Romancing the Home

Luxury markets are defined as the top 10% of homes in any given market, measured by price, but never less than $500,000. 

There’s currently a 30-month inventory of homes priced over $1,000,000 in the Salt Lake City area. Total transactions are off by 25% from a year ago. This is shaping up to be one of the weakest categories of real estate in 2010.

This year at the NAR Convention, I attended two great courses led by Laurie Moore, Director of the Institute of Luxury Home Marketing.  The overriding theme:  Now, more than ever, luxury sellers are in need of agents that are entrepreneurial problems solvers and great marketers. 

Luxury Market Trends:

• Mortgage defaults on Jumbo Loans (loans over $750,000) are now twice the rate of Conventional Loans.  This means a growing inventory of short sales and foreclosures of luxury properties.
• Attitudes and motivations are shifting away from conspicuous consumption, to comfortable and peaceful luxury.
• Design esthetics are shifting as younger buyers enter the category.  A low carbon foot-print is growing in importance.
• All-cash bargain hunters are on the move.

My favorite take-a-way from the panel of experts is a strategy called Romancing the Home.  It’s based on the premise that every home has a story to tell that is unique.  The best marketers are telling stories that are compelling, visual and emotional.  The more detail, the better.