Blue-Chip Hot Spots Sidestep Housing Downturn

Blue-Chip Hot Spots Sidestep Housing Downturn

Residential real estate prices are clicking upward in numerous neighborhoods around the U.S. Look closer to home and you'll also see that there's good news in the luxury home segment. Forbes magazine reports that many of the nation’s “blue-chip” neighborhoods have largely sidestepped the housing downturn.

While gambles on up-and-coming neighborhoods and new developments paid off for many real estate investors during the boom, housing markets across the country are now awash with unsold condos and suffering from sluggish sales.

But this is not the case for homeowners in so-called "blue chip" neighborhoods. Properties in these well-established spots have held on to and increased in value over the last 17 years. They include segments of Pacific Palisades in Los Angeles, areas of Chicago and parts of University Park in Dallas. In these spots, the median home sale price has grown, in that time, by 440%, 236% and 148%, respectively. Properties in these areas have held their value and in many cases increased just as steadily in the past two years as they have in the last 17. While this may be a function of location, location, location. It is also a result of the strength of the upper-tier housing market. Note the median home price in each of the Forbes hot-spots below and you'll see what I mean.

These neighborhoods, located in the country's 15 largest metros, have enjoyed the greatest total appreciation since 1990 of any metropolitan areas in the country. Forbes gathered data from NeighborhoodScout.com which aggregated information from the U.S. Census Bureau.

Here are Forbes top 15 hot spots, their median home sale price and price growth since 1990:

Miami, Brickell Ave. and 13th St. - $623,492, 471 percent
Los Angeles, Pacific Palisades - $3.1 million, 440 percent
Washington, Rock Creek Parkway and Massachusetts Ave. - $2.84 million, 393 percent
New York, Fifth Ave. and 70th St. - $2.45 million, 325 percent
San Francisco, El Camino Del Mar and Lake St. - $2.2 million, 282 percent
Atlanta, Ponce De Leon Ave. and Oakdale Road - $703,087, 237 percent
Chicago, Lake Shore Drive and Route 41 - $1.91 million, 236 percent
Boston, Chelsea St. and Medford St. - $1.48 million, 221 percent
Seattle, Laurelhurst - $1.12 million, 216 percent
Minneapolis, Cedar Lake Road and Theodore Wirth Parkway - $305,290, 197 percent
Houston, West University Place - $663,740, 194 percent
Philadelphia, Walnut and Third streets - $914,115, 184 percent
Phoenix, Village On The Lakes and Taliverde - $1.01 million, 177 percent
Dallas, University Park - $898,640, 148 percent
Detroit, Grosse Point Park - $510,578, 142 percent

If the stats are correct, they seem to reinforce the idea that the luxury market is alive and well in the U.S.!

Visit more blogs by Sam Smith at www.bclh.com/blog

Estate of the Day: San Clemente Hillside Mansion

I came across this new construction Mediterranean home being built in San Clemente. It sits on top a wonderful view lot in San Clemente and boasts over 5800 square feet, with 6 bedroom & 6.5 baths. It sits on a large 14,000 square foot plus lot and has incredible views of the ocean & Dana point harbor. One of the unusual features of this home is large 2,660 square foot garage with 11 foot ceilings and room for 9 cars! A private elevator takes you from the garage to the first floor! It has a basement wine cellar & even a gym. For more information on this property click here. Listing & photo courtesy of Keller Williams Realty.

Southern California Home Price Appreication Trends

I just received this from a mortgage broker I use. It basically shows the estimated forecast of this current real estate cycle and when they believe the prices will start to go back up. If you look at the chart carefully, we are expected to hit a bottom in this market by the Summer of 2008. I have talked with many successful real estate investors from various states and they and confirm that this is what they believe to be true as well. Investors looking for that "good deal" should start getting everything in order and be ready to purchase that "good deal" in the early spring or summer of 2008. Any buyer who buys and holds during this time should benefit from real estate prices going up in the near future. I do not know the future of what the real estate market will do and cannot guarantee that prices will go up during a certain time but I have heard from various sources that spring/summer of 2008 will be the time to buy. If you are looking for that "great deal" feel free to give me a call at (949) 291-0424 or sam@bclh.com

Estate of the Day: San Clemente's Most Expensive Home

San Clemente's Most Expensive Home has just hit the market today. Listed at $7,000,000 by Keller Williams, this 1982 sq ft house sits on a 21,000 square foot plus ocean front lot!

The property has a circular driveway and a 3 car garage! It has a cute cottage style architecture and has 5 bedrooms and 2 baths. I visited this home several years ago when they were considering tearing down this property and building custom condos on this site. It really is hard to find almost a 1/2 acre lot on the ocean front bluff in San Clemente any more.

If you are looking for a one-of-a-kind property on an incredible lot with unbelievable views of the ocean this may be your property. For more detailed information on this property, you can go to Beach Cities Luxury Homes free MLS search engine. Photo courtesy of Keller Williams Realty.

"Inside The Minds" featuring Sam Smith

Press Release: Inside The Minds: California Real Estate Client Strategies

Sam Smith of Beach Cities Luxury Homes, selected by Aspatore Books as author in new authoritative book, California Real Estate Client Strategies: Industry Leaders on Understanding the Market and Best Practices for Success (Inside the Minds).

Boston, MA (12/05/2007)-- Sam Smith, of Beach Cities Luxury Homes, has been recognized as a leader in Real Estate by being selected as an author in the recently released book, California Real Estate Client Strategies published by Aspatore Books. California Real Estate Client Strategies, ISBN: 9781596227576, is an authoritative, insider’s perspective on the ins and outs of achieving success as a California real estate agent. Featuring top brokers and REALTORS® from real estate agencies across California, this book provides a broad, yet comprehensive overview of the unique aspects and challenges of working in the California real estate market. Discussing the competitive nature of real estate on the West Coast and the importance of standing out in the crowd, these authors raise critical points around understanding the real estate knowledge exclusive to California, including escrows, second homes, investment properties, and fractional ownership properties. From understanding the demographics of the state’s different regions to strategies for negotiating on behalf of one’s clients, these leaders articulate the finer points around California real estate now, and what will hold true into the future. The different niches represented and the breadth of perspectives presented enable readers to get inside some of the great minds of today, as experts offer a wealth of details around what it takes to secure long-term success in this endlessly demanding industry.

"Sam Smith skillfully describes the Luxury Southern California Real Estate Marketplace."

The Inside the Minds series is revolutionizing the business book market by publishing an unparalleled group of executives and providing an unprecedented introspective look into the leading minds of the business and legal world. For complete information on Inside the Minds, please visit Aspatore or email store@aspatore.com. This book can be purchased immediately by visiting Aspatore Books and is available through Amazon & bookstores nationwide. To order a copy of this book, you can also call 1-866-ASPATORE.

About Sam Smith:

Sam Smith, President of Beach Cities Luxury Homes specializes in Luxury Homes along the Beach Cities in South Orange County, California from San Clemente to Newport Beach. Sam has sold extensively along the Beach Cities in Orange County, California for the past 9 years and understands the privacy & financial nuances of selling Luxury Homes. His company was founded on the premises of providing excellence service and results for Luxury Home Sellers and comprises of only agents who have been certified as Luxury Home Specialists & maintain the standards for premium service to the upper tier marketplace.

About Aspatore – Publishers of C-Level Business Intelligence
Aspatore Books is the largest and most exclusive publisher of C-Level executives (CEO, CFO, CTO, CMO, Partner) from the world's most respected companies and law firms. Aspatore annually publishes a select group of C-Level executives from the Global 1,000, top 250 law firms (Partners & Chairs), and other leading companies of all sizes. C-Level Business Intelligence™, as conceptualized and developed by Aspatore Books, provides professionals of all levels with proven business intelligence from industry insiders – direct and unfiltered insight from those who know it best – as opposed to third-party accounts offered by unknown authors and analysts. Aspatore Books is committed to publishing an innovative line of business and legal books, those which lay forth principles and offer insights that when employed, can have a direct financial impact on the reader's business objectives, whatever they may be.
For information: www.Aspatore.com Contact: rpollock@aspatore.com Phone: 1-866-ASPATORE

San Clemente Home Trends

We are starting to see the number of homes for sale in San Clemente coming down. Finally! Over the summer months we had so many homes for sale that the buyers had so many prices to choose from. The Orange County register reported a drop in the median price of an Orange County home from the months of June through September from $640,000 to $570,000 in three short months. There were a lot of factors that were in this marketplace. 1) We saw a lot of adjustable rate mortgages coming due this year. I talked with many owners who's payments on a small condo went from $2,500 to $7,000/month! Most of these owners couldn't afford their payments so they were just walking away from their homes. For those that could hang on for a couple of months we saw them put their homes up for sale in desperation. The sad part about this is that their property values were less than what they paid for them two years ago. The hardest hit areas in San Clemente was Talega. 2) We saw a lot of REO's coming back on the market. REO's are Real Estate Owned properties that they banks bought back from foreclosure. The banks wanted to get rid of these properties this year so they were pricing them well below the current market values just to get them sold quickly. Most of these were able to sell but they brought down the homes values in doing so. 3) New home builders also were in the market. They were under financial obligation from the banks to keep building the homes they got financing for several years back when the market was good. In order to sell these homes they were offering huge incentives to induce people to buy their homes. It was hard for most re-sale homes to compete with this when the price was comparable to their home and on top of that they had unbelievable incentives to buy the new home and not the re-sale home. I saw one home builder offering to pay their mortgage up to 1 year if the buyer purchased their home. Now the summer is over and the number of homes is coming off the market. We are now starting to see more serious buyers out in the marketplace and making offers on properties. It's simply supply and demand. Now the supply of homes is going down so If you are thinking about selling your home, NOW is the time. If you wait until the spring/summer time It will be too late. You will be competing with a very large number of homes and the price you get for your home, if you do get is sold, may be less. If you want a free consultation on what your home is worth, give me a call: (949) 291-0424 or email me at sam@bclh.com. I can help you with the timing of your sale that will get you the most money for your home!

Southwest San Clemente New Listing

A new listing just came up in Southwest San Clemente at 146 W Avenida Alessandro. It was recently remolded to a Victorian Country Farmhouse by the previous owner. It has a Kitchen that would make Martha Stewart proud of. Here are some details about the property:

Charming Victorian Farmhouse Only 2 Blocks To The Beach! Best Location in SW San Clemente with Ocean Views from Master Retreat & Upstairs Bedroom. Lots of Charm w/ Hardwood Flooring, Wainscoting & Upscale Country Kitchen with Professional Range & Hood & Huge Pantry That Would Make Martha Stewart Proud. Large Master Suite with Separate Ocean View Retreat, Fireplace & Deck. Three Ocean View Decks! Best Buy in SW San Clemente!

The property is represented by Sam Smith of Beach Cities Luxury Homes. For more information about this property or to see additional photos please visit http://www.bclh.com/ Also on this website their is a feature to download an online brochure of the property! Just click on the property, scroll your mouse over "Property Details" and click "Document" Instantly, a PDF Brochure of the property comes up on your computer! Want to see this home? Contact Sam Smith directly at (949) 291-0424.

San Clemente Luxury Home Press Release

Press Release

$175 million sale sets new U.S. residential sales record: Trinchera Ranch, Colorado

Most expensive property for sale in San Clemente: $6,700,000. Virtual Tour

(December, 2007) The U. S. housing market overall may be suffering from the doldrums, but wealthy home buyers continue to invest in homes at the very top of the market. Evidence of the strength of the luxury home segment was revealed by the late November with the sale of the Trinchera Ranch in Colorado for a record-setting $175 million. This sale breaks the U.S. residential sales record of $103 million set earlier this year in New York’s Hamptons.

By comparison, the most expensive property currently on the market in San Clemente is $6,700,000 (354 W Paseo De Cristobal), according to Sam Smith, a real estate professional with Beach Cities Luxury Homes. "This property is certainly more affordable than the $165 million home in Los Angles that is the priciest listing in America today," said Smith.

Sellers of the Colorado property were the heirs of the late Malcolm Forbes, who acquired control of the historic Trinchera ranch in 1969. The buyer is billionaire hedge fund manager Louis Moore Bacon, who appears as number 286 on the Forbes list of the wealthiest Americans. Trinchera is the largest ranch in Colorado and its 171,400 acres contain five residences and a Western style lodge with 16 bedrooms.

Although the Colorado sale set a U.S. sales record, it fell short of the world record residential purchase, also set this year, with Sheikh Hamad of Qatar’s acquisition of a penthouse condominium in London for £100 million - equivalent to about $200 million at the time of the sale.
"Although the vast Colorado ranch, the ocean front lot in the Hamptons, and the London penthouse condominium are not apples-to-apples comparisons, they are each indicative of the health of the very top of the world’s luxury home market," said Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing, an international organization which tracks the luxury home market and trains luxury real estate agents.

"These sales illustrate the fact that there are more rich households than ever before and the world’s wealthiest have shifted more of their investment dollars out of alternative investments like commodities and into multiple residences. Based on this year’s World Wealth Report from Merrill Lynch and CapGemini, the world’s über rich have invested 12% of their total portfolios in homes other than a primary residence," said Moore-Moore. "In short, there is more money than ever competing for homes at the very top of the market. The luxury residential market is the good news story in real estate."

Sam Smith, a member of The Institute for Luxury Home Marketing, agrees. "In most markets across the country, the very top of the market remains healthy – luxury is the ‘sweet spot’ in real estate." Photo & Virtual Tour courtesy of First Team Real Estate