san diego Archives - Luxury Home Digest

Luxury Home Sales Hit by New Tax Laws?

Roberta Murphy Thompson — Thu, 07 Jun 2018 21:48:19 +0000

Realtors in California were groaning when the new tax laws hit this year. Luxury home sales were sure to crash and burn.

You see, the new tax code puts a limit on how much one can deduct in state and local property taxes–as well as income or sales tax–up to a measly total of $10,000. So when new tax laws went into effect, high profile experts were predicting an ugly impact on luxury home sales. Here are just a few of the predictions:

Capital Economics:

“The impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.”

**Mark Zandi of Moody’s Analytics:**

“The impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.”

The National Association of Realtors (NAR) predicted price declines in “high cost, higher tax areas” because of the tax changes. They forecasted a depreciation of 6.2% in New Jersey and 4.8% in Washington D.C. and New York. California luxury home sales would fare no better.

So, what really happened?

It appears the luxury home market may have been written off a little too soon. Of course, these are national figures, where in some locales a true luxury home can be had for less than 500,000. And in coastal California, you might find luxury homes starting at $2 million. Real estate pricing is always local. Regardless, here we present some interesting national figures:

1. According to NAR’s latest Existing Home Sales Report, here is the percent change in sales from last year:

Homes sales between $500,000 – $750,000 are up 11.9%
Homes sales between $750,000 – $1M are up 16.8%
Homes sales over $1,000,000 are up 26.7%

2. In a report from Trulia, it was revealed that searches for “premium” homes as a percentage of all searches increased from 38.4% in the fourth quarter of 2017 to 41.4% in the first quarter of 2018.

3. And according to an article from Bloomberg:

“Median home values nationally rose 8 percent in March compared with a year earlier, while neighborhoods of San Francisco and San Jose, California, have increased more than 25 percent.

Prices in affluent areas in Delaware and New York, such as the Hamptons, also surged more than 20 percent.”

And finally….

Aaron Terrazas, Zillow’s Senior Economist, probably summed up the luxury real estate market best:

“We are seeing the opposite of what was expected. We have certainly not seen the doomsday predictions play out.”

And isn’t that kind of a truism in life? When everything seems certain, life often delivers the unexpected. And so it is with tax laws.

It’s a Buyers Market for Luxury Homes

Roberta Murphy Thompson — Mon, 19 Mar 2018 22:45:00 +0000

Now may be the time to grab one of those luxury homes you’ve been watching.

The price of luxury homes varies from market to market. In some, it could be $700,000 and others over $2 million.

In the San Diego luxury home market, we see luxury homes priced north of $2 million languishing on the market a little longer than ones priced below that number. On the other hand, that lofty number could be a bargain in the Silicon Valley and San Francisco’s Bay area.

So if your house no longer fits your needs and you are planning on buying a luxury home, now could be a perfect time to do so. Recently, the Institute for Luxury Home Marketing released its Luxury Market Report which showed that in today’s premium and luxury home market, buyers are in control.

And that may be one of the few real estate niches where buyers are in command.

The inventory of homes for sale in the luxury market far exceeds the number of people searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer–or can be found at a discount.

Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call their house their new home.

The sale of your starter or trade-up house will help you come up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.

But not all who are buying luxury homes have a property to sell first.

A recent Bloomberg article gave some insight into what many millennials are choosing to do:

“A new generation of affluent homebuyers powered by a surge in inherited wealth is driving the luxury-home market, demanding larger spaces and fancier finishes, according to a report heralding ‘the rise of the new aristocracy.’”

Bottom Line

The best time to sell anything is when demand is high, and supply is low. (Remember the old adage about buying fur coats in the summer?) If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and make your dreams come true.

If you are in the San Diego area and want to discuss your selling or buying options, give Roberta Murphy a call at 760-402-9101 or email roberta@sandiegopreviews.com And if you are out of the area, I can help find a luxury real estate agent who is intimately familiar with luxury homes in your desired market.

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One Luxurious Treehouse

Roberta Murphy Thompson — Sat, 28 Mar 2015 23:49:13 +0000

by Roberta Murphy

I’ve loved the idea of a treehouse since a young kid. Never had one, but imagined how I might climb up to my hideaway and maybe stay there forever.

Am still fascinated with ideas of small homes and a treehouse, but not quite ready to actually live in such a primitive abode. Until now.

Check out this Italian treehouse, appropriately called 25 Verde–and discovered on Australia’s Outdoor Design.

And though I wonder what the building might look like 25 years from now, it is currently a very interesting and green experiment in living. Supported by industrial steel girders, the curved building supports 150 trees which not only help moderate apartment temperatures, but also filter sunlight on hot days and provide insulation on the cooler ones. The trees and greenery are supported and diversified with very large planters situated along terraces, walls and a green-roofed courtyard.

The building’s architect estimates that the 150 trees produce a whopping 150,000 liters of oxygen each hour and simultaneously absorb 200,000 liters of carbon dioxide each hour at night.

This ultra-green building also uses geithermal energy for heating and cooling and rainwater (scarce in San Diego) is recycled to water the greenery.

Would love lto see this building (and more) replicated in San Diego!

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The Luxury of a $500,000 Closet

Roberta Murphy Thompson — Sat, 09 Feb 2013 21:07:53 +0000

Luxury Closet by Robeson Design

by Roberta Murphy

We’ve written about luxury closets in the past, but these days some are spending up to $500,000 for a luxe master closet that might include a champagne refrigerator, sound system, glass-enclosed display cabinets, wet bar or even a breakfast area.

Gone are the simpler days of a luxurious dressing room. The master closet area has become a destination room.

The Wall Street Journal reported yesterday on four luxurious closet areas, ranging in size from a modest 600 square feet to a dressing suite with 1300 square feet. What are the trends with luxury closets?

Luxury home owners today want closets that invite lounging–with prized clothing and accessories on display behind lighted display cabinets. Materials used may include exotic woods, crystal chandeliers and windows that allow for natural lighting. These dressing lounges might also have a sound system, television, jewelry vaults, exercise equipment and even an office nook. Clothing is easily compartmentalized, with large and organized spaces for shoes, hanging clothes, accessory storage and vaults for jewelry and valuables.

There will also likely be a secure safe of some sort for storage of jewelry and valuables. And frequently, these safes are cleverly disguised. Another security feature might be a security camera to protect against theft and pilferage.

These master dressing areas have become trophy rooms of sorts–and are a key selling feature in luxury homes we show in our own San Diego real estate practice. Frequently, properties are crossed off luxury home buyers’ lists if a master closet is not large enough or appointed to their standards. Rejection might also occur if there are not equally and finely appointed dual closets for couples.

What are your demands when it comes to closets? Please share your list or photos!

For additional reading:

The Luxurious Closet
The Luxury Pantry

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The Luxury Pantry

Roberta Murphy Thompson — Wed, 16 Jan 2013 22:10:58 +0000

by Roberta Murphy

When showing homes to buyers in San Diego, one of the first doors that is opened following the front door is…the pantry door.

Sometimes the “pantry” is nothing more than a large cabinet that may (or may not) have revolving and pull-out shelves. Hopefully, and regardless of size, the boxes of cereal, canned goods and other kitchen staples are stacked in an orderly fashion.

But the ultimate pantry might look like the one pictured to the left, courtesy of The Closet Works. I love the revolving shelves, the orderliness and spaciousness of this kitchen space. It is also light and bright–and easy to see what foods and supplies are on hand.

Small Pantry Housewife, Containing Necessary To Cook

On the other hand, if you are on a budget or have a smaller pantry you might want to try imaginative lighting, glass jars for storing foods, and possibly a plant or two. With good lighting, you might also have a small herb garden. (See photo at right). You want potential buyers to have a WOW moment when they open that door. And in the meantime, it will be something you can enjoy.

Looking for Pantry Ideas?

If at all possible, do everything you can to avoid having a messy or boring pantry. Make sure it is well lit and visit sites like Houzz or Pinterest to glean some creative ideas. This would also be a good time to prune out expired or items you’ll not be using in the next six months. If there is room, you might also want to add a small and colorful area rug.

Another favorite for buyers are frosted glass doors leading into the pantry. If that isn’t in the plan, make sure the door and all shelves are clean and freshly painted if needed.

Do you have any ideas you might share?

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Want to Live in a Most Expensive City?

Roberta Murphy Thompson — Thu, 08 Nov 2012 04:01:12 +0000

Luxury Apartment

by Roberta Murphy

Ah… the luxury of being able to comfortably live in one of the most expensive cities in the world (so why not divide one’s time between them–just for bragging rights?:-)

CNBC just released their 10 most expensive cities in the world to live where they included 200 factors such as costs for a 2-bedroom luxury apartment, utilities, transportation, food, clothing, entertainment and so on.

It might come as no surprise that three of the top 10 are in Japan, two are in Switzerland and two in Africa.

So, without boring our readers with details, we cut to the chase, offer the cities in descending order and include the expected monthly rent for a luxury 2-bedroom apartment plus cost of a fast meal and a cup of coffee:

Tokyo, Japan where rent runs $4848, a cup of coffee $8.29 and fast-food meal $8.29
Luanda, Angola where monthly rent runs $6500, a cup of coffee a bargain at $3.90 and a fast food meal for around $19.94
Osaka, Japan offers the luxury apartment at $3062, a cup of coffee at $7.02 and the fast-food meal at $8.29.
Moscow, Russia has their luxury apartment at $4200, with cup of coffee at $8.37 and the fast-food meal at $6.70. (And how about an international newspaper at $9.78?)
Geneva, Switzerland presents the luxury apartment at $4818, with cup of coffee at $6.57 and the fast food meal at a whopping $12.59.
Zurich, Switzerland (compare to Geneva) offers a comparable apartment at $3614, a cup of coffee at $6.02, and a fast food meal at $12.59.
Singpore might offer luxury digs at $3588, a cup of coffee for $5.18 and a fast food meal for $5.66
N’Djamena, Chad …just doesn’t seem to have much in the way of luxury 2-bedroom apartments for expatriates. But should you find a place to live, you’ll pay $3.32 for a cup of coffee and an outrageous sum of $25.18 for a fast-food meal. Personal safety and OIL are big issues here.
Hong Kong offers a very pricey (but comparable) apartment for $7092 per month, the cup of coffee at $6.83–with a bargain fast food meal at $3.54.
Nagoya, Japan has the bargain luxury apartment at $2551 per month, the cup of coffee at $6.38 and the fast food meal at $8.42

Sitting in San Diego, I feel as if we are living in paradise at bargain basement prices.

Another cup of coffee, please?

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The Luxury of…Privacy

Roberta Murphy Thompson — Wed, 31 Oct 2012 03:41:52 +0000

A Desire for Privacy

by Roberta Murphy

Years ago, when we put our first home on the market, I insisted that the Realtor put NO SIGN in our yard.

I did not want neighbors to know that we were selling or cause any disruption in our neighborhood. Our agent tried to explain the importance of a sign, but I was the incalcitrant client–and we ended up selling the home with NO SIGN. This of course, was before the internet and Realtor.com, Zillow, Trulia and all the other listing aggregators. And in those days, the wish for privacy was something that was understood by almost all.

At that time, I mostly wanted to protect our privacy–and didn’t want to have to answer questions or be the subject of neighborhood gossip.

Fast forward to 2012 and grocery shoppers have not only to contend with the revelations of rags in the checkout lines, they can also hop onto to the Trulia or Zillow sites and see which of their neighbors have fallen behind on house payments and could be facing foreclosure. Or, equally likely (and rarely assumed by the real estate novice), they may simply be trying to negotiate a loan modification with their lender WHO MAY HAVE ADVISED THEM THEY NEED TO BE DELINQUENT IN THEIR MORTGAGE PAYMENTS before they will be considered for a modification in the terms of their loan. Equally possible, the family may simply have fallen on hard times and are suffering enough embarrassment and pain without Zillow and Trulia posting up their delinquent mortgage status for all to see. Moreover, their home may already be listed as a short sale with their Realtor.

It seems these national aggregator sites who list homes for sale, provide market advice and offer slick mapping services feel this information might bring more eyeballs to their sites. Real estate agents already pay hefty sums to be the advertised “representative” of local zip codes. In further monetizing their sites, will these same agents be enticed to be the “local expert” for pending foreclosures in their purchased zip codes?

It’s not the business model that bothers me; rather, it is the brazen publication and monetization of personal pain. If parents discuss their neighbor’s published and pending foreclosure at the dinner table, is there not a chance that this juicy tidbit becomes an embarrassing morsel of school gossip the next day?

These commercial listing aggregators might try to convince real estate agents that they are offering a real opportunity to agents: They will now know who might be interesting in listing their home, and the more passive agents can $ign on to passively be the face to call when times get tough.

What’s next?

Let’s see, who else might be interested in listing their home when:

1. A loved one dies
2. Divorce proceedings are filed.
3. Someone is arrested (might need to sell to pay attorneys and bail?)
4. Birth announcement (need a home–or a bigger one?)

These are just a few examples of times when privacy might be appreciated and strongly desired. And of course, it is all public knowledge if one searches hard enough–and that is one of the arguments proffered by those who commercialize this information. And from this Realtor’s point of view, it’s pretty convenient information to have–if I’m inclined to pester people in their times of pain–or deep personal pride.

I guess one of the things I liked so long ago when I refused a lawn sign was the sense of control I had over my privacy. These days, a listed home wouldn’t stand a chance of being so obscured from looky loos and prying eyes. The listing would appear not only on hundreds or thousands of Realtor websites, but would also likely appear on Realtor.com, Zillow, Trulia, Movoto, Redfin and innumerable other listing aggregators and national sites.

At a minimum, these sites should allow the homeowner the opportunity to opt out of publication–especially when the information published could cause personal pain and harm.

In exchange for this, as a San Diego Realtor, I would be gladly willing to forego any gain I might achieve from this information–and optimistically believe other real estate professionals would feel the same.

There was a time in our society when privacy was an assumed and granted given. These days, it appears to be a luxury afforded a privileged few.

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Venetian Plaster Transformation

Roberta Murphy — Tue, 12 Jan 2010 00:31:40 +0000

by Roberta Murphy

The Elegance of Venetian Plaster

Venetian Plaster by Greg Sieminski

When first entering this newer San Diego luxury home, we were amazed by its wall and ceiling finishes. Walking slowly from room to room, one can run fingers over the cool burnished walls and the gray stone door arches. The touch is smooth and cool. Even the ceilings and dome gave the impression that we had indeed been transported to a Venetian villa.
Had we not known the artisan responsible for this masterpiece, we would never have guessed an underlying truth: These walls were nothing more than standard drywall that had been transformed by a clever Polish home painter and artist who specializes in exquisite surface finishes.

Greg Sieminski explains that Europeans have been creating beautiful walls for centuries utilizing limestone plasters softly colored with natural elements. He
studied these walls in Mediterranean countries, and wondered how the rich, aged patina could be duplicated in fine San Diego homes. It took several years, but Greg was able to perfect his replications of fine Venetian plaster to the delight and amazement of his clients.

So just how is Venetian plaster made? Greg explained that the 1300 year-old process starts with the selection of special limestone from Italian quarries and rivers. The limestone is then fired in a large and very hot kiln, which causes chemical changes within the limestone itself. The result? The super-heated stones turn to putty when placed in water. The painter goes on to describe how this putty is wet-seasoned for up to a year before being processed as a finishing plaster.

The end result, says Greg, is a finely milled limestone putty that is even finer than face powder. This cultivated material can be further embellished with finely-ground marble, which yields an ancient building material that can be burnished to a low sheen or rubbed to a high polish. Additionally, he will occasionally add granular material so that he can recreate stone finishes.

Venetian plaster, he explains, is not faux painting, as hobbyists commonly refer to this style of painting. The product is not paint. It is an old finishing technique that works well in contemporary homes. He adds that Venetian plaster can be used outdoors as well, with few limitations.

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Luxury Above La Costa

Roberta Murphy — Mon, 28 Dec 2009 18:47:27 +0000

by Roberta Murphy

At San Diego Previews, we deal with a number of people who are relocating to the San Diego area. They may be from from the East Coast, the desert, Bay area, Midwest or Europe, but all have pretty specific ideas about the lifestyle they anticipate in sunny Southern California.

Many of these seekers are seasoned and affluent home buyers–ones who can be pretty specific about the features they want in their next home. Their demands might very well include:

A formal and separate entry with natural stone or wood flooring.
An office off that lovely entry
Formal dining room with outside patio for al fresco meals.
In Southern California, a great room with fireplace off the spacious and well-equipped kitchen. Great for wine and cheese soirees, family fun and casual entertaining.
At least one bedroom with full bath on ground level.
Spacious master suite with balcony for sunset wine sipping–and spa bath with jetted tub. Huge closet also a plus!
Outdoor kitchen for year-round entertaining is a must.
Some want pools and some don’t, but most would like a private rear yard large enough to accommodate one.

We have recently listed a newer 5 bedroom, 4.5-bath home at 7289 Calle Conifera in Carlsbad, which offers all these features and more–including a butler’s pantry, large laundry room, 3 fireplaces, Brazilian cherry and polished travertine flooring, granite surfaces, 3-car garage, 4225 square feet, and numerous other custom upgrades. This La Costa Oaks listing is also in the highly desired San Dieguito school district, has reasonable taxes– and a price tag of just $1,150,000.

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Even Luxury Home Owners can be Victims of Fraud

Roberta Murphy — Sun, 05 Apr 2009 15:41:49 +0000

by Roberta Murphy

It’s a sad fact of life, but unscrupulous vultures are always ready to pick at the flesh of the most financially distressed–which more frequently these days includes the owners of luxury real estate.

Over on our San Diego real estate blog we report that San Diego County District Attorney Bonnie Dumanis is asking San Diego Realtors to help her track down and prosecute real estate fraudsters operating in our county.

We have written before about the foreclosure and loan modification scams that prey upon distressed San Diego home owners who are struggling to stay in their homes. The DA’s office is aggressively trying to warn homeowners to stay away from these San Diego real estate crooks and their fraudulent offers of mortgage and loan modification assistance–and is asking us, as San Diego Realtors, to report any suspicious activity.

All too often, unwitting and desperate home owners will pay an upfront fee to a person or company who promises to prevent foreclosure–or to modify existing mortgage loan terms. And all too often, people are paying for services they never receive–and might be better off with a do-it-yourself loan modification.

Click to continue reading….

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