It’s a wrap!

It’s official: 2021 is over and in spite of its many challenges, it was a terrific year for Beverly Hills real estate.

As anticipated, supply and demand continued to heat the market, and low inventory inspired buyers to move quickly and decisively. Sellers and buyers of estate properties—and their agents—found ways to work around social distancing issues and transactions were brisk and efficient.

As the year progressed with its tremendous activity, the Joyce Rey team demonstrated once again that knowledge, integrity, and flexibility are key. A record-breaking career of more than four decades has confirmed that philosophy—and we’ve made it part of our daily interaction with clients and with each other.

When it comes to record-breaking, my 2019 sale of the Chartwell Estate in Bel Air held the honor in California until the Warner Estate was sold in 2020. This year, Malibu took the prize with the $177 million sale of a Paradise Cove oceanfront compound. It was California’s highest single-family home sale ever, if still behind New York’s 220 Central Park South penthouse purchase in 2019 at $238 million—a record I’d love to break! Interestingly, in each of these recent California record sales, the price has gone up even as the acreage has gone down.

The other record that was broken in 2021 is a personal one. In my long career, I have never before put two properties into escrow on New Year’s Eve, but this year I ended 2021 on that high note!

I think an auspicious close to one year signals an extraordinary start to the next and I predict an amazing 2022 for the Westside luxury marketplace.

I look forward to hearing from you and I wish you a wonderful New Year!

The post Joyce Rey’s Beverly Hills Market Update: 2021 Year-End Highlights appeared first on Haute Residence by Haute Living.

Many Millenials believe that they will never be able to afford to buy a home. Do you agree? What advice do you have for Millenials and Gen Z homebuyers? 

Silvina Andrews - In the Bahamas, the real estate market is booming. Private sellers and developers are moving their inventory like never before. The Bahamas is beautifully positioned as a close neighbor to the east coast of the US and also has many direct flights to major cities all over the world. There are many incentives for residents choosing a permanent residence or second home in the Bahamas. I would advise prospective buyers to move quickly as inventory is barely keeping up with the demand.

Tim Fenton of Blue Zone Realty International, - The market in Costa Rica has never been hotter than it has been this year. In fact, our sales are nearly 4 times greater than the previous year. My advice to those looking to buy in Costa Rica is to get in touch with one of our award-winning agents today and provide them with your wish list. Do not wait for new listings to appear on the website, or it may be too late. With the list in hand, our agents will set alerts for new listings, and get in touch with you immediately with an overview of the property, and we can schedule a virtual visit for you from the comfort of your home. There has never been a better time to live your best life, in Costa Rica. 

Darlene Streit - It is a challenging time right now with low inventory, and with Millennials and Gen Z home buyers competing for the same smaller homes with new retirees who want to downsize. The demand is unprecedented, especially given that so many people are moving and also looking to buy. But the market is cyclical, and as we've seen with Covid, things can change unexpectedly. I would advise younger buyers to continue saving up their down payments and get pre-qualified so that they can move quickly when properties become available. With low mortgage rates, homeownership is still an excellent way to build wealth and is less expensive than renting in many cases. Also, now that so many people are able to work from home, Millennials and Gen Z home buyers have the advantage of relocating to smaller cities and towns, where there may be more affordable options. The landscape is changing, and today's smaller locales may become the next hot, upcoming place to live.

Daniel L. Maya - Yes 100%. I would say find 2 or 3 subdivisions that you want to move to and find the sub-divisions that have the highest turnover rate which may give you the biggest bargaining power. I would also say look for homes that have been in the market for a long time and try to sell if priced too high. Then use this data to sell if your realtor can use this as a good negotiating point.

Tom Day, Day Palazola Group - I have been a realtor for over 32 years and I have heard this many times. The market always seems to change to make it possible for young people to buy a home. I have experienced interest rates over 15% and we are not even close to that. Young people were still able to buy homes then and eventually refinance. Cutting out the new buyer market in the real estate and building industries would have an incredibly negative effect on our economy. We as Americans always seem to rise to new heights and I am sure that will happen again.

Amy Land-de Wilde - It was not as frequently that we saw Millennials and Gen-Zers purchasing property in US Virgin Islands who come from the states. However, lately with the increase of employers transitioning to remote working positions and closing their brick and mortar operations, we have seen a huge uptick in younger buyers setting their sights on the US Virgin Islands, specifically on St. Croix where the dollar goes further than on other Caribbean islands. What was once a dream that many believed was only available to second-home buyers or buyers heading into retirement, has become a possibility for younger generations who still need to work. Additionally, many individuals in these two generations are dabbling in investing from stocks to real estate, specifically vacation-rental properties, and what better place than St. Croix, in the US Virgin Islands!?

Combining their remote job positions with investing in vacation rentals in the US Virgin Islands, gives these Millennials and Gen-Zers the possibility to be nomadic while keeping a steady job with good income and making a profit or offsetting their expenses on a beautiful property in the Caribbean.

My advice, get started! Start looking, researching, and hiring a Realtor. It’s easier than you think to purchase a property and having a great Realtor is the key, especially if you are searching for a property out of state, or in our case, on an island! Since we are a US territory, we benefit from the low US interest rates and government programs such as VA and FHA on some properties, making the down payment little to none and making it easier and less costly to purchase.

Keep in mind that if you intend on purchasing a property as an investment you should budget for at least 25% down. Determine how you would like to finance your purchase and if you need to get a mortgage, then have your Realtor put you in contact with some local lenders. This should be one of the first steps along with hiring your Realtor so you know what steps you need to take beforehand to ensure you qualify and for how much so you can focus your search within your price bracket.

It starts with a dream, but it can be more than that! Give us a call!

Steve Nassar - No, I definitely don’t believe this to be true for Millennials or Gen Z, or for any other generations for that matter. I do understand the concern as they’ve seen home prices continue to rise throughout their lifetime – even more so with how rapidly they’ve increased in the last couple of years – but like with anything else, this is a constant ebb and flow. What goes up must come down again – and where that doesn’t take effect, there’s an all-too-often forgotten balance that comes from a comparable increase in salaries and income as they advance in their careers. For this reason and others, I see it as more of a fear of the unknown. My team and I sell hundreds of homes each year and help homebuyers (and sellers!) of all ages – there is truly no obstacle too great if one has the right level of determination.

My advice for our younger generations would be this: homebuying is no more out of reach for you than it has been for any generation that preceded you. Michael Jordan once said, “Some people want it to happen, some wish it would happen, others make it happen.” Work hard, save your money, set goals, and constantly work toward them. You’ll be living the dream of homeownership in due time.

Adam Betta, DiMaggio & Betta Group - The idea that the Millennial and GenZ demographic are being priced out of the housing market is a fallacy. It's the same idea that this demographic spends all their money at Starbucks. While housing prices have surged in the past few years that appreciation can be attributed to low inventory. One aspect to consider is the boomer demographic and the multiple residential properties they own. These homes will be a flood of inventory in the near future as they sell their primary residence, second and third homes, and investment properties. Millennial and GenZ potential homeowners need to consider how they can start to build wealth by buying real estate. There are low down-payment loans available, gift money from parents, and combining resources with other potential buyers. Like all buyers, they will need to consider size, price, and location. Maybe a smaller starter home or multi-unit building or a different location than where they currently reside. Find a qualified real estate agent who knows the market, be willing to make some improvements, and work your way up. Whether that means purchasing a small condominium or a small home, the goal is to just get into the market. 

Abigail Davis, Corcoran Reverie - 'Live who you are' is not restricted to any specific age group, and Millennials need to know! Being within this age group myself, it is beyond rewarding to assist these individuals in their home buying process. My best advice is to begin by speaking with Realtor® in your area. They will connect you with local lenders that can give you an idea of available loan options for you, what your budget/savings will need to look like, and prepare you for the process. Then, get pre-approved! Learn what homes you can fall in love with and get an idea of what you may want to put down on the home. Then re-evaluate your budget/savings, maybe this means less eating out so you can invest in your future but it is beyond worth it!

Elise Larrabure Girasole - Taking into consideration the cost of monthly rent and with interest rates still low the math makes sense to purchase a home.

We're definitely seeing this happening in NYC with the average monthly rental being around $5,000.00 and a shortage of rentals, Millenials have figured it out and are purchasing before inflation, and interest rates will most likely increase. So much nicer to establish roots and make your home your own "home sweet home".

Nick Salter, Salter Group - I think many people look at the price tags and make the assumption it's unattainable without exploring all of their options. In reality, housing is still very affordable for most Americans. This directly correlates with the drive in the increase of home prices. The National Association of Realtors affordability index takes three key metrics- home prices, mortgage rates, and wages- and boils them down into a single number. This number tells us if the "average joe" can afford a home. When this affordability number drops too low, it means the average American cannot afford to buy. That often forewarns a housing bust. Affordability has dipped from generational highs in the past few years. Forbes recently reported this number is still well above the 30-year average. Writing this as a millennial, I don't think it is going to be impossible for our age groups to afford to buy a home. If it is a goal of yours, get in touch with a professional who can assist with making a plan of action. Start saving and keep watch for changes in interest rates.

The post Haute Residence Experts Give Advice To The Next Generation Of Homeowners appeared first on Haute Residence by Haute Living.

"While 2020 was an incredible year in real estate even with a pandemic, I believe that 2021 will shatter all records for the simple fact that people’s lives and lifestyles have dramatically changed resulting in a whole new definition of what home means to a consumer." - Debra Johnston, Atlanta, GA.

"Demand for Asheville real estate will continue to be strong in 2021. With teleworking now occurring at record high levels, Asheville will draw people who seek: a high quality of life (nature abounds), & affordability (compared to other luxury markets). Over the course of time, upon asking buyers why they chose Asheville, the most common response has been “environmental escapees” - people wishing to avoid hurricanes, flash fires, harsh winters & hot summers. Asheville's weather offers 4 mild (and scenically beautiful) seasons." - Laura Livaudais, Asheville/Western North Carolina.

1207 Round Grove Court, Brentwood, Tennessee 37027 - Listed by Lisa Culp Taylor

Photo Credit: Reed Brown Photography

"After experiencing an incredibly strong third and fourth quarter real estate sales in 2020, I’m predicting an early spring 2021 market for Tennessee.  There are many things we can’t predict for the next year, however, the desire to live in an area with a great quality of life, change of seasons, no income tax and a vibrant and diverse jobs market is driving my prediction of an early spring market.  Instead of April and May launching this season, you’ll see homeowners, new and existing, begin the shift in the first quarter which is why we are helping our clients prep their home for sale now." Lisa Culp Taylor, Tennessee.

Read more expectations for 2021 from members of Haute Residence, including the areas of the Caribbean, South Florida, the west coast of Florida, Southern California and Northern California, the New York tri-state area, the Pacific Northwest, Texas, and Canada.

The post 2021 Expectations For The Luxury Real Estate Market appeared first on Haute Residence by Haute Living.

The Summit had already featured two other, separate panels with a “who’s who” in the real estate market: developers, and international brokers. The local brokers brought it home to a successful and informative talk.

Phil Gutman, Lourdes Alatriste, Crista Ryan, Christian Martinez, Sebastian Tettamanti, Maria Eugenia Alvarez Vitale, Steve Solomon

The panelists joined Moderator Alex Vidal, President of RelatedISG International Realty in a capacity-filled event space within the luxurious Residences by Armani/Casa (18975 Collins Avenue, Sunny Isles Beach, Florida), developed by Dezer Development.

They spoke about the current state of the real estate market in Miami-Dade and close communities in Broward and Palm Beach counties that are a quick drive up I-95 and enjoy the same South Florida weather yearlong. Other topics included: What makes Miami and South Florida such an active destination for many around the country and the world, contrasts between the renting and buying markets, the ins and outs of searching and asking for proof of funds from potential buyers, the impact of brand names on a project, and more.

When asked about the state of the market, Maria Eugenia Alvarez Vitale, Head of Sales of G&G Business Developments, said, “The market is good.” She is currently focused on sales of Aston Martin Residences in Downtown Miami, an area that she has gotten to know even more through her involvement with the British carmaker’s namesake building. "We are over 50% sold in Aston Martin Residences. The downtown area is booming," she added.

Photo Credit: Romain Maurice

Phil Gutman, President of Brown Harris Miami, opined from the brokerage point of view, comparing the high- and middle-priced homes in the luxury market. “The upper part of the market has been doing well; the middle not so much.”

Palm Beach County real estate expert Steve Solomon, Senior Director of Luxury Sales at Douglas Elliman Real Estate based in Boca Raton, said, "In Boca Raton and Delray Beach, the market is very good. There are many buyers in the market. It's an active season for the $1-3 million range."

Vidal asked, “Besides the weather and tax incentives, what drives people to move to Miami?” Crista Ryan answered, "The wonderful security. We ride our bicycles and feel safe in our communities." She is based in Palm Beach County, where she acts as President of Tina Fanjul Associates. New York native Gutman added, “The quality of life. I grew up walking NY's streets, hearing taxis screech on the road. Here it's more laid back, but we have a lot of companies' headquarters in the area."

Participating as part of the “home team”, Senior Vice President of Dezer Development Sebastian Tettamanti spoke about renting versus buying. "The rental market is very active. The buyer is taking a bit longer,” he said. “Now that there is so much product, agents take clients to more locations. However, the product is moving and we are making sales."

Christian Martinez, Regional Vice President of Florida at Compass, said, "Higher listings take longer, but we see them moving. It also depends on the market. Certainly in Miami, Coral Gables and Coconut Grove have an active market” as he remarked on famous sections of the Greater Miami Area. He added, “Overall, New York money continues to flow into Broward and Palm Beach counties."

Partner and Private Office Advisor of Engel & Völkers Miami Lourdes Alatriste emphasized how members of the luxury real estate market need to research potential buyers for proof of funds. “At that level of luxury properties, you should know who they are."

April Donelson, Cheryl Casone

Photo Credit: Romain Maurice

Fox Business Network Anchor Cheryl Casone was present with her FBN:AM film crew to cover the Summit.

Once the panel ended, Haute Living’s Seth Semilof closed the day by thanking all panelists, Vidal, those in attendance and Residences by Armani/Casa for what was the real estate event of the season.

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