did Nationaly. Why?

Sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.

Many sellers wanted to cash in on their homes before a widely expected capital gains hike -- to 20% from 15% -- that was part of the fiscal cliff budget deal. High-income earners (singles with income of $200,000 or more and couples making more than $250,000) also wanted to close sales ahead of a 3.8% Medicare surtax on investment income that was already slated to go into effect this year as part of the Affordable Care Act.

Does size Matter in the Wilmington NC Luxury Home?

Price per square foot has long been equated with defining a home’s value or degree of luxury. Pre-2008, many luxury communities experienced sales of more than $800 per square foot, while tract homes, or houses in so-called less desired areas, would sell for less than $100 per square foot.

Size does matter in Luxury Homes.  Where we are seeing the size of homes shrink to the average buyer as they take into operating costs.  The Luxury Home buyer typically does not have the majority of their wealth invested in their home. The amenities that come in luxury homes vary by area. In Wilmingont NC, the Luxury homes typically feature vaulted, cathedral, or high ceilings with extensive crown molding, hardwood or stone flooring, and incredible views or an expansive lot. Other items they include media rooms, wine cellars, and security systems, as well as zoned heating and air. The accompanying garages house three or more cars. Kitchens are a big deal,” Tina Abraham says. Luxury home owners expect granite countertops, custom cabinets, double ovens and micro-waves, and top-of-the-line appliances. “It’s all Viking, Thermador, or Bosch” .

Viewings Increase for Wrightsville Beach Homes

Wrightsville Beach Luxury

During economic times buying a beach home was put on the back burner for awhile. They were not seen as a must have.  In the last three months there has been an increase in viewings; and more importantly solds in the Wrightsville Beach area.  These Luxury homes are at there lowest in nine years.  Buyers in the luxury market have realized now is the time to get off of the fence and purchase these magnificent homes. 

In the last 3 months there have been 120 homes sold in the Wrightsville Beach area.  With the most expensive one being sold at $3.2 million. Beach property continues to be a great investment in the Wilmington and Wrightsville Beach area!

Are Landfall Courntry Club in Wilmington Homes Selling?

While Landfall offers one of the only private, member-owned equity clubs on the North Carolina coast, Wilmington offers a combination of urban and rural luxuries not easily found anywhere else in the Southeast.
The incomparable Country Club of Landfall maintains 2 golf courses with 45 championship holes designed by Golf Legends Pete Dye and Jack Nicklaus.

So how does Landfall real estate stack up 2012?  Landfall Real Estate Stays Strong–Latest Numbers Buyers and sellers are on the same page….Homes are selling for 95% of the list price.  Currently there are 118 Landfall homes for sale ranging from $350,000 to $3.5 Million.  In the last year there have been 77 homes sold with the lowes being $273,000 and the highest being $2.8 million. Last year this time we only had 59 homes sold about a 30% increase!

Luxury Homes in Wilmington Selling.

Luxury Homes are they moving in Wilmington?
In the last 6 months we have seen 21 homes sell that were priced above 1 million. 13 of those were in Wrightsville Beach. Some great deals are being had with some of the higher priced homes seeing a 25% decrease in pricing. Many who have been sitting on the fence are finally getting off.

My Listing on Fig 8 Sold Aug 30, 2012

Luxury Real Estate Market "Capitulation"

Why are they calling this the"Year of Capitulation" in the Luxury Home market?
Even the rich aren’t immune to the pressures of the housing market.
Prices for homes priced at $1 million or more have fallen a 20 percent this year, according to RealtyTrac. The average sale price for top-tier real estate has fallen to just over $2 million, from $2.5 million in 2011.
Those prices cuts stand in stark contrast to the broader housing market, which is seeing early signs of price stability and even price increases for the first time in years.
All that price-chopping at the top, however, has sparked a wave of sales as buyers scoop up deals and sellers accept the new reality of lower prices.
The number of transactions for homes priced at $1 million or more has jumped 18 percent this year, one of the strongest increases since 2008, according to Realtytrac.
Brokers for luxury real estate are already calling 2012 the “The Year of Capitulation” for wealthy sellers.
There are several factors behind the price drops. The high end of the market didn’t fall as much or as early as the broader market, since there weren’t as many distressed sellers that were forced to sell. Those wealthier sellers have hung on to their properties, waiting for prices to approach 2008 levels.
Now that they see that the prices of 2008 aren’t likely to return anytime soon, many are deciding to drop their prices just to get a deal. The increase in sales has itself spurred sales, as wealthy sellers see a larger number homes in their neighborhoods trading at lower prices.