New York Times: Skiers Warm to Buying Vacation Homes Again

Apparently we're not the only ones coming down with a case of "snow brain" this week. According to a New York Times article yesterday, real estate agents from Vermont to Vail have seen a “noticeable uptick” in buyer activity in the last few months, particularly at the high end.

Brent Libby, managing broker in the Stowe office of Sotheby’s Vermont Country Properties, says skiers have warmed to the idea of purchasing vacation real estate again: “The stock market is up, and everyone is feeling optimistic." Still, Pamela Goetz, associate broker at Sotheby’s International Realty Sun Valley, noted: “We all got into a fantasy world there for a while but are going back to the old rules of real estate: Make a wise purchase and anticipate holding it for a while.”

It’s clear luxury buyers are looking for long-term investments and great deals right now… but fractional shared ownership private residence clubs like The Élan Collection may hold appeal for those savvy enough to face the reality that they will most likely only use their ski retreat an average of 4-6 weeks per year (according to some reports). The beauty of going “Élan” is that skiers can use their mountain retreat for a few weeks in the winter… and exchange their guaranteed use rights for flex time at another property within The Élan Collection. Not to mention they’ll have access to A-list amenities and services on par with the most luxurious resorts in the world—minus the headaches associated with typical home ownership.

How do you think about luxury fractional ownership will play out in your ski town? Are you seeing an increase in buyer interest this month?

A Case of Snow Brain: Vail, Big Sky, and Whistler Coming Soon

If you're an avid skier or snowboarder, you might have fresh powder on the brain right now. After all, it IS January and Mother Nature has already showered us with "affection" this year. In Colorado, Vail reported 10 inches of news snow this morning (following the 9 inches reported yesterday), while Aspen reported as much as 8 inches in some areas over the last few days. Latest count at Lake Tahoe was 32 inches in the last 2 days, while Mammoth just added 4.5 inches last night to its recent 8 feet. Another popular ski town farther north, Big Sky, Montana, also welcomed 2 feet on th upper mountain over the past 2 days. But all eyes are on Whistler in British Columbia, with the 2010 Winter Olympics just 25 days away: 8 inches have fallen in the last 24 hours.

If that isn't an impressive base of good news, pack this fact on for size: The Élan Collection will soon be adding several new luxury ski-in, ski-out vacation properties in some of the United States' most sought-after mountain retreats. How does a lavish penthouse at The Arrabelle--Vail's premier ski-in, ski-out residential destination--sound? Or a five-star residence that blends old western charm, modern luxury, and a location just minutes from Big Sky Ski Resort in Montana? What about an ultra private retreat perched on a bluff in one of Whistler Valley's most prestigious ski-in, ski-out locations?

As an Élan Owner-Member, you'll enjoy the best views, slopes and world-class ski locales, plus an A-list of services ranging from valet parking to concierge services, daily housekeeping, luxury spa services, fine dining, and more. Check back here to find out more details about these exciting new fractional shared ownership properties coming soon.

Live Like a Celebrity, Vacation like Royalty in Turks and Caicos

Celebrities like Ben Affleck, Bruce Willis, Keith Richards, and Oprah Winfrey escape to the Turks and Caicos Islands whenever they want a little extra privacy and pampering in a tropical paradise. But you don't have to have be Hollywood royalty to own a luxury beachfront property on the islands. Beginning January 25, The Élan Collection will begin priority sales reservations for its deeded, shared interest ownership opportunities in a private beachfront estate on the Turks and Caicos Islands in British West Indies. Priority sales reservation pricing starts at $1.25 million per deeded interest, but only on a limited basis.

Situated on Grace Bay Beach (voted among the top 10 beaches in the world by Condé Nast Traveler Magazine), the Coral House estate spans approximately 12,000 square feet and rests on nearly an acre of soft powder white sand beach. The luxury residence includes five bedrooms, a library, office, two living rooms, breakfast room, family room with a large flat screen TV, and formal dining room. Exceptional details, materials and furnishings can be found throughout the home, including coral render flooring with glass tile inlay; beautiful Brazilian hardwood doors; antique wrought-iron gates imported from France, Egypt and Saudi Arabia; and a unique blend of antique furniture and one-of-a-kind designer pieces.

Ownership interests in the Coral House will provide Élan Owner-Members with four weeks of exclusive use per year. As with all Élan properties, The Coral House includes a variety of A-list appointments and personal touches, such as a personally dedicated 24-hour concierge staff, travel accommodations, daily housekeeping, limousine services, luxury vehicle to use when in residence, personal watercraft, personal item placement inside the home and much more.

For more info on this exclusive property, contact Stan Tonkin at (208) 860-4771 or stonkin@elanPRC.com.

2010 Outlook: Conscientious Consumption

As if you needed a blog to tell you that the days of conspicuous consumption are over… but that’s what Wall Street Journal blogger Robert Frank has proclaimed. In a recent post, Frank predicted that the demand for luxury items would return in 2010…but on a modest scale.

“Conspicuous consumption will continue to be replaced by conscientious consumption, with pricing, quality and morality (impact on the environment, etc.) becoming more important in high-end spending,” he wrote. Luxuries like private jets, yachts and vacation homes are already showing “tentative signs of recovery,” he added. Luxury real estate specialists such as Ronda Moll agree that the affluent seem to be growing comfortable with investing again.

“We have definitely seen a slow but consistent increase in affluent clientele,” noted the Lake Tahoe-based Realtor. “These buyers are savvy enough to not look for the bottom of the market, but rather have realized that there are great opportunities to take advantage of right now.”

Last week’s MarketWatch report on luxury spending also found that the high-end market segment is making a modest comeback in 2010, with luxury jeweler Tiffany & Co. reporting better-than-expected holiday sales.

What does that mean for the shared interest fractional industry?

"Shared interest fractional ownership clubs like The Élan Collection are hitting at the most opportune time in the luxury market,” pointed out Dane Soderberg, broker associate with PS Platinum in La Jolla, Calif. “Most luxury homes are second, third or even fourth residences. The usage over the years has been limited to two or three months of the year, while the cost of ownership remained year round.”

Added Brett Comps, owner-broker with PS Platinum: “With the recent changes in the market, many owners have decided to sell their vacation homes. While owning a vacation home remains part of their desired lifestyle, the expense has not. Shared interest homes allow top end clientele to keep the same level of usage at a fraction of the price."

Do you see conscientious consumption at work in your local market? Do you think this philosophical shift will open up opportunities for shared interest ownership opportunities?

A Boost of Confidence

Luxury buying trends are looking brighter. Today, MarketWatch reported that luxury jeweler Tiffany's better-than-expected holiday results "may be an early sign that things are on the upswing, at least for the well-heeled." Earlier last month, the Spectrem Affluent Investor Confidence Index found that affluent investors grew more confident in the investment environment in November, improving to a neutral stance for the first time in nearly 2 years. The Spectrem Millionaire Investor Confidence Index also rose in November.

Still, both reports indicate a cautious embrace of the future. George H. Walper, Jr., president of Spectrem Group, noted that since recent economic data has not been overwhelmingly positive, "it appears that the affluent in particular are approaching the future with some level of continued caution."

Why does the management team at The Élan Collection see these developments as positive signs?

"There is more evidence that the affluent are adjusting their spending habits to more of what they actually need and use," said Stan Tonkin, vice president of international sales and marketing. "Owners of vacation residences typically only use their properties four to six weeks per year on average, making ultra luxury private residence clubs like The Élan Collection a real value opportunity in this market."

2010 Outlook: Smart Money

What will 2010 bring? It’s a question everyone is asking this week. We invited several residential specialists to share their insights about the luxury vacation real estate marketplace this year. We'll be posting them throughout January, to mark the first month of the New Year.

Dale Thornburgh, a Las Vegas-based Realtor with Dyson & Dyson Sothebys International Realty, says he is seeing a lot of "smart money” come from Canada. Motivated by favorable exchange rates and the long-term investment potential of American real estate, luxury Canadian homebuyers continue to invest in ultra exclusive high-rise Vegas properties. “They see value here, and Vegas is one of their favorite vacation destinations,” he said. Las Vegas has not only attracted international tourists from Canada, but also Mexico, the United Kingdom, and Asia who want to capitalize on the weak dollar for gaming, shopping, and real estate investments.

The national statistics reflect similar buying trends. Canada and the United Kingdom remain the largest international shareholders in U.S. real estate market, followed by Mexico, India and China, according to NAR. When buyers from these countries can own a share of a distinctive vacation property like Turnberry Place, “investing in U.S. real estate makes a lot of financial sense,” added Stan Tonkin, Vice President of International Marketing and Sales for The Élan Collection.

What do you think? Are you beginning to see smart money trickle in from overseas now that 2010 has arrived?