Luxury Home Market Update - January 2010

Market Update January 2010
As luxury home practitioners, very often we are asked to dust off our crystal ball and comment on the state of the luxury home market. Although the interpretation of historical trade patterns is usually insightful, extrapolation of these trends is very difficult in times of economic uncertainty. We can compare and contrast, for instance, in 2005 our market intelligence noted that Bermudians were the driving force at this end of the market in terms of acquisitions with 75% of the luxury homes purchased by Bermudians. In 2009, Bermudians accounted for only 33% of luxury homes purchased. Overall, in 2009 dollar and transaction volumes in our stand-alone luxury home market were 50% down compared to 2008. We are aware of a couple of pending contracts which will close during the first quarter of 2010 equating to sales proceeds of approximately 11 million dollars.

Freestanding luxury home inventory currently on the market for sale and available to overseas buyers increased marginally during the last quarter of 2009, equating to approximately 18 homes with a total dollar value of $175 million. Interestingly, although demand from overseas buyers fell off in 2009, there are signs that it is very subtly re- emerging as a number of agents purport to have qualified overseas buyers looking for luxury homes in Bermuda.

Bermudiana

Exquisite waterfront property located in the

heart of Tucker’s Town, Bermuda

 
This newsletter written by Brian Madeiros, President of Coldwell Bnanker Bermuda Realty is available in its entirety on Coldwell Banker Bermuda Realty's website.