Wealthy Spending Again on Luxury Homes, Atlanta to Follow Suit

May 25, 2010 - PRLog -- In April, Texas Energy executive Kelcy Warren purchased a Colorado property for $46.5 million.  Hot on the heels of this transaction, an un-named Indonesian buyer contracted in May for a 48,000 square foot Bel-Air mansion for an amount reported to be close to $50 million.  If the Los Angeles transaction closes, it will bump the Colorado sale to set the newest record for this year’s priciest residential transaction.  Some brokers speculate that these transactions illustrate a return of the wealthy to the upper-tier housing market.
Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing – which trains agents in the luxury market and awards an international designation to the most successful –reports that, “Institute members from many markets across the country are telling us that buyers at the top of the market are looking again and that many are cash buyers.  We believe this anecdotal evidence may herald the return of the very affluent to the national residential market.” But is this the case in our local market?
Marie Dinsmore, a luxury home professional with RE/MAX 400 North in north Metro Atlanta says, “We’ve yet to see the return of the upper-tier buyer locally.  Our local luxury market starts at $500,000 and many local upscale homes are such good values that smart buyers should reappear soon. Currently in Forsyth County, Cumming, Georgia, there are 24 homes pending sale from $500,000 to $800,000. The most expensive home currently listed in the area is $28 million.
“In the recent economic downturn, the wealthy experienced substantial drops in their portfolios and felt the uncertainty of global economic conditions, said Moore-Moore.  “As a result, the luxury market shrank across all product and service categories, including housing. In addition, many wealthy converted investments to cash and have been watching and waiting on the investment sidelines. Today, many are looking at U.S. home values and deciding to buy another residence as both a lifestyle decision and a portfolio play. Although the current turmoil in global economies is a wild card which could change things, we think the luxury home buyer is re-entering many market and shopping for fabulous homes as smart investments.”
If you are in the market for a luxury home, it is wise to choose a REALTOR with a CLHMS (Certified Luxury Home Marketing Specialist) designation to meet your specific needs. Unlike most professional designations, a REALTOR who’s earned a CLHMS has to continually maintain home sales above $500,000 to keep his or her designation valid.
You can reach Marie Dinsmore, Atlanta-based REALTOR and CLHMS at (770) 712-7789 or Marie@DinsmoreTeam.com. www.dinsmoreteam.com