Luxury homebuyers bullish on real estate
Luxury homebuyers, many of whom have been drawn to Hawaii's second home and resort market, are still bullish on real estate despite recent cooling in the market.
They will also consider further real estate investment in the coming year, according to a survey released yesterday.
More than half of the 301 U.S. homeowners surveyed by Coldwell Banker Previews International, the luxury-home subs- idiary of Coldwell Banker Real Estate Corp., said they expect the value of their home to increase in the next year and over the next five years.
As many as 10 percent of those surveyed said they expected to see a significant increase in value over the next year, and as many as 36 percent said they expected to see significant increases over the next five years.
"This survey confirms what we have been seeing in Hawaii's luxury real estate market for years," said Anne Hogan Perry, vice president of Coldwell Banker Pacific Properties. "Affluent people expect the highest quality of life when shopping for their first, second or third homes. Hawaii offers the status, the lifestyle and overall perception to define luxury living. Having the comfort of being a part of the United States with a year-round tropical climate, Hawaii is a hot commodity for many high-end buyers."
The luxury homeowners surveyed were so positive about the real estate market that 40 percent of them said they would consider purchasing a second home in the next year for family use. As many as 38 percent of respondents would consider purchasing property for investment and 22 percent said they would consider purchasing a retirement home.
The 2007 Coldwell Banker Previews International Luxury Survey interviewed homeowners whose primary residence was valued at more than $1 million and who have investable assets of more than $1 million.
Last year, the company logged $47 billion in sales for homes valued at $1 million or more.