Luxury real estate does not always reflect the overall housing market. It has its own unique set of buyers, who generally have been wildly successful in their respective businesses and expect the same outcome with their real estate holdings.
With that in mind, the folks over at RISMedia recently provided an updated analysis of the luxury real estate market in Orange County and beyond. There were a few interesting take-aways worth noting as we near the summer season.
For starters, the luxury real estate market in Orange County has remained strong through the first half of 2014. Many available luxury homes are continuing to draw multiple offers and many of these are ultimately bought with all-cash offers In fact, some estimate as many as half of all luxury real estate transactions in Orange County are now all-cash. There are two major factors driving the heavy competition for luxury real estate in Orange County and beyond. They continue to be a supply shortage of high-end homes and the continued emergence of international buyers.
According to RISMedia, up to 60% of all luxury real estate purchases in Orange County and major cities like Los Angeles, San Francisco and New York are being made by foreign buyers. In Southern California, Chinese buyers have become a dominant force. RISMedia provided a bit of insight into this growing community of luxury homeowners and it’s worth passing along to the real estate professionals out there.
Chinese buyers DO typically begin their house search online, but usually do not make contact online because they don’t want to make public their interest in investing in a foreign market. It’s also worth noting that these buyers typically prefer new home construction.
Here’s the money line from RISMedia when it comes to this topic: “Agents who go the extra mile for these buyers are earning significant residual sales through repeat business and referrals to family and friends.”
All signs continue to point to another strong season in luxury real estate as we head into the summer months. For those interested in luxury real estate in Orange County, you can find many options at a variety of price points on this Web site. Feel free to begin the search here for your potential dream home now.