Now what? Speculator evacuation in luxury real estate.
In an email from RPI Sales this week they claim:
Between 2002-2005 communities increased prices. Since then, would be speculator buyers evaporated. With the return to the end-user it is time to evaluate how product value compares to its price and competition. Often price increases had no additional buyer benefits such as expanded amenities. While speculators had a checklist of expected amenities end-users plan to use them. They get a facial, not just check off “spa” on a list. How do you compare with other similar communities’ offerings? Your competition is not just your area. As markets strengthen through the fall of 2007, evaluate your product and make necessary adjustments to enjoy increased sales later.
Of course, they are working to fill their booths at this winters real estate shows, but I have heard this from all of my marketing friends in the business. Many of which are resorting to ultra-traditional methods to market the high end real estate. With all of these boomers coming down the pike and all that cash to follow, we are certainly in a seeming slump–and not falling off a cliff. Time will tell.
