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CONTACT: Jennifer Kirby, 651-785-3400, Jennifer@theLuxuryAgent.com
$175 million sale sets new U.S. residential sales record
Most expensive property for sale in the Twin Cities: ($ 53.5 Million)
(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 in 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 the Twin Cities is $53.5 Million, according to Jennifer Kirby, a real estate professional with Exit Realty Eden Prairie. “This property is certainly more affordable than the $165 million home in Los Angles that is the priciest listing in America today,” said Kirby.
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.”
Kirby, 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.”
$58 Million New Jersey Mansion
Ranks as Year’s Top US Home Sale
$125 million world and $70 million US home sale records still unbroken
(January 10, 2007 – Minneapolis, MN) From New York City to Malibu and Palm Beach, the 2006 US real estate market boasted at least ten buyers willing to pay $28 million or more for high-end residences.
Topping the year’s list of most expensive homes sold in the US was a 63-acre estate with a 10,000 sq. ft. mansion just five miles from Manhattan in Alpine, NJ. Advanced Photonix CEO Richard Kurtz bought the English-style residence with guest cottages, pool and tennis courts from Henry Clay Frick II for $58 million, a price substantially below last year’s record-setting $70 million sale of financier Ron Perelman’s Palm Beach Oceanfront estate.
Neither sale comes close to the standing world record, a $125 million London mansion sold in 2004 to steel magnate Lakshmi Mittal, who ranked number five on this year’s Forbes list of billionaires, with an estimated net worth of $23.5 billion. .
“Strong corporate profits, good news on Wall Street, and a global commodities boom helped grow fortunes and sparked a surge of demand for trophy homes in 2006,” said Jennifer Kirby, local Real Estate Agent with Exit Realty Eden Prairie. “Final numbers aren’t in, but estimates are that the US’s 2006 sales of home priced at $5 million and above were up about 11% over 2005.
“Record Wall Street bonuses will jump-start 2007 luxury sales in New York,” predicted Kirby, “and, we’ll see spillover into other markets as well.”
Fortunes did grow in 2006 as demonstrated by the 18% growth in the number of the world’s billionaires, a list which now includes 793 names. At least five current sellers of luxury homes are hoping these uber-rich billionaires will step up to pay $100 million or more for homes in 2007. The priciest home for sale in the world -- Updown Court in Windlesham, England (near Windsor Castle) -- has a whopping price tag of $139 million. This spec-built home has 103 rooms, five pools, and a heated marble driveway.
Rounding out the list of $100 million dollar plus homes currently on the market, a Saudi Prince’s Aspen, Colorado retreat is listed at $135 million. Donald Trump is offering a “decorator-ready” Palm Beach, Florida property for $125 million. Those fancying a waterfront home in Istanbul, Turkey on the Bosporus Sea will find a $100 million home available there. Another waterfront option is a $100 million estate with lovely views of Lake Tahoe.
“Fabulous homes are just one example of the luxury goods and services which are in demand,” said Kirby, who specializes in Luxury Homes for the Twin Cities area. “This fall, Willem Kooning’s painting, ‘Woman III’ sold for a record $142.5 million, auction houses set art sales records, and yachts and private jet makers have waiting lists. Around the world, from Russia to Great Britain, there is a super rich group with wants, needs and the wealth to satisfy those desires.”
Jennifer Kirby is a Luxury Home specialist for the Minneapolis/ Twin Cities areas in Minnesota, including Waterfront properties and Historic Homes. She is also a licensed real estate agent in Florida and sells waterfront homes and condominiums in Northwest Florida. For more information on Minnesota or Florida real estate, please contact Jennifer at
651-785-3400, or visit www.FineHomesofMinneapolis.com, www.ListedinGulfBreeze.com, or her Real Estate blogs, http://minneapolisluxuryrealestate.blogspot.com or http://minneapolisrealestateblog.blogspot.com.
Three Mansions Simply Won’t Do: Survey
October 24, 2006 (released by RISMedia)
RISMEDIA, October 25, 2006—In its latest consumer-trend study, Architectural Digest has united with Sotheby's International Realty Affiliates, Inc. to find that affluent homeowners are planning to acquire additional residences in the near future. The study, "Seeking a Luxury Lifestyle," discovers that one in three Architectural Digest subscribers (36%) intend to acquire a secondary/additional home in the next two years. The study further reveals:
Of those Architectural Digest subscribers who already own three or more homes, 49% percent plan to acquire an additional home within two years;
Of those who already own a second home, 35% plan to acquire a third home within two years; and
In an indication that young affluent consumers are in the market for second homes, 44% of those under age 45 stated that they may acquire a second home in the near future.
Although geography is the primary driver when it comes to searching for a secondary residence, lifestyle amenities are becoming increasingly critical. Approximately one in three (32%) of the Architectural Digest subscribers measured know the characteristics and amenities they desire and would search in a number of geographic locations to find the home that matches what they want, rather than looking purely by location.
Subscribers with household incomes under $400,000 (38%) are more likely than their wealthier counterparts to indicate they would search in a number of locations to find the house that meets their amenity checklist.
The study finds that waterfront property (75%) is the most sought-after amenity when buying a secondary residence. Surprisingly, gourmet kitchens (10%) and swimming pool (5%) were among the least significant amenities:
Oceanfront/waterfront: 75%
On/near golf courses: 48%
Near aquatic activities: 45%
In-home fitness center: 34%
Media room/home theater: 32%
On/near ski slopes: 28%
Wine cellar: 18%
Gourmet/large kitchen: 10%
Large backyard: 5%
Pool: 5%
Regional differences were found mostly among respondents from New York and California. Some differences of note from the study:
- New York metro area subscribers are most drawn to waterfront/oceanfront property, while Californians found this of less interest;
- Californians tend to be less interested in golf courses than other subscribers, and more drawn to in-home fitness centers;
- And New York metro area subscribers are least interested in ski slopes, while Californians are most likely to search for proximity to the slopes.
"Architectural Digest readers seek a lifestyle full of life's indulgences and luxuries," said Amy Churgin, vice president and publisher, Architectural Digest. "From this research, we confirm that the homes of our readers, complete with sought-after amenities, such as media rooms and wine cellars, reflect their passions and personal style."
Michael R. Good, president & CEO of Sotheby's International Realty Affiliates, Inc., explained, "The survey, 'Seeking a Luxury Lifestyle,' provides Sotheby's International Realty brokers and the entire marketplace with invaluable insight into the latest trends in real estate. Home amenities play an increasingly important role in home purchasing, which is why we specifically designed sothebysrealty.com to ensure that clients can search for homes based upon these unique preferences."
Architectural Digest magazine commissioned Global Strategy Group, a leading strategic research and communications firm specializing in identifying the underlying factors that influence consumer and voter attitudes and behavior, to conduct the "Seeking a Luxury Lifestyle" study.
Minneapolis Luxury Homes Packed with Amenities
His-and-her Rooms, Outdoor Water Features, and Multiple Kitchens
Today’s Minneapolis luxury homes offer features that luxury homeowners of a decade ago never even dreamed about. If you’re thinking about moving up, here are some of the comforts you might expect to find at the top of the housing food chain, as reported by The Institute for Luxury Home Marketing.
One for Him, One for Her
His-and-her sinks in the bathroom have morphed into his-and-her bathrooms. Separate closets, dual dressing rooms, separate garages (she’s near the kitchen), and his-and-her living areas are also increasingly common features in million dollar properties. In short, gender-specific rooms are all the rage with affluent homeowners. She may enjoy a yoga room while he has a cigar room/gentleman’s retreat. He spends time on his backyard putting green while she entertains friends in her sitting/reading room. His closet boasts quality paneling while hers has climate controlled fur storage and a ball gown section. Alas, they may have to share the suitcase/packing room and the media room. And, of course, they each have a home office with broadband Internet access. In addition, luxury homebuyers in the Twin Cities real estate market are asking for a room where kids can do homework, surf the web, and play computer games.
Four Kitchens, Two Utility Rooms?
Another trend in upscale Minneapolis homes is multiple kitchens. In addition to a main kitchen, top of the line homes often have special catering kitchens and mini-master bedroom or guest room kitchens. In climates conducive to outside living, complete outdoor kitchens (most likely his) are gaining popularity. These cooking spaces may include everything from refrigerators, ovens, and icemakers to (of course) an elaborate grill.
The main kitchen has also been updated. Granite countertops still top the desirability list but durable quartz product countertops are increasingly popular. Corian, concrete, and stainless steel counter tops remain on some buyers’ preference lists. Freestanding furniture-style cabinetry (on legs) teamed with metallic finish appliances highlight up-to-date kitchens.
For those who remember harvest gold and avocado green appliances, guess what? Colored appliances are back. Today’s colors range from red to purple, green, and tan (even Sears Kenmore offers colored appliances). Major appliances have also become super-sized. One appliance maker is offering a 41-cubic foot refrigerator and another sells a range that will bake 144 cookies at once. TV refrigerators are also popping up in luxe kitchens. Vegetable sinks are a must in many kitchens. Translucent glass tiles, in lieu of ceramic tiles, complete cutting-edge kitchen decor.
Many buyers want a second utility room in or near the master bedroom closet.
The butler’s panty is another popular feature in upscale Minnetonka homes. Designed as a staging area between the kitchen and formal dining room, this special purpose room offers storage for crystal, china, silver and other items. If there’s no wine cellar, the butler’s pantry will generally have temperature controlled storage for red and white wine. If there is a wine cellar, it often includes a dining/wine tasting area.
Showers are Hot
The stress relief or spa bath is also an important amenity in luxury properties. Roomy, multiple-head steam or rain showers are gaining popularity while the newest bathtubs are bright with LED lights. These chromotherapy tubs let you change light color according to your mood. Luminous glass tiles in a variety of colors are also showing up in the bath, so is the “fixture as furniture” look. The addition of upholstered furniture -- from chaise lounges to recliners -- is making bathrooms more like home spas. Vessel sinks are waning in popularity and furniture fixtures (sinks inset into pieces of furniture) are adding bathroom pizzazz.
What else might you expect to find in your new million plus property? More square footage. Million dollar homes in the Minneapolis area real estate market most likely measure-in at least 4,000 square feet and pricier properties on the market today may be 45,000 square feet or more in the main house. Guest cottages, pool houses, courtyards, porches, and elevators, are common features in luxury properties for sale across the country.
From Cocooning to Blooming
Don’t forget the out-of-doors. Affluent homeowners in Minnetonka and Wayzata have given up cocooning, stepped outside and rediscovered gardening. Multiple gardens, potting sheds, garden accessories and garden art are more important than ever, as illustrated by the growing sales of garden catalog companies and garden emporiums. Outdoor water features including fountains and waterfalls are making a splashy comeback.
Complete outdoor rooms with weather proof furnishings that look like they belong indoors are new outdoor amenities, as are modular sports courts for tennis, basketball, or other outdoor activities. Glass walls which retract to open up rooms to the out-of-doors are seen in “good weather” markets and glass which turns opaque with the flip of an electric switch gives you views or privacy on demand.
Luxury homes are also blooming with the latest colors. Did you know that representatives of home product companies from wall paints to linens meet regularly to agree on the next color palette? That’s why disparate products from differing manufacturers are color coordinated. Today’s featured colors include rich reds, innocent pinks, soft greens and bright blues, plus lots of lustrous white. A full range of purples, oranges (from apricot to bright orange) plus browns and golds are gaining in popularity, too. You’ll also still see lots of metallic and mirrored finishes. Wallpaper and chintz fabrics are even staging a bit of a comeback, at least in period homes.
No matter what lifestyle features or amenities you are looking for in your next home, I’d be delighted to provide you with information on what’s available in today’s market, especially if you are looking for Minneapolis real estate, homes for sale in Minnetonka and Wayzata, or historic homes in the St. Paul area. Please contact me if I can be of assistance in your home search (or home sale).
July 9, 2006
Minneapolis Luxury Homes Get Boost From National Exposure
Jennifer Kirby is Among First to Participate in National Advertising Program for Luxury Home Specialists
Jennifer Kirby, a Minneapolis real estate agent with Exit Team Realty, is among the first group of real estate agents invited to participate in a national advertising program between The Wall Street Journal, Barron’s magazine, and The Institute for Luxury Home Marketing.
“This is a great opportunity for me and my clients,” says Kirby. “Participating in this program allows me to reach clients across the nation who may be looking to the Twin Cities for their next upper-tier property.”
A recent report by The Harvard University Joint Center for Housing Studies shows that the number of “million-dollar” homes has grown dramatically faster than the total number of homes in the U.S. This increase in upper-tier properties has led to Minneapolis seeing an increase in the number of new and inexperienced real estate agents targeting the upscale market segment.
"The Twin Cities has a lot to offer affluent consumers,” Jennifer continued. “Recognition by The Institute for Luxury Home Marketing assures those potential buyers of my unique training and specialized knowledge, and opens new communication networks that will enhance my ability to serve my clients well.”
Jennifer Kirby’s national exposure comes at the right time. According to Carl Steidtmann, chief economist for Deloitte Research, a leading professional financial services firm, “many consumers postponed buying new homes until interest rates reached the bottom. With interest rates on the rise, they have decided to get off the dime to avoid higher rates.” Steidtmann’s comments were reinforced by a Wall Street Journal article in mid-May, which reported that multi-million dollar homes “are starting to sell briskly.”
The Institute for Luxury Home Marketing decided to feature some of its members in The Wall Street Journal and Barron’s financial weekly because of the publications’ strong readership profiles: Their readers have an average household income of over $200,000 and have an average household net worth of over $2 million. These statistics translate into a wealth of opportunities for Kirby to bring both local and national affluent consumers who are looking to either buy or upgrade in the Minneapolis market.
About The Institute for Luxury Home Marketing
The Institute for Luxury Home Marketing exists to help real estate professionals around the world provide high quality service to buyers and sellers of luxury properties. Institute members have completed special training to build expertise in the marketing of upscale homes and estates and those who meet performance standards may earn the prestigious Certified Luxury Home Marketing Specialist designation. Information and an international membership list can be found at www.CLHMS.org. Members are also listed on the Wall Street Journal’s RealEstateJournal.com website.
