Sales Plunge (again), Chinese Luxury, & Swimming with Sharks
By Camilla McLaughlin
No end in sight? That has to be what many are thinking in light of the 12-percent plunge in pending home sales in April, following gains in February and March. The index of pending home sales compiled by the National Association of Realtors is a forward-looking metric based on the number of contracts for future purchases signed in a given month. NAR’s chief economist, Lawrence Yun, cited tight credit as the primary constraint on the market. http://bit.ly/ke9QAr Another hit for housing came earlier in the week from Census Bureau data showing new home sales down 23.1 percent in April over the same month last year when the $8,000 federal tax credit was a big incentive for buyers. Still, the median sales price for new homes rose 4.6 percent over this period, which is a good indication of few distressed sales and lighter inventories of new homes.
Chinese luxury Growing demand makes China one of the brightest growth prospects for luxury brands. No longer spurred simply to demonstrate wealth and status, demand is shifting to a desire for self-reward and an emphasis on experiential luxury. KPMG has an interesting study on Chinese luxury. Thanks to @antoinelacroix for the link. http://bit.ly/jmMi2P. “More than 50 billionaires in China under the age of 40” Tweets @ICLP_Zurich with a link to an article in Jing Daily that reports on luxury and culture in China. http://bit.ly/jmMi2P
Power of Luxury Marketing A home sells for $6.25 million in 63 days with multiple offers in Florida! This might seem like an anecdote from the boom but actually it occurred just recently. @luxuryportfolio attributes the sale to expert marketing. Along with showcasing the property to a global audience, the listing agents also held a cocktail party for power brokers and their clients in northeast Florida. http://dlvr.it/T6r6R
Every house has a story. Luxury real estate expert Laurie Moore Moore tells real estate agents a home’s story is an excellent way to market an upscale home so I wasn’t surprised to see this Tweet from Moore’s company, the Institute for Luxury Home Marketing @ilhm: “Luxury Insights: A ‘Skinny’ House and Telling Stories,” which links to a blurb on NPR about a 9.5-foot-wide home in Greenwich Village on the market for $4.8 million. http://bit.ly/lkLfPP
Best time to buy? An article in the San Francisco Chronicle’s SFGate says the next few months might be prime. The bottom line: prices are low, sellers motivated and interest rates are expected to go up. Thanks to @KCMcrew for the link http://bit.ly/kmpSDo
Gotta love lists! This week saw America’s most and least gas guzzling cities. It’s no surprise that cities with strong urban cores and transportation lead the list of the least gas guzzling. The top 10 includes New York, Los Angeles, Miami and San Francisco, but surprises among this group include Bergen-Passaic, N.J.; Orange County, Calif.; and San Jose, Calif. http://onforb.es/kfjlmV List impresarios @forbes tweeted the link.
Most well-read cities or cities most likely to purchase from Amazon? This week Amazon came out with a list dubbed The Most Well-Read Cities in the U.S. To come up with the list, Amazon computed all their book, magazine and newspaper sales in both print and kindle formats. While the list is a good indicator of the most well-read cities, it really is an even better tally of where Amazon sells the most. Still, inquiring readers want to know: Cambridge, Mass.; Alexandria, Va.; Berkeley, Calif.; Ann Arbor, Mich.; Boulder, Colo.; Miami; Salt Lake City; Gainesville, Fla.; Seattle; and Arlington, Va., comprised the top 10. http://on.mash.to/mbX7mU The link comes from Mashable via @pctechz Even with the University of Colorado, Boulder might seem an unlikely candidate but evidently cookbooks are big sellers there.
Swimming with great whites, literally! David Meerman Scott, @dmscott, says that’s not on his bucket list but he gave us a glimpse into what it would be like with a Tweet on the June issue of Surfer Magazine. The issue features a profile of big wave surfer and great white wrangler Mark Healey (pictured) @healeysurf. http://bit.ly/jfM9XR
Island reveries! Private islands captured my imagination years ago while writing a story for Unique Homes. Since then any mentions of ultra private islands catch my eye as did a Tweet on North island in the Seychelle’s, where Will and Kate honeymooned. No one knows islands better than Farhad Vladi, @Vladi_Islands who arranged the rental. @ForbesLife has the details http://onforb.es/jGxIFv
China and India are certainly the top two countries to keep and eye on during the next few years. The growth rate of these two countries is spectacular.