Luxury real estate gossip the last few months has fluttered around topics like the sale of Donald Trump’s Palm Beach mansion at $100 million (when it had been listed for $125 million), the pending foreclosure of Ed McMahon’s Beverly Hills home, and the F-word in luxury real estate (foreclosures).
These days, recession is the hot topic as brokerage accounts have been bloodied, home equities have declined, and credit cards are filling up with gasoline charges. It’s no wonder that it’s now fashionable to talk about frugality. And these discussions are leading to real changes in lifestyle.
Some very random observations and sensible advice:
1. Hybrids are the cool cars. Gasoline guzzling Beamers and Mercedes are being traded in for fuel-sipping and leather-seated hybrids. In some areas, there are wait lists of months for the Toyota Prius.
2. Have adjustable rate mortgages on your home or other properties? You may want to consider financing that will carry you through the financial storms ahead. Values are slipping in many luxury real estate markets–and appraisals may become problematic in the year ahead. Just my opinion, of course.
3. Are fewer Americans traveling to Europe? We’ve known several who have canceled European holidays and are traveling locally–or to Asia instead. Nobody wants to spend decimated dollars in a in a Euro-pumped economy. US dollar exchange rates against the Chinese Yuan are far more attractive.
4. A bright note in the economy are the number of Europeans, Canadians and others who are coming to the United States to shop not only Neiman Marcus and Chanel, but to spend those Euros and Loonies on prime US real estate. Homes in San DIego, Palm Beach, Scottsdale and Las Vegas are phenomenal bargains when purchased with these foreign currencies.
5. A number of affluent baby boomers are scaling back. They are aiming to trade their large suburban homes for something smaller, something single level, and something that is in walking distance to beaches, golf, restaurants, and mass transit. Trains, in particular, have captured the fancy of many,
6. This is only buzz, but I am hearing that many are dropping and/or selling country club memberships–and that there are reportedly thousands for sale in golf heavens like the Palm Springs area. Any other information out there?
7. More people appear to be dining at home. In the La Costa area where we live, both Tommy V’s and Sushi on the Rock have shuttered their doors. These were bustling restaurants just a year ago. It is likely a scenario that repeats itself throughout the country. And is it just my imagination, or do the local farmer’s markets seem to be busier this year? Perhaps people are rediscovering the utility of their own lovely kitchens.
Somehow, I think there will be future articles and lots of discussion on frugality in our lifestyles.
After all, consider the real estate and stock market bargains that might be bought with the money saved….
Maybe this is where the phrase “Cash is King” comes from. In trying times, those with cash call the shots…they can afford to wait and watch.
Roberta,
The Half Moon Bay Coastside is a short drive to San Francisco, has a gated golf community with several price points and layouts, with easy access to the beaches. Our luxury market is still on the soft side and cash buyers are heartily welcomed. Interesting to read your take on the San Diego area.
Hope you are well!
Marian