Private Aspen Estate Impresses at Open House

Last Thursday, The Élan Collection hosted a special open house event for Castle Creek Villa, a 14-acre private riverfront fractional property in Aspen. The exclusive open house hosted over 25 local real estate brokers, plus an equal number of locals and visitors who were intrigued by the Élan concept. Several of the visitors are now in discussions with their brokers about making reservations and taking advantage of the specialpriority pricing offered this summer. What really seemed to get their attention?

"The fact that Élan is not just another single residence fractional opportunity," said Stan Tonkin, vice president of international marketing and sales for The Élan Collection. "As an owner of Castle Creek Villa, they have the option of exchanging their guaranteed use rights for flex time. The consensus of the broker group was that The Élan Collection is a good fit for the Aspen market. We're very excited to bring the Élan concept to a place like Aspen, where the majority of brokers and potential buyers have significant knowledge about fractionals."

What do you think of the Élan concept vs. single residence fractional opportunities? Is it the future of luxury vacationing?

Cabo San Lucas, Anyone?

At the 2010 Luxury Markets Symposium in Mexico City yesterday, Ricardo Montaudon, Latin America President and General Manager of RCI (a global leader in vacation exchange and one of the Wyndham Worldwide family of brands), noted that the Mexican vacation market is still the No. 1 option for Americans looking to buy abroad. He also added that 45 percent of people RCI surveyed said now is a good time to buy a vacation property. (NAR’s 2010 Investment and Vacation Home Buyers Survey also supports RCI's findings, since vacation-home sales rose 7.9 percent to 553,000 in 2009 from 513,000 in 2008. NAR Chief Economist Lawrence Yun noted at the time the survey was released: "The typical vacation-home buyer is making a lifestyle choice, with nine out of 10 saying they intend to use the property for vacations or as a family retreat.")

What do you think about this news? Are you surprised that Mexico is still the most desirable vacation destination for Americans?

We found the news about the Mexico market particularly interesting because we have been eyeing Cabo San Lucas for some time, in search of the perfect Élan vacation property. We can't reveal too much information at this time, but we can say that we are very close to securing a luxury estate for The Élan Collection in Cabo. If you want to be kept abreast of all of our coming soon properties, feel free to follow us on Facebook or Twitter. You can also contact Stan Tonkin, vice president of international marketing and sales, at stonkin@elanprc.com.

A Tale of Two Fractionals: San Francisco vs. San Diego

When it comes to urban vacations, is your city style more San Francisco or San Diego? It's sort of like the proverbial downtown vs. uptown question.

Earlier this month, Luxury Fractional Guide gave us an answer in the article called, "A Tale of Two Fractionals: San Francisco vs. San Diego." They covered all the chic things to do in the two California cities--which also happen to be the locations for two of Élan's newest pied-à-terres, Alta Collina in San Francisco and Harbor View West in San Diego. "These cities might 'live' at opposite poles of the Golden State, but both offer their own version of the metropolitan high life: San Francisco, with its edgy cool, cultural eclecticism and classic city history; and San Diego, with its warmer temperatures and laidback city-by-the-sea vibe," the article said.

What would be on your "To Do" list if you were to swing into town for a vacation at Alta Collina or Harbor View West? Check out the full story here for some hints.

Midyear Revue: Top 5 Affluent Market Trends of 2010 (So Far)

If there's one thing you can count on at The Élan Collection, it's keeping close watch on luxury market news and consumer buying trends. As you know, we have observed “The New Affluent”—an emerging niche of consumers who value conscientious consumption over conspicuous consumption—with particular interest over the last six months. Now that we're past the midyear point, we thought it would be appropriate to recap the Top Five Affluent Market Trends of 2010 so far:

1. THE AFFLUENT ARE SPENDING LESS AND SHOPPING SMARTER.

They still want their luxury goods, but they relish quality--not namesake or status. In other words, they still want to buy their vacation home in Aspen or their Lexus RX, but they might choose a fractional home or a hybrid version instead.

2. FAMILY IS THE NO. 1 PRIORITY.

According to the Survey of Affluence and Wealth in America 2010 (from American Express and Harrison Group), about 83 percent said they eat dinner with their family at least four times a week, up from 16 percent five years ago when they survey began. Real estate expert, Jeremy Conaway, president of RECON Intelligence Services, would agree. Another interesting finding comes from the recent Merril Lynch Affluent Insights Quarterly, which shows the complexities of affluent families: 51 percent of affluent parents cite financial know-how as an important life lesson to impart to their children and 39 percent of these parents are spending more time speaking to their children about financial matters in light of the recent economic recession.

3. CUTTING COSTS IS "IN"; SPENDING FRIVOLOUSLY IS "OUT."

More than 77 percent of respondents in the American Express Survey defined themselves as resourceful and more self-reliant. Online deals and coupons are more popular than ever; and the wealthiest consumers were also more likely to wait for items to go on sale than in the past. And what about that multi-million dollar vacation home in Aspen they were only using 4-6 weeks out of the year? Sold... and replaced with a $1 million share in a luxury fractional estate.

4. VACATIONS ARE STILL IMPORTANT.

According to the 2009 Affluent Shared Ownership Buyer: A Market Profile, nearly nine in ten of those surveyed said that vacationing is important to their well-being and to the health of their personal relationships. Nearly 75 percent of affluent leisure travelers were also interested in purchasing some form of resort real estate in the next two years. Contrast these findings with the the National Association of Realtor's 2010 Investment and Vacation Home Buyers Survey, which found that vacation home sales rose 7.9 percent to 553,000 in 2009 from 513,000 in 2008, and it starts to look like the future for holiday homes is still bright.

5. THEY'RE EMBRACING SOCIAL MEDIA... CAUTIOUSLY.

This one surprised us--but delighted us at the same time. More than 40 percent had Facebook accounts, according to the American Express Survey...though only 8 percent said they use Facebook to make a purchasing decision.

Fortunately for them (and the brokers we have partnered with), The Elan Collection is not only paying attention to the affluent's changing needs and wants, but we are also putting words into action by continuing to add a variety of luxury fractional properties in different price points and locations. If you haven't already done so, make sure to check out our growing portfolio of residences.

What do you think about our list? Do you have any top affluent trends you'd like to add? Let us know!

Market Sharing with Damion Matthews: PART 2

EDITOR'S NOTE: This is PART 2 of our "Market Sharing" Q&A series with Damion Matthews, a luxury real estate agent in San Francisco and editor of SFLuxe.com. If you missed PART 1, you can read it here.

The Elan Report: Where do you see the luxury market in the city heading in the next year?

Damion Matthews: San Francisco's luxury market has remained relatively sheltered from all the housing issues of the past few years. Prices have fallen, of course, but sale activity has remained steady. I don't see activity either rising or falling in any dramatic fashion, and I don't see sudden shifts occurring in pricing either.

TER: What amenities are your affluent clients looking for in a vacation home?

DM: Views are always number one. If the residence doesn't have a major view, forget about it. After that, they want to be close to the downtown area and really feel like they're in the middle of all the action.

TER: What makes Alta Collina so unusual as a fractional residence?

DM: The first thing I saw when I walked into the home was the bay. It was a clear, sunny day, and the bay was just mesmerizing.

Even though I've lived in the city my entire life, I still took a minute to stop what I was doing and enjoy the view. There's just nothing like it in the United States! You're in the heart of San Francisco, right at the base of Coit Tower, and yet when you go out to one of the balconies, you feel as if you're in a secluded Mediterranean resort.

TER: Who do you see as your ideal buyer of Alta Collina?

DM: That's a tough question because I believe a wide variety of people will enjoy it. I will say that the beautiful setting of the home makes it ideal for anyone looking for a romantic vacation.

Market Sharing with Damion Matthews: PART 1

Damion Matthews of Engel & Völkers in San Francisco is one of the city's rising stars in the luxury real estate market. He is also editor ofSFLuxe.com, a website that celebrates luxury living in San Francisco. Recently, The Élan Collection joined forces with the chic, cool and tech-savvy Matthews to market the Alta Collina residence in San Francisco's upscale Telegraph Hill. We asked him to give us the inside scoop about the city as a metropolitan vacation destination for our "Market Sharing" Q&A series. Here's Part 1 of the Q&A:

The Élan Report: What makes San Francisco such a unique vacation home market?

Damion Matthews: I always marvel at how San Francisco has something for absolutely everyone. You can easily create your experience of the area to match whatever your lifestyle is. If you want to be cosmopolitan, we have fantastic theaters, nightclubs, restaurants and shopping. If you want to be outdoorsy, we have hiking, surfing, biking, skiing, flying. If you want to be totally relaxed, we have countless spas and opportunities for romantic wine country excursions. We have the nation's best sports teams, some of the most important museums, the leading businesses in the world, a wonderful zoo and lots of kids' attractions, plus glamorous social events for the adults. I mean, there's just always something new and fun to do!

TER: Recently, Fractional Life reported 65 percent of overseas investors have expressed interest in fractional investments this year. Do you see fractional home ownership growing in metropolitan locations like San Francisco?

DM: Oh, absolutely! It's a relatively new concept for San Francisco, but with the high prices that premiere properties command in the area, fractional ownership is exciting to people who love the area but are weary of investing several million dollars into a home they won't use full-time.

TER: If a client was choosing between a pied-à-terre in New York or San Francisco, what would you tell them to ultimately sell them on S.F.?

DM: Ah, the New York versus San Francisco debate! I love it! A lot of people simply have residences in both cities. But it depends on their lifestyle. With so many people needing to do business in the Silicon Valley or in Asia, a San Francisco pied-a-terre is a necessity for a lot of people.

TER: What's your best advice for purchasing a fractional residence in San Francisco?

DM: Buying a vacation property is one of the rare instances when you can actually not feel guilty about letting your emotions guide your purchase. You want to be excited about the place! If you walk in and have that "wow" feeling, then it's the right place. And not just from an emotional standpoint, but from an investment standpoint...because if you decide to sell it later on, your potential buyers will feel the same way about it that you do.

Stay tuned for PART 2 of Matthews' interview tomorrow...

America's Most Romantic Cities

Perhaps there was a time when you would have cringed at the thought of leaving your passport at home (along with visions of eight-course candle-lit dinners or Dom Perignon-infused cruises down the Seine) for your next romantic trip with your sweetheart. But Travel + Leisure makes the idea of rekindling romance on domestic soil seem chic again (and perhaps not so over-the-top).

The magazine’s 2010 America’s Favorite Cities Survey—first released in February and profiled yesterday on Yahoo! Travel—compiles readers’ opinions on which cities are the most ideal for a romantic escape.

So, maybe you won’t always have Paris. But what about San Francisco, San Diego or Las Vegas? You’ll find a romantic, luxurious and ultra private fractional hideaway from The Élan Collection in each of these fabulous cities.

1. San Francisco – Picnicking at Golden Gate Park by day. Dining by candlelight at Hubert Keller’s Fleur de Lys by night. After love is all said and done, retreat to Alta Collina with its spacious outdoor terrace to enjoy romantic views of the bay and Coit Tower.

2. San Diego – Spend a relaxing day with your honey, frolicking in the sun on Coronado Island, then treat your senses to a night at the San Diego Symphony. And what romantic getaway wouldn’t be complete without a luxurious master suite with a private terrace for enjoying romantic harbor sunsets?

3. Las Vegas – The city is known for sin, but it’s also a place for igniting passion. Why couldn’t you have your own “What Happens at Élan …” moment at Turnberry Place, where you’d have your own private outdoor pool and spa?

Are any of these destinations at the top of your "most romantic cities" list? Where do you go for a decadent romantic escape?

Fractional "Good" News Round-Up: Élan Style

When it comes to news about luxury real estate and the fractional market, it's not all doom-and-gloom. Since Fractional Life compiled their list of luxury housing "good news" for the upcoming Fractional Summit USA, we thought we'd add our Élan cents. Here is our round-up of the latest fractional "good news" from around the globe:

• According to the National Association of Realtors (NAR) 2010 Investment and Vacation Home Buyers Survey, vacation home sales rose 7.9% from 2008 to 2009. The mean vacation home purchase price in 2009 actually rose by an average of $19,000 to $169,000. NAR Chief Economist Lawrence Yun noted that "the higher vacation home price may reflect increased sales in higher priced markets, particularly in areas of Florida and California where prices became highly attractive for buyers over the past year." Many U.S. buyers are also looking overseas where they get even more for their money--such as The Élan Collection's Turks and Caicos property (which enjoys tax haven status).

• A surge in high-end real estate sales in Aspen (where Élan's Castle Creek Villa resides) during the first half of 2010 has begun to turn broker heads, according to the Aspen Daily News. According to one local brokerage firm, 81 percent of second quarter sales in Aspen, Snowmass Village and Woody Creek were above $4 million, compared to 41 percent during the same time a year ago. Add that to the fact that monthly dollar volumes for luxury real estate sales for the first quarter of 2010 were also anywhere from 50% to 300% ahead of the previous year's monthly total (see The Real Estate Channel), and you've got yourself a very interesting upward trend in the Colorado Rockies.

• As per Fractional Report, long term demand for fractional vacation ownership looks favorable. There are 39.2 million people in the U.S. ages 50 to 59--a group that dominated sales in the first part of this decade--and 44.8 million people between the ages of 40 and 49.

• The latest Case-Shiller Home Price Index reported that home prices increased from April to May by 1.3 %. Prices also increased 4.6% year-over-year. San Francisco (where Élan's newest Alta Collina residence resides) had an 18.3% year-over-year price increase; while San Diego (where Élan's Harbor View West and Casa del Mar are located) had a 12.4% increase. The California Association of Realtors' June numbers also support the Case-Shiller findings: the statewide median price of an existing single-family home increased 13.6% in June compared to the same month a year ago.

• Fractional Life reported earlier in July that Property Frontiers, a UK-based property investment specialist, said 65% of their overseas investors this year have expressed interest in fractional investments.

• And in an illuminating column that opened the door for a potential surge in fractional ownership popularity, the New York Times' Paul Sullivan recently asked: “If it causes stress, is it really a vacation home?” When the industry average for second homes is just 30 days of use per year, and you add in the time and costs of maintaining a vacation home--the idea of sharing ownership and maintenance costs might sound like a smart decision.

Got any good news to share about the luxury real estate or fractional market? Please share it with us!