Luxury Homeowners Profile In 2013: Demographics of Luxury Home Buyers In Minnetonka, Wayzata, Eden Prairie, Edina and Chanhassen have some of the most exceptional luxury homes in Minnesota. Liz Sprenger, Remodeler of The Year 2010, award-winning home designs are highly sought after by Twin Cities luxury homeowners.
The 2012 Exclusive Luxury Market Report Survey reports, that on a national scale, luxury home sales and luxury home renovations are up. Coldwell Banker Luxury Homeowner Profile summarizes luxury homeowners as 68 percent buy due to their own hard-earned money, where as 11% build their homes from "old" or " inherited money". As we embark on 2013, 44% of the ultra-affluent real estate buyers are entrepreneurs. The same study conducted in 2002 found that entrepreneurs who own their own businesses were then a close second to business executives as owners of luxury homes.
Two of the upper-end hosing market trends summarized Coldwell Banker's December 2012 Luxury Market Report used to predict 2013 trends:
The unprecedented rise of affluent women.
The growth of ultra-luxury consumers who purchase properties priced over $10 million
A Luxury Home Must Have Location, Location, Location Going For It
Housing specialists in charge of the survey discovered that ultra-affluent consumers continue to impact the real estate market in creative and powerful ways. The 2012 Exclusive Luxury Market Report Survey findings underscores, again, the importance of location as a primary factor. Even more precise than that, they are seeking a location with a view. Premium properties near the water generate the most demand. It’s also clear that they know the role of immense success; they posses real estate savvy and the patience required to find the best properties available on the market. That is why Minnesota sees such stiff competition to buy Wayzata and Minnetonka homes. If the location is right with a lakefront view, buyers quickly snap up homes and many immediately embark on a major Wayzata home renovation if the home needs an addition or amenities to meet their wishes.
Demographics On Who Is Buying Luxury Homes:
The majority of the luxury homes over $10 million are sold privately or off-market given the preferences of the purchasers wishes for a confidential sale. Additionally, nearly one-third, or 31.5%, of buyers paid cash to purchase their one million dollar and over luxury home.
Two-thirds of these homeowners are from the " baby boom" generation (between the ages of 45 and 54)
28% are moving into luxury single-family homes as they seek to retire, meaning home buyers between 56 years and older.
A small percentage, only 4% of luxury homeowners are under 34 years of age
Eighty-eight percent of luxury home purchasers are married, usually having two incomes
Of the married luxury home buyers, 54% have children
About 1 out of every 10 distinctive homeowners are single - 6% are men; 5% are women
Seven out of 10 luxury homebuyers (72%) come from the same state where they buy their new home
55% are from the same city
Twenty-four percent come from out of state
28% come from outside of the U.S. Of that percentage, 39% are Asian international buyers
"I’d estimate about 20-25 percent of my luxury real estate business consists of affluent women who have no financial support from a spouse. I’ve seen about a 10 percent increase in the number of affluent single women entering the luxury real estate market from five years ago." ~ Wendy Walker, a Previews specialist
Luxury Homes Most Often Have Gourmet Kitchens
For the fortunate families privileged to enjoy particular lifestyle items and amenities, do so in the comfort of their own home is a chief pleasure. Being able to offer a place of retreat to family and guests is an added bonus. Whether preparing meals themselves or employing their own chefs, luxury kitchens with quality materials put together by a skilled architecture are the number one priority for distinctive homeowners.
Home Features That Luxury Homeowners Want Most:
Destiny Homes offers, in order, the the distinctive home features luxury home buyers are looking for:
kitchens with top of the line appliances
media/entertainment room with theater-style seating
custom built-in wine cellar
tennis courts/basketball courts
indoor pool and ballroom/cigar room
Demand For Luxury Homes Is Up Nationally
In other housing sectors across the nation, the same increase in sales and demand for new luxury homes is up. For example, luxury home sales in Placer, El Dorado and Sacramento counties in CA are up 13.6 percent in past year compared to the same period the previous year, according to California's Table Talk. Around Miami, a luxury market has simply burgeoned this year, the number of new listings hitting the market at $10 million dollars or higher jumped by 176 percent from January 2012 through October 31, 2012, compared to the same period a year ago.
Served On Remodelers Council For BATCHA
Butch Sprenger, owner of Destiny Homes, has served on the remodelers council for BATCHA and as a home renovations leader across the Twin Cities. Liz Sprenger, professional home design therapist for Destiny Homes, often incorporate top-of-the-line designer finishes, gourmet kitchens with designer cabinetry, granite counter tops, sub zero refrigerators, wolf appliances, marble and wood flooring throughout the home. We build to please. Contact Destiny Homes for any home builder questions you may have. Homeowners in the Wayzata, Minnetonka, Chanhassen, Edina and surrounding residential real estate communities ready to build or renovate luxury homes may reach either Butch or Liz by calling 952-934-5706.
Download the summary by Coldwell Banker on Luxury Homeowners Profile For The Luxury Home Market.
Butch and Liz Sprenger, owners of Destiny Homes Remodeling And Renovation Services Home page: www.destiny-homes.com. Service the entire Twin Cites Metro, from our main office in Deephaven, MN working as home Remodeler and owner of Destiny Homes.