Sotheby’s International Realty News: The 2015 Global Luxury Residential Real Estate Report

The United States is the most popular country for foreign ultra wealthy individuals looking to buy secondary residences, followed by the United Kingdom and Switzerland.

Wealth-X2According to a new report by Wealth-X and the Sotheby’s International Realty® brand, nearly US$3 trillion of the world’s private wealth is held in owner-occupied residential properties, a value greater than the GDP of India.

There are 211,275 ultra high net worth (UHNW) individuals – defined as those with US$30 million and above in net assets – in the world and 79% of them own two or more residences.

Some of the main hubs for luxury residential real estate are New York City, London and Hong Kong, but niche locations – such as Lugano, the Hamptons outside New York City, and rural areas around the world – are gaining in popularity.

The Wealth-X and Sotheby’s International Realty Global Luxury Residential Real Estate Report forecasts that the ongoing shift in the wealth creation cycle from the West to the East, and the growing significance of intergenerational wealth transfers will have significant consequences on the luxury residential real estate market – with a noted emphasis on new developments and a change in investment grade cities.

Below are other key findings from the inaugural report:
• The value of UHNW-owned residential real estate assets increased by 8% globally in 2014.
• On average, UHNW individuals own 2.7 owner-occupied residences.
• As of 2014, over 7% of the world’s UHNW population made their wealth through real estate, up from 5% in 2013.
• Ultra affluent women value real estate assets more than their male counterparts, holding 16% of the net worth in such assets, on average, compared to less than 10% for men.
• Luxury residential real estate is an asset class typically favored by UHNW individuals with inherited wealth: these individuals hold 17% of their net worth in such assets, compared to just under 9% for self-made UHNW individuals.
• UHNW individuals with net worth between US$30 million and US$50 million typically keep their primary residences for over 15 years and their secondary residences for over 10 years.
• Billionaires change one of their four properties, on average, once every three years.
• Secondary residences are typically 45% more valuable than primary residences; twice the square footage and have 10 acres of land.
• At 83%, Monaco has the highest density of foreign-owned UHNW residences.
• Over 6% of the world’s UHNW population have relocated their primary residence to a different country from which they were born – these individuals often keep a secondary residence in their home countries, and India is the leading country in this respect.

The Wealth-X and Sotheby’s International Realty Global Luxury Residential Real Estate Report 2015, which looks at trends in the UHNW population’s appetite for luxury residential real estate across the world, identifies specific attitudes, behaviors and locations that matter to this industry and this wealth segment.

“We are proud to partner with Wealth-X to provide valuable insights into today’s luxury real estate market and the buying behaviors of the ultra high net worth consumer,” said Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC.  “We believe that a solid investment in real estate is one of the single best factors for building long-term wealth, and that many of today’s ultra high net worth consumers would agree.”

“This research offers an inside look into the global luxury real estate market,” said Larry Rideout, CEO of Gibson Sotheby’s International Realty. “Here at Gibson Sotheby’s International Realty we understand the Boston, Cambridge and surrounding markets. This study adds to that knowledge by providing valuable details on many far-reaching markets, which helps inform our clients’ decisions on where to invest on a global basis.”

The Sotheby’s International Realty network currently has over 16,400 sales associates located in approximately 730 offices in 56 countries and territories worldwide. Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. Each office is independently owned and operated.

To view the full report click here: The Global Luxury Residential Real Estate Report 2015

News from our CEO, Larry Rideout

Larry Rideout BWHere at Gibson Sotheby’s International Realty we are pleased that our very own CEO, Larry Rideout, had the opportunity to attend Real Estate Connect in New York City. Rideout kicked off the new year at Connect which was a four day experience bringing together industry leaders and innovators from around the globe. Larry Rideout reported:

“I had the good fortune of attending the Real Estate Connect last week in Manhattan. Setting aside the hyped up Blizzard of 2015 in the city, it was a great educational event. The opportunity to see the cutting edge Real Estate products available to us was eye opening and the start up companies that presented their wares were equally impressive. Like James Cash Penney once said, “Growth is never by mere chance. It is the result of forces working together.”

Every day there were speakers on all aspects of our industry including topics on how a world class real estate media and portal company was built, how a $40 million internet marketing company was built in just a few years, how a real estate app that instantly got 100,000 users was built, and even how a significantly successful real estate team was built.

They were all limited to a 15 or 30 minute presentation, and subject to a question and answer period. This is a perfect time frame for people like myself! Brad Inman moderated many of these and actually asked hard questions of the guests. The speaker list was not too shabby either. How about Richard Smith and Alex Periello from Realogy, Barbara Corcoran, presently of Shark Tank fame, David Liniger of Re/Max, and Rupert Murdoch, most recently of Move.com, but pretty much anywhere he wants to be…

The whole conference reinforced for me, that we at Gibson Sotheby’s International Realty are paying attention and providing our famous “white glove” service to all our clients and customers. It also reminded me that we need to be always paying attention to our industry and always ready to accept new ideas, especially from a technological vantage point.

Oh, and spending a few nights in the City wasn’t a bad time either!”

Sotheby’s International Realty Brand Wins ‘Best in Category’ in Franchisee Satisfaction for Eighth Consecutive Year

Sotheby’s International Realty has been announced as Franchise Business Review’s Best in Category for Real Estate Franchisee Satisfaction for the eighth year in a row. In addition to its real estate ranking, the Sotheby’s International Realty brand came in first overall among the Top 50 “Systems with 250 or more units.”

“This award essentially is our report card from our network, and we are so pleased that they hold us in such high regard within the ranking system. We continually strive to improve our service to our franchisees and we are grateful for this honor,” said Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC.

Here at Gibson Sotheby’s International Realty we are proud to be part of such an extraordinary network and all of its outstanding achievements. The power of the Sotheby’s brand has been palpable throughout our history as a company. Gibson Sotheby’s International Realty has grown significantly since joining the Sotheby’s International Realty brand eight years ago. When acquired the company was operating with 70 agents and $250 million in sales per year, eight years later we are 170 agents, eight offices, and have just closed a subsequent year of 1 billion dollars in real estate under agreement.

Our team of dedicated agents has grown alongside an increase in average price point and our areas of service. With our most recent expansion into the thriving Cambridge market, our phenomenal team coupled with the Sotheby’s International brand has enabled us to recruit top agents in the city and list premier properties in each of these areas.

The Sotheby’s International Realty network currently has over 16,400 sales associates located in approximately 730 offices in 56 countries and territories worldwide. Our unparalleled brand voted number one in the industry and powerful network will continue to make an impact in Boston providing white glove services that are second to none.

Contact any one of our dedicated agents today at 844.667.6663 for all of your real estate needs and experience the Sotheby’s International Realty difference.

Colleen Barry Awarded CRB Designation

Colleen Barry, a Belmont member of Gibson Sotheby’s International Realty, was awarded the coveted CRB (Certified Real Estate Brokerage Manager) Designation conferred by the Council of Real Estate Brokerage Managers (CRB).

The Council of Real Estate Brokerage Managers (CRB), an affiliate of the NATIONAL ASSOCIATION OF REALTORS®, is the professional organization for brokerage management. The Council is dedicated to providing quality professional development programs, products and services that continually enhance the management productivity and profitability of its more than 7,000 members.

The CRB Designation is recognized throughout the industry as the highest level of professional achievement—a symbol of excellence in brokerage management. The most successful brokerages are owned or managed by professionals having the coveted CRB Designation.

The Council awards the CRB Designation to those individuals who successfully complete the requirements and demonstrate excellence in real estate brokerage management. Candidates must complete academic and professional courses covering such topics as finance, marketing, training, recruiting, and strategic planning.

Colleen Barry is a real estate brokerage manager for Gibson Sotheby’s International Realty at 556 Tremont Street in Boston. A member of the Greater Boston Real Estate Board Board of REALTORS® and the Massachusetts ASSOCIATION OF REALTORS®, Colleen Barry is also:

Contributor to Inman News
Member of Asian Real Estate Association of America

2015 Consumer Electronic Show Presents Revolutionary Home Ideas

The Consumer Electronics Show (CES) is an internationally recognized electronics and technology trade show that takes place annually in Las Vegas. The CES is a sponsored show not open to the public that allows hosts to preview products and view new invention announcements.

This year the show featured multiple revolutionary home ideas that will drastically change the way you interact with your home in 2015. Some of the most radical notions from this year’s show include:

  • General Electric’s lineup of smart appliances
    Whirlpool presented their products that are aimed to make users more in touch with their mobile devices. Their idea is to create a sustainable home ecosystem with interconnected dryers, washers, ovens, and even water heaters. Users will be able to pre heat ovens remotely, receive updates when food is done, and even turn off the oven from a distance.

kitchen

  • Microsoft’s PixelSense
    PixelSense will allow products that have the touch feature to no longer require the ‘screen.’ Any surface can be the control panel with a multi-touch interface with the impression that life size items can be controlled within a digital space.
  • Google’s Nest Dropcam
    Dropcam will allow users to monitor homes and offices via the camera’s hardware and software. Security cameras were the desired item in 2014 and companies are looking to step up tracking elements with this device in 2015. Netatmo’s Welcome camera allows an owner to be notified when specific people are visible by the camera. New facial recognition technology will enable home owners to be notified when a specific person is visible by the camera.
  • Logbar Ring
    The Logbar ring is a no hands device that can control appliances, send texts, and even snap photos while the ring sits on your finger.

finger

  • Wireless Charging
    Lastly, is a product that allows wireless charging for all of your devices. Energous’ WattUP can charge up to 12 devices all within a 30 square-foot range working like Wi-Fi for power.

Innovation is not only being seen in the architecture of real estate but across the board completely. These products not make living easier and significantly up the technology seen in newer homes.

More Information: Sotheby’s

 

Massachusetts Real Estate: December Homes Sales and Prices Up to Close out 2014

MARThe Massachusetts Association of REALTORS® (MAR) reported that 2014 ended on a positive note overall as the number of single-family homes sold in December was up 5.5% compared to the same time last year. For the year, both single-family and condominium sales were down compared to 2013, but prices were up year-over-year.

December/ 2014 Year-End Closed Sales:

“It was nice to see the year finish strong with the number of sales and the median price both up from the previous year, despite the shortage of homes for sale,” said 2015 MAR President Corinne Fitzgerald. “Hopefully, prospective sellers will see this as a positive trend and feel confident that it is a good time to sell their homes in 2015.”

Single-Family home sales were up 5.5% over December 2013 closing the year with 4,082 sales. The median price has also seen an increase of 4.1%. December 2014 closed the year with a median sale price of $332,925 over the 2013 median sale price of $319,000. Closed sales have been up only twice in the past six months and median prices have been up 26 of the last 27 months.

Condominium closed sales saw a slight decrease from 2013 ending December 2014 with 1,543 sales as opposed to 1,613 in December 2013. The median sale price of condos increased 3.4% to $317,000 in December 2014. Six out of the last seven months have seen a closed sales decrease in condos while prices have been up 18 out of the last 19 months.

Looking to the 2014 year-end closed sales, both single-family homes and condos saw a slight decrease in year to date sales from 2013 to 2014. “2014 was a year in which the shortage of homes for sale resulted in a decrease of the overall number of homes sold while prices increased,” said Fitzgerald. “At the same time, an improving economy and interest rates that continued to stay low attracted a lot of buyers into a very competitive market.”

December/ 2014 Year-End Inventory and Days on Market:

The inventory of single-family homes on the market in December was down 16.8% compared to the year before (15,339 listings in 2014 from 18,436 listings in 2013), which translates into 3.7 months of supply and is down from 4.4 months in December 2013.

The number of new listings added to the single-family market increased 4% from December 2013. (2,565 new listings in December 2014 from 2,466 listings in December 2013)

The inventory of condos as of December 2014 decreased 24.5% from December 2013 (3,824 listings in 2014 from 5,062 listings in 2013) which translates into 2.4 months of supply in December 2014. This is down from 3.0 months of supply last year. December was the 50th straight month of year-over-year inventory decreases.

The number of new listings added to the market of condos in December increased 3.7% over the same time last year (942 new listings in 2014 from 908 in 2013).

The average year-end inventory of single-family homes saw a slight decrease in 2014 of 0.3%. (Inventory average in 2014 was 22,237 and in 2013 the average was 22,243). While the average days single-family homes were on the market, the number of new listings increased 2.3% in 2014. (New listings in 2014 were 75,577 up from 73,873 in 2013).

Looking to condo year-end inventory averages, the number of condos on the market decreased in 2014 to 5,711 translating into an average of 3.4 months’ supply. Although the number of new condos listed in 2014 decreased 2.3%, the number of days condos were on the market dropped to a low of 78 days since 2013. (A 4.9% decrease days on the market).

Overall inventory of homes for sale is down statewide, but there continues to be pockets across the state that are seeing increases. Despite this lack of inventory, 2014 ended on a high note with single-family closed sales up in December. Rising prices to go along with the improving inventory has caused a shift in the market.

More Information: MAR

Spectacular Rooms to watch Super Bowl XLIX: A Feature of Listings from Gibson Sotheby’s International Realty

In today’s real estate market, buyers are in search for homes with distinguishable factors that set them apart from others. As the Patriots head to Arizona to take on the Seahawks for Super Bowl XLIX, homes that can accommodate guests to watch such an event are high on the radar. Features including media rooms, home theaters, and living/ family rooms with large flat screen televisions are best suited for hosting your annual Super Bowl party.

According to Sporting Charts, the Super Bowl is one of the most-watched programs on television. Last year, the Super Bowl had an average total viewership of 111.5 million viewers in the United States. Whether your guests be avid sports fans or there to simply enjoy the food and company, having the space to host an annual Super Bowl party has become more popular over the years. Such an event brings families and friends from all over to gather and celebrate regardless of the team you are rooting for.

Featured here are extraordinary homes we have listed at Gibson Sotheby’s International Realty. Each has a spectacular room that would enable an outstanding gathering with family and friends to watch Super Bowl XLIX.

42 Commonwealth Avenue Unit 5, Boston- $2,650,000

Enjoy watching the game in the previous home to former Patriots player, Wes Welker!

comm ave

275 Somerset Street, Belmont- $6,750,000

somerset

250 Baxters Neck Road, Marstons Mills- $5,199,000

witter

188 Old Connecticut Path, Wayland- $3,125,000

old conn

52 Goodnow Road, Sudbury- $2,499,900

goodnow

--505 Tremont Street- Unit 608, Boston- $2,195,000

atelier

8 Constellation Wharf #8, Boston- $1,999,000

constellation wharf

360 Newbury #808, Boston- $1,850,000

360 newbuyr

173 Central Avenue, Milton- $1,799,000

central

294 Newbury Street, Unit 3A- $825,000

sharks

75 E Bacon Street, Plainville- $319,000 

bacon

Ultimately the Super Bowl is not only a time to root for your favorite team, but to gather together with your loved ones enjoying time well spent together. Do not hesitate to contact any of our agents today regarding the above properties and make one of these spectacular rooms your own in time for Super Bowl XLIX.

Call 844.667.6663 or visit our website: Gibson Sotheby’s International Realty for more information.

Sotheby’s International Realty Brand Expands Presence in Vermont and New Hampshire

4seasonsSotheby’s International Realty Affiliates LLC recently announced the merger of Lang McLaughry Real Estate, which has 15 offices throughout Vermont and New Hampshire, and Four Seasons Sotheby’s International Realty, which has three offices in New Hampshire. The combined company will be operating as Four Seasons Sotheby’s International Realty.

Simultaneous with this transaction, the combined company has acquired Vermont Country Properties Sotheby’s International Realty, which has five offices across Vermont. A total of 22 offices across Vermont and New Hampshire now will operate as Four Seasons Sotheby’s International Realty.

“Lang McLaughry was established in 1959, bringing an established reputation built over 56 years for service and excellence in the community, and Four Seasons and Vermont Country Properties are both highly respected companies with a similar focus on service excellence.” said Philip White, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “We are proud to welcome them to the Sotheby’s International Realty global network.”
Staige Davis will serve as chief executive officer of Four Seasons Sotheby’s International Realty with Buff McLaughry serving as chief operating officer. Stephanie Wheeler and Pam Perkins are co-owners of the newly combined entity.

“Our goal for nearly six decades has been to provide superior, innovative real estate services to buyers and sellers,” said Davis, formerly chief executive officer of Lang McLaughry. “We are proud to join the Sotheby’s International Realty worldwide network, which we feel has the best marketing resources available in real estate and a reputation for extraordinary service and consistency. Bringing our companies together enables us to continue to pursue our visions of excellence and innovation in how we service our local communities, while being part of a strong global real estate network. Four Seasons Sotheby’s International Realty opened its first office more than 100 years ago, affiliating with the Sotheby’s International Realty brand in 2009. We are so pleased to unite with that rich and deep history.”

The Sotheby’s International Realty network currently has over 16,400 sales associates located in approximately 730 offices in 56 countries and territories worldwide. Here at Gibson Sotheby’s International Realty we would like to sincerely congratulate Four Seasons Sotheby’s International Realty on this extraordinary achievement. In speaking with our Relocation Director we could not be more excited about this merge. Nicole Rideout indicates that a huge majority of our referral buyers are going just north of us to these beautiful destinations on the coast, lakes, and in the mountains for their second home purchases or as empty nesters. We are happy to continue to facilitate these transactions with Four Season’s in their newly acquired territories. Feel free to contact us with any inquiries by email at relocation@gibsonsir.com

More Information: Sotheby’s International Realty

News from our Director of Relocation, Nicole Rideout

Nicole_Rideout_02The secret’s out!  Well, Logan Airport recently announcing a slew of direct flights to international cities including Beijing, Tokyo and Dubai may have been a spoiler alert but, none the less, Boston is rising consistently as one of the worlds most popular cities in the world.  The areas thriving economy, world-renowned hospitals, phenomenal school districts, and highly acclaimed colleges are drawing in families, individuals and companies of all demographics at an all time high.  We have seen a spike both domestically and internationally over the last 18 months.

Coupling an international brand with over 50 years of expertise in the Boston and Greater Boston market allows our company to offer our clients a significant edge.  Relocating clients can easily access our agent base which is equipped with over 15 languages, and sellers can subsequently access this invaluable network of clients.  Our company just announced our most recent endeavor in expanding into Cambridge.  Cambridge is home to some of our countries best colleges, including Harvard and MIT as well as many cutting edge pharmaceutical companies making it a very appealing home for relocating individuals.   The thriving Cambridge market was in need of a local brand with international capability and we are excited to officially introduce our powerful network to the flourishing area.

We reported on the specifics of our international buyers in a recent blog.  This data illustrates the significant increase in buyers from China as well as other countries.  Many international buyers site our school systems as the primary reason for moving here.  A great deal of our international clients purchase property for their children while they go to school, a property we like to refer to as ‘kiddie condos’.  Ergo, the city has proven to be a magnet to young people in particular.  Most of these young people end up making the city their home when their education is complete.  A recent report showed that about 24% of units in new developments are being purchased by international clients and a majority of these transactions are done in cash (Source Boston Globe).  Sotheby’s International Realty (SIR.com) has about 841,096 visits per month and about 42% of these are from outside of the US.  This data as a whole connotes the same message: international buyers are a vital part of our market and our economy and will continue to elicit this impact.  We are both excited and equipped to handle these transactions.

For more information contact our Relocation Department at relocation@gibsonsir.com

Gibson Sotheby’s International Realty: Dorchester on the Rise in 2015

infographicIn 2014, Dorchester saw improvements across the board. Sales have significantly increased reaching a new high of 734 properties sold for the year. A decrease in the average days properties have been on the market is at a new low of 60 days proving that the demand to purchase in this rapidly improving area is stronger than ever.

According to the Boston Business Journal, a task force was created by Mayor Walsh, a Dorchester Native, to focus on replicating the success of the Innovation District in other parts of the city. A committee made up of 27 local leaders will focus their efforts on four neighborhoods which include Dorchester’s Fields Corner, Bowdoin-Geneva neighborhood in Dorchester, Dudley Square in Roxbury to Uphams Corner in Dorchester, and East Boston. This committee can only cause improvements on such neighborhoods that are already thriving on their own.

Voted “Neighborhood of the Year”, Dorchester is significantly evolving as new restaurants, businesses, and developments take over the main streets. Longtime businesses are also revitalizing their store fronts and updating their selections to keep up with this time of innovation.

A few up and coming developments in Dorchester include Ashmont TOD2, a dynamic six-story development with approximately 81 residential units, ground floor retail, and underground and surface parking. This new building is being designed as a contemporary, environment-friendly, Transit Oriented Development that will build on the success of The Carruth to bring a more walkable and better utilized environment to Dorchester Avenue.

Another proposed development is a mixed-use, transit oriented condo project on Savin Hill located directly across from our Gibson Sotheby’s International Realty Savin Hill office and the MBTA station. A spot that has been vacant for almost a decade now according to Mayor Walsh, will be the Savin Hill Residences comprised of 14 units of housing and a single commercial unit on the first floor. There is also talk of another three-story condo complex consisting of 22 residential units and a restaurant said to be called “the Dorchester” located at 367 Neponset Avenue.

Dorchester has recently seen an influx of buyers due to the reasonable prices and great location with easy access to public transportation. With this boom of construction, the Dorchester market can only improve. A great deal of Dorchester’s recent development has been surrounding the T’s Red Line and soon to be stop on the MBTA Fairmont Line at Blue Hill Avenue. This stop is set to open in June 2017 and will bring a great deal of opportunities to Dorchester’s western neighborhoods improving the city overall.

Here at Gibson Sotheby’s International Realty we are Dorchester specialists and are excited to be part of the changes to come in these Dorchester neighborhoods. Contact any of our Savin Hill office agents at 617.825.0800­ for any of your real estate needs and to find out what has made our team the #1 office in Dorchester sales for 2014.

More Information: Dorchester Reporter, Boston Business Journal