"It's my kind of town. Chicago is." The legendary rat-packer Frank Sinatra bellowed this favorite throughout his career, and today, the proud residents of this city and its affluent suburbs are whistling the same tune. And what is it about the Windy City that makes people want to sing about it?
"Chicago offers so much that appeals to a luxury demographic," explains Donna August, Previews Manager for Coldwell Banker Residential Brokerage in Chicago/Milwaukee. "Theater, music, the arts, beautiful parks, Lake Michiganwe are a big metropolitan area, offering everything you would expect from a large, world-class city, but with a welcoming, neighborhood feel."
And these qualities are some of the reasons why 2004 proved to be a banner year for high-end residential real estate in the Chicago area. August notes that through the third quarter of 2004, there were 749 home transactions in the $1 million-plus category, an increase of 27.8 percent from the previous year. In addition, some of the most expensive properties in the company's history were sold, including a $9.5 million historic Howard Van Doren Shaw lakefront estate in Lake Forest and an 8,000-square-foot Bruce Gregga-designed co-op apartment in prestigious Lincoln Park for more than $6 million.
From city high-rises to single-family homes in the suburbs, the Chicagoland area and its well-stocked inventory offer many upscale lifestyle options. At press time, more than 2,000 homes with prices beginning at $1 million were on the market, according to August. With plenty to choose from, now is certainly the time to buy in this vibrant metropolitan region.
August predicts that with such a healthy inventory of fine homes, Chicago's luxury market will remain strong in 2005. She concludes, "The economy is improving, the election is over, so trepidation about the future is easing a little...these are the factors we believe will have a strong impact for the success of our upper-bracket market."
Destination: Florida
World-class beaches, beautiful properties, great shopping and fine restaurants are what John Cook, Previews Property Specialist for Coldwell Banker JME Realty, says sum up the appeal of Northwest Florida for upscale buyers.
In the Sunshine State, both the city of Destin and South Walton County provide residents all of the above, as well as a great location and more. Cook notes that over the past five years, Destin has emerged as one of the top luxury markets in Florida. Why?
"As a 'drive to' destination, this area is the best," Cook states. And new residents come from all over, traveling from places like Memphis, Tenn.; Atlanta, Ga.; and Birmingham, Ala., to experience everything that Destin has to offer.
And Judi Rutland, sales manager for Coldwell Banker JME Realty in Walton County, adds, "The area between Destin and Panama City Beach is less commercialized." More than 40 percent of the beaches of South Walton are dedicated to nature trails, state parks and preserved state lands, she says.
Master-planned communities are on the top of buyers' wish lists, and Destin provides a plethora of options. Cook notes that the favorites among homebuyers include the waterfront, golf-course communities, Kelly Plantation and Regatta Bay. One to watch is the Plantation Place neighborhood in Kelly Plantation. Located along the 18th hole, it will offer 34 homesites with custom-built dream estates starting at $800,000.
Noted for their privacy, the communities of WaterColor and Rosemary Beach, both located in South Walton County, are two sought-after communities on the rise for 2005, Rutland notes. WaterColor is a 499-acre coastal resort community with residential options, and Rosemary Beach is a private resort in Rosemary Beach.
Sweet Sea Isle City
Between Atlantic City and Cape May, Sea Isle City is centrally located on the southern end of the Jersey shore and is drawing buyers from all over the Garden State and metro Philadelphia, Pa. Whether it's for investing or vacationing, Sea Isle City has been and continues to be a top choice among high-end beachgoers.
Dustin Laricks of Coldwell Banker Laricks reports that beachfront properties are a traditional favorite among area homebuyers, but says that at a going price of $2 million and up, waterfront homes here are not in everyone's seasonal, second-home budget. But Sea Isle City can also accommodate buyers who can't land a property on the sand.
"A unique characteristic is that the island is narrow, so no matter where you are, you can still walk to the beach," he explains.
And many families are walking to the beach from new construction houses or side-by-side town houses, a signature design of this shore city. A typical beach-block town house features four to six bedrooms, three to five baths, open and airy spaces, plus porches to enjoy ocean views, all for $1.2 million.
Laricks notes that usually a resident's first purchase is something in the $800,000 range and not on the beach, but after they fall in love with this shore locale, they tend to upgrade.
"The average investor in Sea Isle holds their house/condo for about three years before moving to another location on the island," he says. "Some upgrade to be closer to the beach; some upgrade to a larger unit; and some do both."
And lately, upgrading is easy. Laricks explains that in the last five years, this town has experienced much growth and quite a boom of new construction, with no lack of shore to please homebuyers.
Sought-After San Diego
It's no wonder so many home purchasers are interested in the high-end options offered by San Diego County. This southern area of California is known for its near-perfect climate with the average temperature ranging between 65 and 77 degrees year-round, making it possible to enjoy the miles of sandy beaches and endless opportunities for golf. And this overwhelming demand has in turn driven the prices up, up, up.
Rick Hoffman, president of Coldwell Banker Associates Realty, explains, "Rancho Santa Fe had an average sales price in August of 2003 at $1,842,517. The same month in 2004 saw the average sales price increase to $2,512,416." Hoffman attributes this to the fact that currently San Diego has a limited supply of new housing, and when the population outstrips supply growth, competition will drive the prices upward.
Such commanding interest has put other high-end areas of San Diego on the map. On the rise are Santa Luz, 4S Ranch and North Poway.
"[They] are supplying the market with move-up properties in communities with [an] upscale but rural feeling," Hoffman notes. A great location, good schools and superior community services are additional reasons these neighborhoods appeal to buyers.
Also making a strong comeback are golf-course communities. Hoffman says that over the past few years, these developments had losttheir luster among high-end buyers, but newer communities are turning this trend around, including The Bridges at Rancho Santa Fe and Crosby Estates. The Bridges boasts a Robert Trent Jones Jr. golf course, a 35,000-square-foot clubhouse and spacious homesites on 2-plus acres, with newer homes starting at $2.5 million. Crosby Estates on 722 acres is proposed to offer custom homes surrounding the 18-hole golf course.
Commanding Communities
Well-heeled homebuyers from all over the world are flocking to central Florida to enjoy the year-round blue skies and world-class beaches. "Our office is highly specialized in targeting overseas and out-of-state buyers who wish to own a second home in our sunny state or wish to invest in some of the exciting new developments," explains Dave Hammond, general manager for Coldwell Banker Team Realty.
And such developments on the mind of upscale travelers looking for a more permanent stay include Reunion Resort and Club and The Bella Collina Development. Reunion is a 2,300-acre resort with three signature golf courses, a $14 million water pavilion and 8,000 luxury condos and high-end homes combined. Hammond notes Reunion has sold nearly $500 million since opening in July 2001.
New in 2004 is Bella Collina with 1,900 acres, 8 miles of lake frontage, a Nick Faldo golf course and a state-of-the-art spa and fitness center. First-day sales at Bella Collina rivaled those at Reunion. Homes are priced to $1.5 million. According to Reunion's Web site, this high-end resort saw $174 million in transactions in four hours in one single day.
It's not hard to see why these communities have had quite an impressive effect on the market. Hammond says it was "our best year ever" due to the availability in these high-end resort developments, which have pushed sales into a higher echelon.
A strong interest from international buyers, specifically from Ireland and England, has also driven the market. Hammond reports that there has been a significant increase in overseas buyers in the luxury market due to a shift in interest from European-resort destinations, including Spain, to central Florida's market.
This article provided courtesy of Unique Homes Magazine and does not express the views of Coldwell Banker Real Estate Corporation&3174;
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