Wealthy Home Buyers Moving Again on U.S. Luxury Real Estate

HONOLULU, HI, January 13, 2011 (Press-News.org) The U.S. luxury real estate market shows signs of recovery. In April 2010 Texas Energy executive Kelcy Warren purchased a 3,500-acre Colorado ranch for $46.5 million. Hot on the heels of this real estate transaction, an un-named wealthy Indonesian buyer contracted in May for a 48,000 square foot luxury Bel-Air mansion for an amount reported to be close to $50 million. In July the Mexican billionaire Carlos Slim, who ranks number one on this year's list of Forbes billionaires, has purchased the Duke-Semans Mansion on Fifth Avenue in Manhattan for $44 million, according to the Wall Street Journal. Some luxury real estate brokers believe that these real estate transactions illustrate a return of the wealthy to the upper-tier housing market.

Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing - which trains real estate agents in the luxury market and awards an international designation to the most successful reports that, "Institute members from many markets across the country are telling us that buyers at the top of the market are looking again and that many are cash buyers. We believe this anecdotal evidence may herald the return of the very affluent to the national residential market." But is this the case in our local Hawaii luxury real estate market?

Institute for Luxury Home Marketing member Oleg Potemkin, a luxury home professional with Century 21 All Islands, reports that the upper tier market in Honolulu, Hawaii is experiencing an up-tick as well. "Our local luxury market starts around $1,200,000 for single family homes and $500,000 for condominiums. In 2010, according to MLS data, there were 387 single family homes sold where the sold price is over $1 million and more than 155 condominiums were sold where the sold price is $800,000 or more. The most expensive Oahu property sold in 2010 for $22 million and the highest sale for condominium in 2010 was $4,750,000.

Oleg Potemkin is an award-winning sales associate who has been in real estate since 2002 and specializes in the Hawaii luxury real estate market. Oleg specializes in buying and selling residential real estate on Oahu, Hawaii including Waikiki, Kahala, Diamond Head, Black Point, Waialae Iki, Hawaii Loa Ridge, Portlock, Napali Haweo, Lanikai, and other upscale Oahu neighborhoods.

"In the recent economic downturn, the wealthy experienced substantial drops in their portfolios and felt the uncertainty of global economic conditions," said Moore-Moore. "As a result, the luxury market shrank across all product and service categories, including housing. In addition, many wealthy converted investments to cash and have been watching and waiting on the investment sidelines. Today, many are looking at U.S. home values and deciding to buy another residence as both a lifestyle decision and a portfolio play. Although the current turmoil in global economies is a wild card which could change things, we think the luxury home buyer is re-entering many market and shopping for fabulous homes as smart investments."

For insights into the current state of the Hawaii luxury real estate market, contact Oleg Potemkin at CENTURY 21 All Islands at (808) 398-9987 or email oleg@hawaii-realty.com.