The Elan Collection Debuts Exclusive California Lifestyle Collection

The Elan Collection has announced the debut of the California Lifestyle Collection. An exclusive, limited offer, the California Lifestyle Collection is a rare opportunity to own a share of four of the finest lifestyle properties in California.

Future owners will have the glamour and sophistication of an historic mansion in San Francisco, the relaxation and tranquility of a 43-acre wine country estate in Napa Valley, the world-class golf experience of a private villa overlooking the Pebble Beach Golf Course and the excitement of skiing and boating at a lakefront retreat on Lake Tahoe. As with all Elan properties, each share comes with The Elan Collection's five-star concierge services and management program for a truly carefree ownership experience. There is also opportunity to exchange reciprocal usage within other Elan Collection homes in Aspen, Santa Barbara, Jackson Hole Wyoming, Las Vegas, Turks and Caicos, Cabo San Lucas, South of France and future locations. Only 10 shares are available in the California Lifestyle Collection. For more information, contact Olivia Hsu Decker at (415) 435-1600.

The Shrinking Second Home

The Wall Street Journal covered a story back in August 2010 called "The Shrinking Second Home," and we still think it's interesting now. The article, by Juliet Chung, touted the trend of "affordable housing for the affluent." While it didn't cover the luxury fractional market, per se, it did highlight a growing niche catering to people seeking a second, or third, or even fourth home with top-of-the-line amenities like concierge, beach access or golf course access--that doesn't break the bank. It seems The Elan Collection isn't alone in our belief that owning a luxury vacation home need not tie up all of your financial assets or come with the stresses and responsibilities associated with typical home ownership...and we think that's just grand.

Market for Vacation Homes on the Rise

According to the Wall Street Journal this week, "sales in many vacation communities across the U.S. soared last year to levels not seen since boom times." The market for vacation homes seems to be growing in the wake of price reductions, growing optimism about the future and buyers' rising stock portfolios, said NAR economist Lawrence Yun in the article. (He also noted that demand is strongest in areas close to stable labor markets.)

The uptick in demand for vacation homes seems to suggest buyers' return to the ultimate luxury in life: time. The affluent want more time with their families, more time to build memories and more time to enjoy the fruits of their labor. Yet, rather than burden themselves with the responsibilities of whole ownership, they could seek out fractional home ownership with a private residence club like The Elan Collection. A fractional vacation home in their favorite destination--be it the Southern California coast or the mountains of Aspen--gives them the opportunity to enjoy four weeks of guaranteed use in the home of their choice, while being treated to amenities and services such as a personal concierge, onsite luxury vehicle, personal item placement in the home and more. The Elan Collection also takes care of all of the details associated with typical home ownership and property management. And best of all, owners have the option of exchanging use rights for another Elan property of their choice...which means there will always be a new vacation adventure to experience.

What's your pulse on the vacation market? Are buyers more optimistic this year, compared to last year?

Luxury Real Estate Market Predictions 2011

Nothing inspires market predictions like a New Year. Along with a new sense of optimism and opportunity, comes the usual chorus of predictions sung by real estate experts and economists. Will the luxury market continue its recovery in 2011? Will international buyers be entering the market with the same enthusiasm as they did in 2010? What will the luxury housing narrative be in 2011?

These are the kinds of questions even the savviest real estate investors are asking themselves as they usher in 2011. Thankfully, our friends at Ocean Home magazine have offered up some answers. The editors recently interviewed Laurie Moore-Moore, Founder and CEO of The Institute of Luxury Home Marketing in their recent report, "Luxury Market Predictions for 2011." Here are some key insights from the interview:

1. HOUSEHOLD WEALTH RECOVERY

"Unless we have some 'wild card' economic event that sends everything spiraling down, the wealth recovery will continue and it will continue to be more global," said Moore-Moore. She noted that North America, Europe, China, Russia, Turkey and Brazil will continue to see a greater percentage of growth in the number of wealthy households. And what about the U.S., specifically? Net worth for U.S. households and individuals increased 2 percent in third quarter 2010. While the average U.S. personal savings rate climbed from 0.4 percent in 2005 to 4.3 percent in 2009, and hit 5.5 percent in third quarter 2010. All of these factors seem to indicate that more affluent consumers may be in a stronger position to purchase a luxury vacation home in 2011.

2. LESS IS MORE

We've been saying this for the last year: affluent consumers are shifting away from conspicuous consumption towards conscientious consumption. This trend will continue in 2011. Says Moore-Moore: "Attitudes of affluent consumers appear to have undergone some changes since the economic meltdown. At least for now, 'whispering wealth' rather than 'flaunt it if you have it' seems to be a common philosophy." The luxury vacation home search is now defined by quality and exclusivity as opposed to big, boisterous displays of wealth. As BUILDER magazine's Jenny Sullivan pointed out at the end of 2010: "Today's value set is more cerebral, focusing on simplicity, resourcefulness, health, community, and practicality." Simplicity, resourcefulness, practicality, quality and exclusivity are values at the very heart of The Élan Collection, which brings the benefits of luxury fractional home ownership to the exclusive world of private residence clubs. Simplicity...because Élan owners can enjoy resort-caliber amenities and services while The Élan Collection takes care of all of the details associated with typical home ownership and property management. Practicality...because they are only buying what they will realistically use. Quality...because The Élan Collection offers uniquely crafted properties so rare that they can never be duplicated at any cost today. And exclusivity...because The Élan Collection only offers a handful of fractional opportunities in each residence, and many residences are set behind private gates, nestled on their own private beach or tucked away on a quiet hillside overlooking town.

3. LUXURY MARKET PERFORMANCE

"Nationally, the luxury housing market has already started to outperform the overall housing market. According to the National Association of Realtors, the market segment which has seen growth in the number of transactions in 2010, is the over $1 million price point," said Moore-Moore. Manhattan is one area where the luxury market's upward motion is in full effect. The New York Times reported today that luxury home sales of $3 million and up made a strong return in the final months of 2010.

4. INTERNATIONAL BUYERS

According to Moore-Moore, U.S. purchases by international buyers will be important in 2011. "The growth in wealth around the world will help fuel demand for foreign buyers to purchase in the U.S. The U.S. is still viewed as a safe haven for investment," she said. She also noted that "prime property in prime locations (especially waterfront with private docks or marina access) will lead the rebound when it comes." That's welcome news for future owners in The Élan Collection. From a beachfront estate on the Turks and Caicos Islands to a spacious lakefront retreat right on Lake Tahoe, Élan's properties have been handpicked for their sought-after locations in some of the world's most desirable destinations. And what's more, The Élan Collection continues to search out properties in prime locales across the U.S. and abroad to give owners the quintessential Élan vacation lifestyle experience.

No doubt, 2011 will be the year to watch for luxury real estate buyers. Will they look back on 2011 with pride, knowing they invested in a luxury vacation experience that allows them to put their own well-being and the health of their personal relationships first?