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!