Survey: real estate industry is sound
Aspen, CO Colorado
Despite media reports to the contrary, real estate is still considered a sound investment and affluent consumers are confident both in the current housing market, and that the value of their home has remained constant, according to a consumer research study undertaken by Architectural Digest with Sotheby’s International Realty Affiliates LLC.
In the newly commissioned survey, “Seeking an Extraordinary Lifestyle,” 85 percent of respondents agreed with the statement, “I think real estate continues to be one of the better investments a person can make.” The study further revealed:
– 72 percent of respondents believe their primary home value has remained constant or increased in value over the last 12 months (46 percent remained constant; 26 percent increased).
– Nearly two-thirds of respondents report that current conditions have “no effect” on their likelihood to sell their primary home (63 percent).
– In the coming year, 79 percent believe the value of their primary home will continue to remain constant or increase (55 percent remain constant; 24 percent will increase).
– In the next year, more than half (54 percent) of the million-dollar homeowners plan to buy, sell, build or invest in a new home.
– 69 percent of million-dollar homeowners agree that now is a good time to add to one’s real estate holdings.
– 71 percent agree, “Over time, nothing beats real estate for building one’s personal wealth.”
The respondents feel that the media plays a role in the perception of the current real estate market conditions:
– Half (50 percent) of respondents think the media exaggerates conditions to make the market seem worse than it is.
“This study confirms that even in a downturn economy, our readers are what we call ‘recession- proof’,” said Giulio Capua, vice president and publisher of Architectural Digest. “They continue to spend money on real estate and other luxury goods and services.”
And that appears to be the case in Aspen, as well.
The Aspen market is seeing steady home sales that compare to our market in 2004/2005. These were record setting sales years and at the time everyone considered the market to be hot. There are still a number of buyers looking for real estate and although asking prices have declined, prices paid have been comparable to the last year.
The strength of the Sotheby’s International Realty network and its global recognition has helped us reach clients all over the world. In addition, the brand’s marketing support combined with our local statistical data has enabled us to showcase to our clients why real estate truly is a sound and valuable investment in their financial portfolios.
Beta Research Corporation conducted a geo-specific mail survey to 3,500 Architectural Digest subscribers with a household income of $100,000 or more and a home valued at $1 million or more on behalf of Conde Nast Publications in the following designated market areas: New York, Los Angeles, Chicago, San Francisco/Oakland/San Jose, Boston, Atlanta, Miami/Ft. Lauderdale, San Diego, Denver and Detroit. The survey was conducted between Feb. 19 and March 14, 2008. There were 510 respondents.
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