SOMETHING YOU MAY WANT TO KNOW ABOUT… THE STORM AFTER THE CALM

According to Bain & Co, luxury goods including designer clothes, leather goods, watches, jewelry and such were predicted to have a 10% increase in sales in 2010, reported in a study commissioned by Italy’s Fondazione Altagamma association of high-end producers.  Sales had declined by 8% in 2009. 

So far US sales of high-end items are up 12% with wardrobe replenishment after a year of careful holding back, Asians up 22% and Europeans spending 6% more for luxury items.  With the holiday season still ahead, Bain predicts a 9-11% growth during that period, so it’s time to open your wallets folks, and keep the stores in business.

Powering the spending are the Chinese with sales growing 30%. Chinese tourists are traveling the world en masse and spending as they go.  The study reports that larger brands are faring better than smaller ones, which may foretell the possibilities of mergers or absorptions of small companies, and menswear is growing faster than women’s wear… amazing?  Our men are browsing the internet for their favorite brands and buying online.

Leather goods purchases had held up and are expected to grow by 16%.

May as well get in on the buying binge now as, due to the likely continuing lowering of the dollar against the euro, growth is predicted to head down 3-5% in 2011.

A TURN FOR THE BETTER

National Association of Home Builders’ director of economic services says, “For the first time since World War II, I think [foreign] people are more optimistic about the US housing market than Americans.”  

Wall St Journal reports that the successful Sekisui House Ltd, a very large home builder and developer in Japan, is seeking to enter the US housing market and has teamed up with Newland Real Estate Group LLC of San Diego to acquire nearly 500 acres outside Houston which could house more than 1 200 homes.  Local brokers said the price was most likely over $10MM.  

It is anticipated that it will take three years to plot the development and get the project through the approvals process.  

Foreigners are not afraid of the US market as evidenced by the fact that 262 of the a Miami luxury condo’s 372 units have sold and almost 90% of the buyers are foreigners, all paying cash.  It includes a 28,000 sq ft spa and infinity pool on Biscayne Bay.  Units that once sold for up to $670/sq ft now average $319. Hotel-like service is offered, condos are glamorously appointed, great water views abound, daily housekeeping included and a celebrity chef offers room service.  It appears that foreign investors are buying real estate rather than investing in the US stock market, planning to rent out properties and sell when the economy turns around.  It is reported that 80% of all current Miami condo sales are with foreigners.  A property management cottage industry has sprung up across the US to accommodate these foreign buyers.

Locally, The Related Group has held many seminars, e.g. at Robb & Stucky in Boca and at the Boca Marriott, in the past few weeks showcasing their Ft Myers condo complex they purchased at a distress sale and are now offering at very low prices.  Seminars are also being held for condo complexes in foreign cities, and it is reported that buyers are astonished at the values, wondering if they are too good to be true.  They ARE true.

If you would like more information on any of these complexes or similar properties, contact Marilyn Jacobs, Luxury Home Specialist at 561-302-3388.

ZILLOW INDICATES WE HIT BOTTOM AND PRICES ARE SLOWLY RISING...

ROBB & STUCKY’S STAGING TO SELL 

CAN ALSO GIVE YOU RE-DO IDEAS 

IF YOU ARE NOT SELLING!

Seminar to be held on 10/28/2010 at 2 pm at Robb & Stucky in Mizner Park, Boca Raton, upstairs in the Community Room.   

Get tips on how to “prep” your home for a faster sale to make it stand out from others on the market.  Or, if you are not selling, how about ideas to spruce up your home like the experts would do!   

Before or after the seminar take a look through their fabulous furniture and accessory items… just one new beautiful piece can update and enhance the look of your home.