Luxury Portfolio International‘s 2018 Global Luxury Real Estate report found that, globally, almost 40 percent of high-net-worth individuals will be looking to buy property but only 23 percent are willing to sell. With the imbalance of purchase intent, the market could experience higher prices, less inventory and hesitation of sellers as they try to find new homes.
The report found that the Middle East had the most active affluent buyers, with 71 percent of high net worth residents looking to buy. In North America, 30 percent of its high net worth residents looking to buy luxury property, and 25 percent of its residents looking to sell.
Last year’s report found the number of buyers to be at 38 percent and the number of sellers to be 26 percent, similar to 2016’s 38 percent high-net-worth buyers and 23 percent sellers.
In other real estate news:
- This October, homebuilder moral boosted with the fall of lumber prices. The National Association of Home Builders’ monthly sentiment survey recorded a one point increase of positive growth to 68. With supply costs experiencing a 5 percent uptick, as reported by NAHB’s Chief Economist Robert Dietz, lumber prices have fallen. “Builders are motivated by solid housing demand, fueled by a growing economy and a generational low for unemployment,” said NAHB Chairman Randy Noel. “Builders are also relieved that lumber prices have declined for three straight months from elevated levels earlier this summer, but they need to manage supply-side costs to keep home prices affordable.”
- Co-founder of Toll Brothers, Inc. Robert I. Toll will step down from role of executive chairman of the Board of Directors on October 31, 2018. Toll will serve as a special advisor to the company and will remain a member of the Board of Directors. Effective November 1, 2018 Toll will receive the title of chairman emeritus of the board. Douglas C. Yearley, Jr., the company’s CEO and a member of the Board of Directors, will be added to the position of chairman of the board.
- The Federal Housing Finance Agency (FHFA), Freddie Mac, and Fannie Mae have announced the launch of Mortgage Translations. The three agencies collaborated in forming the centralized clearinghouse of online resources used to aid in the communication between limited English proficient (LEP) borrowers and other real estate professionals such as lenders, servicers and housing counselors. In today’s mortgage market, LEP borrowers make up a growing population of contributors. Mortgage market professionals like the FHFA, Freddie Mac and Fannie Mae are looking for tools to accommodate these LEP consumers. Spanish-language documents are currently available through the service with plans to add Chinese, Vietnamese, Korean and Tagalog in the coming years.
- The Residential Real Estate Council has announced that the Council’s Sell-a-bration event will take place on Feb. 1 and Feb. 2, 2019. The Council’s annual event will take place at Caesars Palace in Las Vegas, Nevada. The event is a networking and advanced educational opportunity for exceptional residential real estate professionals.