All posts by Camilla McLaughlin

Looking Ahead in Luxury

Market Outlook: Looking Ahead in Luxury

Looking back, 2024 was a year of small improvements followed by equally incremental reversals. Looking ahead in luxury, it will remain the most vibrant part of real estate while the overall market gradually improves.

Not quite the long-awaited recovery that everyone has been longing for, 2024 was a year of ups and downs for real estate. “Some of the ‘wild cards’ are behind us,” says Michael Altneu, vice president of Coldwell Banker Global Luxury. “Rates have started to decline incrementally, some industry rule changes have been implemented, and we are no longer in the midst of a high-profile election cycle.” While the industry saw modest increases in inventory, that did not necessarily translate into transactions, making for a year of triumphs and challenges that continue to play out.

Homes Sales

Sales for 2024 will clock in at 4.02 million, approximately 2% below 2023 and well under the historical average of 5.28 million. “2024 has been a very difficult year on many fronts,” says Lawrence Yun, chief economist at the National Association of Realtors (NAR). “We did not get the home sales recovery this year after an awful 2023.”

Yet, by year-end, positive indicators emerged, potentially laying the groundwork for a turnaround in 2025. “While there is still some uncertainty surrounding the macro economy and housing at large, luxury real estate continues to be incredibly attractive for affluent buyers seeking advantages from both a lifestyle and investment standpoint,” adds Altneu. Existing home sales grew 3.4% in October, the first year-over-year gain since July 2021, followed by a 4.8% increase in November, the strongest year-over-year increase since June 2021.

Momentum is building when it comes to home sales, according to Yun. “More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%.”

While growth encompasses the entire real estate market, Altneu says, “it is also indicative of transaction trends we’re seeing in the luxury space, which we hope to continue in the first half of 2025.” The number of single-family luxury homes sold in November 2024, according to the Institute for Luxury Home Marketing (ILHM), increased by 22.5%, while attached homes saw a 7.7% rise. The inventory of homes for sale is expected to increase by an additional 11% in 2025.

ILHM data shows that overall sales at $900,000 and above increased by 22.5% year over year in November. Compared to November 2023, new listings were up by 8.3% for single-family and 7% for attached properties, reflecting an increased confidence among sellers.

Expectations

Anticipation and hope that the second half of 2024 would bring lower rates was much delayed, indicating that the lower end of the market may continue to struggle in the coming months. “The lock-in effect that’s hampered inventory for three years just keeps rolling right into 2025, particularly at the lower tiers of the housing market,” Marci Rossell, chief economist for Leading RE and Luxury Portfolio, explains.

Have It All

Over 44% of Coldwell Banker Global Luxury agents report increased demand among the most affluent buyers for “have-it-all” properties — impeccably presented, move-in ready, or new-construction homes with attractive pricing. Another option for buyers who want it all is branded residences. Top choices that continue to dominate the resort landscape are residences that are tied to major hospitality, fashion, or automobile icons.

“Our expectation at the beginning of 2024 that affluent buyers would eventually adapt to higher interest rates and prices is becoming a reality,” says Altneu. There is still a large homeowner population with little incentive to sell, those with low rates, and those wishing to avoid paying capital gains taxes.

Just under half of luxury buyers this year paid with cash. Still, experts such as Ron Shuffield, president and CEO of Berkshire Hathaway HomeServices EWM Realty in Miami, say even for the affluent, rates play into buying plans since buying power can be reduced (or increased) significantly.

©ISTOCKPHOTO.COM/SZEPY

Consumers in the luxury market are increasingly turning to AI technology to find their dream homes, transforming the home-buying process. By streamlining searches and personalizing options, AI is ushering in a new era of innovation in real estate.

Rates and Growing Markets

“We are predicting steady growth in 2025 in markets throughout the world, with continuing high demand in the most prestigious luxury markets,” observes Meghan Barry, president of LuxuryRealEstate.com. In the U.S., interest rates are expected to remain relatively stable, with a possible slight decrease, while limited inventory will keep driving competitive prices. “Many real estate consumers will have adjusted their expectations by 2025, and the ‘why now’ conversations with buyers and sellers will be less of a challenge for those in the industry,” says Barry.

Expectations are that mortgage rates will hover in the 6% range in 2025, which Yun believes will be the new normal. Yun also forecasts a 9% increase in home sales for 2025 and 13% in 2026.

Curves Ahead

Significant changes are on the horizon, not because of commission rulings but as a result of artificial intelligence (AI). Few areas of real estate and homes will be immune to the influence of AI. “It will be like going from kindergarten to fifth grade,” says Kevin Hawkins, editor of Real AI. From security to renovation to interiors and design, AI will enhance and also streamline. By unlocking data from photos, AI will empower home searches, allowing buyers to continually fine-tune their vision and then find homes to match that vision. And rather than taking over an agent’s function, Hawkins says AI will elevate what they bring to the buying process.

“It’s encouraging to see contract signings increasing in all major regions of the country,” Yun says. “More notable gains from a year ago occurred in the expensive regions of the Northeast and West. The recordhigh stock market is providing a boost for upper-end home buyers.” Miami-Fort Lauderdale is projected to be a 2025 hot market only eclipsed nationally by Colorado Springs. “I am very encouraged by 2025,” says Shuffield, noting slow sales over the last three years, with 2024 charting the fewest residential transactions in Miami-Dade in the last 15 years. “That’s getting ready to change,” he says. “We are anticipating that 2025 will be a much stronger year in number of sales. But we don’t forsee a spike in prices. Prices will probably be steady and stable.”

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Demographic Plays

“The profile of the luxury home buyer has evolved in recent years, with several new generational groups emerging as key drivers,” says Anton. “Millennial and younger Generation X consumers are becoming more prominent within the market, particularly as they inherit wealth and capitalize on successful investments across artificial intelligence and cryptocurrency ventures.”

Post Election

Political activity typically translates to movement in the real estate market, particularly the high-end, and this year has been no exception. Stephanie Anton, president of Corcoran Affiliates, says, “Just this past month following the presidential election, we’ve observed a significant increase in luxury buyer activity within Corcoran markets where inventory is stable.”

Currently, financial markets are anticipating economic growth under the Trump administration, which Realtor.com economists believe will boost incomes. The surprise factor will be how other policies affect the price of goods and services and whether anticipated tax cuts occur.

Other potential policy changes under the new administration could have mixed results, according to Realtor.com economists. Initiatives to make Federal land available for home building and potential streamlining of regulations could boost the supply of homes. At the same time, tariffs and new policies could constrain home construction and renovation efforts.

The luxury market has been real estate’s bright spot, according to Rossell, who sees the market as bifurcated with wealthy individuals benefiting from stock market gains and corporate tax cuts. “I think luxury does really well in this environment because for the high-net-worth buyer, their stocks are exploding, and the wealth effect is powerful.”

On the Horizon for Design

Few rituals provide a better snapshot of the consumer mindset than color forecasts. Following Pantone’s precedent, manufacturers of all stripes, from paint to exterior cladding to wallpaper, now offer similar insights on color and designs. Tapping into a growing desire for comfort and subtle elegance, Pantone looks to Mocha Mousse as the Color of the Year. This rich, warming mid-tone evokes the comfort derived from coffee and chocolate and expresses a global mood and attitude. In luxury, browns are taking center stage, a penchant designers see extending into furnishings, particularly a preference for wood. Optimal design today combines vintage pieces with comfortable textures and modern accents. Wood sideboards and credenzas are expected to make a comeback. “The same is happening in architecture, where even the more austere practitioners have embraced organic materials and ‘warm minimalism.’”

Expected Additions

2025’s hot button? Cold plunge pools and cold treatments for wellness. Adoption of these features surged in 2024, and it seems cold therapies have become integral to wellness. Also cropping up on wishlists are wet rooms favored by architects, designers, and consumers. Built around a curbless shower and a tub, these glass enclosures conserve square footage while also creating an indulgent master bath. Where money is no object, 1st Dibbs says closets with extra space and storage are the top additional rooms that designers will recommend to clients. Recommendations for guest suites follow close behind. Also on the rise is an interest in scullery and outdoor kitchens, which are part of the continued appeal of athome entertaining. Kitchens are predicted to be the most requested renovation per 1st Dibbs annual designer survey, with 61% of homeowners seeking updates. Living rooms follow at 51%.

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Beyond Traditional Luxury Granny Flats

These expanded living spaces could revolutionize the concept of home living for many luxury granny flats

Accessory dwelling units (ADUs) might sound like a new-fangled option for housing, but the concept dates back centuries. Luxury granny flats, guest cottages, and casitas were customary accessories to the main house. It was rare for an estate not to have a carriage house or outbuildings for staff. All these options fall under the mantle of an ADU. Architects such as Jeff Kruth and Murali Paranandi, professors of architecture at Miami University, call them “the original compact housing.” Still, research, including a recent Freddie Mac survey, finds that 71% of consumers are unfamiliar with the concept or the term.

Today, ADUs are being touted as potential solutions to diverse housing challenges, from affordability to changing demographics. And rather than just a place to stash granny, they are increasingly perceived as an option that benefits all age groups.

Photo Courtesy of Superior ADU’s

What is an ADU?

An ADU is a second house or dwelling constructed on a single-family lot that typically is subordinate to the main house. As defined by Freddie Mac, an ADU is an independent living unit. A private entrance, heating and cooling system, bathroom(s), and kitchen are required. Typically, according to John Burns Research and Consulting, the primary home and the ADU are considered one property for tax and appraisal purposes.

ADUs can be built from the ground up or created from existing spaces such as a basement, garage, or attic. Whether attached or detached from the main house, they are required to have a separate entrance. 

Photo Courtesy of Bunch Design / By YerinMok

Luxury Granny Flats More Than Simply a Tiny House

Mention these accessory dwellings, and most people envision something akin to a tiny house. Which the International Building Code classifies as 400 square feet or less. What surprises most about ADUs is “how large they feel and how functional they can be.” Says Sheila Hedden, owner of Superior ADUs, a design-build firm in Orange County, California. While some might have square footage comparable to a tiny house, many are substantially larger. Often measuring 1,000 square feet, even 1,200 square feet in some locations, with multiple bedrooms and baths.

Photo By Parrish Ruiz De Velasco

Luxury Granny Flats Not Just for Houseguests

A recent survey commissioned by AARP asked adults 18 years and up why they would consider creating an ADU. A vast majority, 86%, said it would be to provide a home for a loved one in need or to create housing for relatives or friends. Three-quarters said their motivation was to create a place for a caregiver or a nanny. Approximately 69% said it would increase the value of their home. Other incentives measuring over 60% included: “67% would feel safer by having someone nearby.” 

Projected uses include multiple scenarios in which having a smaller structure extends options for families. “We are seeing people from all demographics. We see the most interest from homeowners who want to build for family members. Many are built for aging parents, or their young adult children who can’t afford to buy a home. Some are building for themselves and allowing their adult children and grandchildren to move into their primary homes. They downsize, while their adult children upsize. It’s a great way to increase affordability for all involved,” says Hedden. “Even those homeowners who build them for family members are thinking about future rental income, as well as increasing the value of their properties.”

Why ADUs

Recognizing the lack of opportunities to develop new housing, the California legislature passed a suite of new legislation beginning in 2016. It aimed at facilitating ADU construction by easing zoning and land use regulations. According to the California Department of Housing and Community Development, the total number of ADUs permitted in the state rose. It rose from just under 9,000 in 2018 to nearly 24,000 in 2021.

“The demand continues to grow,” adds Hedden. “In 2020, we received many calls from people who were interested but not yet ready to pull the trigger. Some were skeptical about whether the state laws facilitating ADU builds would continue. Since then, it’s gotten easier to build ADUs, and the calls have increased.”

Photo By Parrish Ruiz De Velasco

California might be perceived as the leader of the current ADU vanguard, but states and municipalities nationwide have been proactively relaxing zoning restrictions. New Hampshire and Vermont allow ADUs nearly everywhere single-family housing is permitted. New Hampshire’s 2017 legislation stemmed from builders’ frustration. At not being permitted to construct the backyard cottages and garage apartments clients requested. In 2022, Maine legislators began requiring municipalities to allow ADUs and duplexes to be built on land zoned for single-family housing. In Oregon, cities and counties of specific sizes are obliged to allow ADUs in all single-family areas within urban growth boundaries. In 2021, the state extended ADU rights to rural residential areas. Other states allowing ADUs, according to AARP, include Connecticut, Rhode Island, and Utah. 

It’s Still Local

Local zoning is equally instrumental to ADU creation, with local regulations determining location, size, parking and other characteristics even in pro-ADU states. “Some communities allow almost any home to be set up with an ADU. So long as size limits, property line setbacks and placement caveats in relation to the primary dwelling are met. Others start with those basic standards and then layer on extra requirements that can make it challenging to create an ADU,” observes AARP in their deep dive into the topic, “The ABCs of ADUs”. Many cities now allow ADUs, including Anchorage, Atlanta, Annapolis, Asheville (N.C.), Austin, Denver, Honolulu, Houston, Louisville, Philadelphia, Phoenix, Tucson, Seattle, and Washington, D.C. 

Photo Courtesy of Bunch Design / By YerinMok

Making it Easier

The approval process can be lengthy. To facilitate this, some cities are creating pre-approved plans for the dwellings. In January 2023, Sacramento released permit-ready, one- and two-bedroom ADU plans that meet all local residential building code requirements and are all electric. In 2021, Los Angeles created a program offering more than 20 different designs that incorporate elements of diverse architectural styles in the city. There are one and two-story plans, some with roof decks. 

Photo Courtesy of Bunch Design

“Creating pre-approved plans streamlines the development process for these housing types; residents can immediately begin seeking a permit after submitting a site plan. Additionally, at 750 square feet, the plans are not subject to impact fees,” says Nicholas Julian, program manager of land use for the National Association of Home Builders. 

For anyone looking to create a new structure, options range from prefab homes, often produced by notable designers and architects, to custom plans. 

“All of our ADUs are built from the ground up and are referred to as stick-builds,” says Hedden, who compares them to small custom homes. “With the help of our designers, our clients select their own flooring, cabinets, countertops, etc. Clients can choose to include a tile backsplash in the kitchen and tiled showers with niches. We recommend cathedral ceilings, which give the ADUs an open, airy feel. Many clients love the exterior farmhouse look, which we provide if it is acceptable in that city. Clients can choose high-end finishes with engineered hardwood floors, black matte hardware and fixtures, and high-end quartz countertops.”

Costs vary depending on size, number of bathrooms, location of utility connections, the type of finishes and locations. Permits and fees tack on additional dollars. 

Photo By Parrish Ruiz De Velasco
Photo Courtesy of Bunch Design

Costs and Locations

Not only do these secondary dwellings offer the potential for rental income, but recent changes in FHA policy allow a substantial percentage, as much as 75%, of rental income to qualify for a mortgage. Loans for new home construction can also include an ADU, which, according to the National Association of Home Builders, allows new homes to be built with ADUs from the ground up.  

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Luxury cabin on the water

Hidden Gems: Unique Discoveries Redefining Luxury Real Estate

A Unique Discovery In A Serene Space

ELMNTL provides unique discoveries offering of completely customizable dwellings that connect you with nature. Whether you’re dreaming of a specialized sauna, a bespoke cabin for guests, or extra living space, this one-of-a-kind platform brings your unique vision to life. The goal is to foster a love for the fragile, wild, natural world. “To us, a cabin or sauna is an extension of nature itself, so we build with a spirit of adventure, fun, and obsessive care for the environment,” says CEO Vlad Dubovskiy. It’s the company’s innovative turnkey system that also makes the process efficient, and exciting.

Take Me on a Story

2020 Shutterstock/Courtesy of Black Tomato

What’s better than a childhood classic? These immersive journeys allow favorite tales to leap right off the pages. With custom-tailored trips that celebrate classics such as “Call of the Wild” (Alaska), “Alice in Wonderland” (Oxfordshire), “Treasure Island” (British Virgin Islands), “Journey to the Center of the Earth” (Iceland), and others, the travel experts at Black Tomato bring beloved stories to life by following in the footsteps of your favorite characters.

Next-Level Fitness

Even the most well-equipped home gym will be elevated with handcrafted gear from Pent Luxury Fitness Equipment, often considered the pinnacle of fitness luxury. Choose a basic setup or outfit an entire gym or Pilates studio. The look, feel, and functionality of these products are sure to impress.

Photo Courtesy of PENT Luxury Fitness Equipment

Doing Good and Looking Even Better

Cesta bags have been celebrated in Vogue and Harper’s Bazaar, but the brand’s story is as compelling as the designs. Each piece begins its journey in the hills of Rwanda, where talented female artisans weave sisal into baskets. The handcrafted process continues in Italy, where each basket is transformed into a handbag using traditional techniques. Founded by two fashion industry veterans, Cesta Collective also has a strong environmental story.

Photo Courtesy of Cesta Collective

Masterpiece Within a Masterpiece

For the ultimate in quiet luxury, escape to 1 Place Vendôme, Paris, an intimate boutique hotel in an 18th-century building that houses luxury jeweler Chopard. Bearing the name of a gemstone, each room or suite is exquisite, but the true masterpiece is a secret sanctuary showcasing a Winter Garden by Fantini Mosaici. Here, a captivating landscape of peacocks, butterflies, monkeys, pandas, exotic birds, and tropical flowers awaits. Thousands of hand-cut tiles in sapphire, ruby, emerald, and gold tones adorn the walls, while turquoise stones form a mosaic floor that unfurls. The hotel might embody whisper-quiet luxury, but the Winter Garden is a stunning display of beauty and craftsmanship.

Photo by Gregory Copitet / Courtesy of 1 Place Vendôme

Rare Gems and Custom Designs In Unique Discoveries

More than 20 years ago, Monica Rich Kosann designed her first lockets to tell an individual’s unique story. Today, showcasing those memories and histories remains at the heart of MRK collections, which range from simple gold or silver pieces to those encrusted with one-of-a-kind rare gems. Perfect for gifting, the brand also offers options to create custom pieces that tell a truly unique, personal story.

Photo Courtesy of Monica Rich Kosann
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Luxury: Meet AI

Will AI totally remove agents from the real estate picture? Experts say, it’s not likely.

If real estate conferences are any indicator, artificial intelligence will be the major topic in upopming months, and chances are 2024 will be remembered as the year when the AI revolution began. Along with the usual round of market forecasts, the year began with a number of long-simmering issues bubbling to the surface, including commission lawsuits, a barrage of legal actions involving the National Association of Realtors, and a fledgling new trade association helmed by Jason Haber, an agent with Compass, and Mauricio Umansky, co-founder of The Agency.

However, AI will likely overshadow even these issues this year. In a recent survey of more than 130 brokerage leaders (representing two out of three transactions in 2023) conducted by

Delta Media Group, agent use of brokerage-provided technology jumped to No.3 on the list of the top five brokerage concerns. Recruiting new agents and figuring out how to counter eroding profit margins remained the top two, while the impact of commission lawsuits came in at fourth. “It’s no surprise that recruiting remains the largest challenge for real estate leaders and that the majority see the industry lawsuits as another top challenge,” says Michael Minard, CEO of Delta Media Group, one of real estate’s largest technology solutions providers. “What is a bit of a surprise is seeing the importance of agent tech adoption catapult into the top three business challenges. This indicates that real estate technology will be under a microscope in 2024, and it had better benefit the brokerage’s bottom line.

Work Smarter

Most industry experts see AI as a way for even elite agents to enhance their business. “The name of the game in real estate is to work smarter, not harder. Many great tech products have been made available for agents to streamline the process of home buying and selling — from DocuSign to virtual staging and virtual tours to automated marketing campaigns and much more. Now, with AI, there is even more opportunity for agents to use technology to their advantage and to work efficiently and effectively,” says Christy Budnick, CEO of Berkshire Hathaway HomeServices.

Unlike earlier tech innovations, few anticipate AI will eclipse the agent. “If anything, I see generative AI enriching the relationship between the agent and client by streamlining processes and personalizing the luxury real estate experience even more than it is now,” says Michael Altneu, vice president of Coldwell Banker Global Luxury.

In their 2024 trends report, Coldwell Banker Global Luxury shares, “With its immense availability of data, generative AI has the power to be as disruptive to luxury real estate as the internet was decades ago,” a thought echoed by many property technology experts. Expectations are that AI will streamline mundane tasks associated with buying and selling, including the closing and underwriting process. Generative AI will lead to more precise market analyses, pinpointing trends as they gain momentum. Other benefits include price evaluation, targeted marketing strategies, predictive analytics, and enhanced virtual tours and videos.

Generative AI, a subset of AI, uses machine learning to analyze text or other input and convert it to images, per Dave Conroy, NAR’s director of emerging technology. Images produced by generative AI create fantasy homes online; real-life applications include virtual reality and video.

Rajeev Sajja, senior vice president of Digital Marketing and Innovation at Berkshire Hathaway HomeServices Fox & Roach Realtors, ticks off AI’s potential and current benefits, particularly generative AI. In addition to content creation, he points to business productivity, including goal setting, business planning, generating ideas, and the “whole journey of the listing, including lead generation.” He emphasizes the ability to leverage generative AI to create video.

All these applications drive more exposure for the Realtor and their brand. Already, AI is integrated into some applications such as CRM, something Sajja anticipates will become widespread.

When proptech, especially virtual showings, first came on the scene, it elicited predictions of the agent’s demise. Even though the vast majority — approximately 97% — of buyers begin their search online today, an equally high number use an agent, a number that has consistently grown over the years.

“Because real estate is still a very human-centered, emotion-led business, I don’t see AI doing the full scope of the work of an agent, rather handling the transactional, information analysis work. Agents help people make the most important transaction of their lives, managing relationships and incredibly nuanced situations, which is not something technology can replace but instead can enhance,” says Altneu.

 

Power of AI

“There are so many ways to leverage AI,” says Meghan Barry, president, Who’s Who in Luxury Real Estate and LuxuryRealEstate.com. “Things as simple as providing the framework for property descriptions, website content, press, drafts of complicated communications to clients, and assisting with legal or contractual language. AI has so many day-to-day uses, but it can’t be a replacement for humanized high-touch service; it should always be a first step that eliminates the busy work.”

Good to Great to Exceptional

Goodfellow sees generative AI as still in its infancy, but he foresees powerful applications for real estate, such as immersive videos.

Tami Simms, a trainer for the Institute for Luxury Homes Marketing, says: “Most real estate agents think of AI as a resource for copywriting and not much more. While it can be a tool for that, I see the real opportunity as one of efficiency — extrapolating and analyzing information, managing databases, and streamlining operations that allow a professional to focus on what they do best — cultivating personal relationships with their sphere of influence.”

AI’s benefits also extend beyond an individual to teams. “It all goes back to an agent’s business model” and having quality people on the team, says Goodfellow. Then, as AI takes over tasks, agents can move that team member to a more productive use.

It IS Personal

“There is nothing more personal than buying or selling a home. No matter if it’s $200,000, $2 million, or $20 million,” shares Budnick. “Every buyer evaluates a home for how their family would live in it and enjoy the space, including the surrounding community. On the seller’s side, bidding farewell to a place a person has called home can be very emotional — no matter the reason for the move. Nothing can replace a trusted advisor during these high-emotion and high-stress times.” Recent brand campaigns such as Berkshire Hathaway HomeServices’ “Real Stories About Real Estate” put the personal element into focus by showing how agents go beyond just showing houses.

Some fears regarding AI in real estate may be justified, but from today’s perspective it seems eliminating the agent is not one of them. If anything, elite agents expect that AI will only boost personal connections with clients and other agents.

 

 

 

 

Luxury: Meet AI

originally appeared in

Unique Homes Spring 2024.

 

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Wallpaper’s Wizardry

Arabella by Tempaper. Photo courtesy of Tempaper. 

Penchants usually gravitate to the latest and greatest, but one tried and true material continues to be a magical catalyst for lifestyle.

 

Subtle or bold, classic or contemporary, shiny or opaque, wallpaper has evolved to be design’s magic wand — able to add pizzazz, lend a mellow undertone or inject just the right touch of coziness to any room.

Uniquely versatile, it enables consumers to fashion an interior that captures their individuality. It allows for unlimited customization as well as the creation of personalized living spaces, even adapting for children and pets without compromising on aesthetics. And for every budget from DIY to bespoke, there is a product.

 

“People want to LOVE their home. They want comfort and convenience, but do not want to sacrifice chic,” says San Francisco designer Jay Jeffers.

“There is a strong desire among consumers for original, authentic design that goes along with their vision for their house,” explains Joyce Romanoff, CEO of Maya Romanoff, a manufacturer of luxury wall coverings.

Ask designers about wallpaper and they invariably chorus, “it’s not your grandmother’s wallpaper,” a truism heard so frequently that it’s almost become a cliché. What is truly amazing is how much wallpaper ends up in homes today, adding a visual depth impossible to achieve with paint. Murals are back. So are individual walls showcased with a stunning texture or print.

And walls are only the beginning of today’s wallpaper story. “Trends indicate that the consumer is looking to personalize space through the creative use of wallpapers beyond the walls. Backings for bookcases, shelves, customized furnishings and ceilings all enter the realms of possibility.

While full room wraps, murals and feature walls still dominate the world of captivating designer installations, these small impact pieces allow for strong style statements without huge pattern or space commitments,” explains Carol Miller, content marketing manager for York Wallcoverings, a manufacturer with 125 years of innovation.

If the mention of wallpaper conjures visions of the flat, one-dimensional rolls common little more than 10 years ago, it’s time to refresh that image. “For many years wallpaper was something many of our clients avoided, but today, it is being rediscovered as an exciting way to introduce the color and patterns many homeowners are now embracing. And there are more wallpaper options out there than ever, thanks to advances in technology,” shares Elissa Morgante, founding partner of Chicago architecture and design firm Morgante-Wilson. 

Dating back to decorated rice paper in China as early as  200 B.C., wallpaper has a long history that continues to evolve, with each century, each decade, adding innovations in materials, finishes, production methods and artistry. The most recent reinvention of wallpaper began more than a decade ago, but changes over the last few years have been especially remarkable. Old-school techniques such as block printing and silk screening continue, but the end result seems entirely new. Modern machinery creates precise designs, and new dyes impart richer vibrant hues. Diverse materials from wood and sand to crystals, shells, fibers, beads, even glass add depth. 

Left: Jewel Tones; Middle: Metallic; Right: Soft Organic

Wallpaper sample photos courtesy York Wallcoverings.

“Manufacturers can now digitally create the beautiful, luxurious look of expensive hand-painted or hand-blocked papers, or embed wallpapers with materials such as mica, glass beads, or even capiz shells to add interest and texture,” says Morgante. 

“Over the last decade, we have diversified our product mix by expanding the types of materials we use. We have focused on making our processes more efficient, cost-effective and sustainable, while maintaining our handcraft and luxury appeal,” explains David Berkowitz, EVP of product development at Maya Romanoff, the largest manufacturer of handcrafted wall coverings in the U.S. Their gallery includes wool, burlap, silk and other natural fibers as well as precious metals and wood. Designs are often intricate, requiring an artisan’s touch. For example, papers in the precious metals collection often employ a time-honored method in which metallic leaves are hand applied to a paper backing with chopsticks. An ultra-modern topcoat prevents tarnishing or oxidizing, allowing for easier maintenance.

Textural papers continue to be in demand. The effect can be rustic or refined. In addition to traditional hemp, jute, sea grass, bamboo and raffia, grass cloth might integrate a variety of other materials. Additionally, says K. Tyler, partner and designer at Morgante Wilson, there are woven papers that look like linen on the wall or a variation of silk.

Schemes inspired by traditional designs (dare we mention chintz) have returned, but today’s execution is nothing like the dingy muted tones of yesteryear. Colors are vibrant, often using multiple shades of the same hue. Botanicals have also blossomed into an important trend, inspired by a growing passion for nature and biophilia. Look for splashy leaves and fronds or impressionist-inspired trees and flowers in soft tones. “I am also seeing a change from the crisp, bold large-scale patterns into a more abstract brush-stroked look. But with some of these styles, you’ll need to be aware you won’t have a side match, and each panel is distinguished,” says Christopher Grubb, president of Arch-Interiors Design Group in Beverly Hills.

Top left: Precious metal inlaid; Top right: Hand-finished wood veneer, Ajiro Fanfare. Bottom: Tribal Print from Ronald Redding Handcrafted Naturals collection.

Photos of wallpaper production and sample by Maya Romanoff.

“There are so many things technology has allowed us to do today. We can do wall covering now that looks like the real material, but it’s made out of vinyl,” says Tony Sutton, owner of Est Est, Inc., an award-winning design firm in Scottsdale. Sutton illustrates with examples of wallpaper made from ultra-thin cork or micro-layers of slate. Additionally, he says, “I can take any photograph and then make a giant custom wallpaper out of it.”

Options today range from rugged vinyls to bespoke designs and hand-painted silks with prices that can exceed $1,000 a roll. “Vinyls are typically less expensive, but super durable. Many of them are rated for commercial use and sold in wider widths,” says Mondi.

“I am a huge fan of using vinyl wall coverings,” says Grubb, who does commercial as well as residential projects. “The color palette is enormous. There are silk and grass cloth looks, wovens, textures and embossed patterns. It’s incredibly durable and easy to maintain.”

“On the other end of the spectrum, you would find hand-painted wall coverings. There are custom made, high-end and truly artisan products that typically replicate a faux finish or mural. In between is where most wallpapers reside. Digital printing is typically very affordable and can often be done on different background materials,” says Mondi.

Design is only part of what consumers want. Sustainability and ease of use are equally important. Upmarket to DIY consumers demand sustainability, which includes efforts to minimize the footprint of manufacturing, observes Miller. Beyond no VOCs, ozone-depleting chemicals or cadmium or mercury, York Wallcoverings also uses water-based inks and coatings and smokeless, non-polluting inks. Additionally, there is a push toward sustainable materials, including cork, natural grasses, leaves, wood veneer, even glass beads made from recycled windshield glass.

Ease of Use

“Now every level and type of wallpaper concerns itself with ease of application and removability,” says Miller. “Even nonwoven unpasted backings used most often by designers remove in full strips.”

A potential game-changer for the industry came with Tempaper, which has revolutionized the concept of peel and stick papers. There is nothing stodgy about these designs, which run the gamut from traditional classics such as chinoiserie to glam to bohemian. They also tap into creations by well-known designers such as Bobby Berk and Genevieve Gorder. The company also offers panels and murals as large as 8 feet by 10 feet. Some designs such as Arabella, part of the Zoe Bios collection, are inspired by artists such as Jean Michel Basquiat.

Founded by twin sisters Jennifer Matthews and Julia Au, Tempaper is an ideal solution for someone renting, as designer Jewel Marlowe discovered. “Recently we rented a high-end beach home in Jamestown, Rhode Island, for 10 months. This was just long enough that I wanted to add some personality to some of the spaces in order for it to feel like home. However, I was very aware that whatever I used needed to be quickly removable. Luckily, I found some beautiful Tempaper designs to personalize and beautify some of our rooms,” she shares.

Birds are flocking to wallpaper this year. Graham & Brownexpresses this theme in Tori Teal.

Photos courtesy of Graham & Brown.

New additions to Tempaper’s line up include designs from Wright Kitchen and holographic decals from Bobby Berk. This year, the company also introduced a collection of vinyl floor rugs.

Tempaper does seem to add a “now you see it, now you don’t” ability to wallpaper’s extensive resume, making it a truly magical material.

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Culinary Nirvana by Unique Homes

Culinary Nirvana

Trending at high-end resorts: Events designed to showcase iconic cuisines and local talent.

The concept of bringing notable chefs together in a resort locale was pioneered at the food Aspen Food and Wine Festival in 1983 to pump up interest in the summer season. Similar events blossomed in other resorts, becoming a yearround occurrence. It’s a trend perfectly aligned with the growing spotlight on food and beverages among resorts.

Referring to Hualālai, a private luxury resort community on the exclusive Kona-Kohala Coast of Hawai’i Island, Rob Kildow, director of sales at Hualālai Realty, says, “The community we’ve built is very food savvy, and our team works hard to ensure we bring creativity to our events. In addition to winemaker dinners and festivities during standout holidays, we’ve seen significant turnout to our seasonal event series, including themed dinners celebrating everything from Greek and Mexican cuisine to seafood, taking inspiration from Pike Place Fish Market, to cooking classes put on by our very talented culinary team, and more. These sell out rapidly, showcasing member engagement and excitement for events of this nature.”

“Today’s affluent travelers are more interested than ever in gastronomic experiences. They seek immersive experiences with delectable cuisine and artful cocktails and featuring chef engagement and unique experiences,” says Greg Cook, general manager of The Ritz-Carlton Amelia Island. Cook and his team are gearing up for the resort’s inaugural culinary happening, the Amelia Island Cookout, in late October, featuring a variety of lavish, interactive dining experiences, gourmet wine pairing dinners and a Chef’s Theater cooking demo. The highlight of the event will be a huge oceanfront cookout helmed by local and national talent.

Grand Cayman Saint June at Sunset

Gastronomic Immersions

 

On Grand Cayman, plans for the 15th annual Grand Cayman Cookout at The RitzCarlton on Seven Mile Beach are underway. Once again, legendary Chef Eric Ripert, of Le Bernardin and the resort’s restaurant Blue, has tapped a star-studded roster of talent, including Jose Andres, Kristen Kish, Emeril Lagasse, Andrew Zimmern, and stellar mixologists. Expanded to five days in 2024, this event has garnered a reputation for extraordinary food and beverage experiences while raising funds to support World Central Kitchen and the Cayman Food Bank.

Food might be the centerpiece, but it’s only part of this extravaganza, which includes beachside demonstrations and tastings, music, poolside cocktails, brunches and a monster cookout along the beach. Interactive workshops offer an opportunity to learn new techniques. Sessions on food and beverage pairing provide insights into matching flavors as well as innovative gastronomic combinations.

Those who attend say one of the best aspects is the repartee with chefs. Last year, a sunset sail on a catamaran sipping Moët & Chandon was an option. This year, it will be an excursion on a private jet with Ripert to Cayman Brac for an immersive farmto-table experience. Once again, London artist Louis-Nicolas Darbon will create limited edition pieces to be made available through a silent auction, with proceeds going to the Cayman Food Bank.

Cork Fork

Brunches that Give Back

 

Bespoke programming has been a signature of the Four Seasons Resort Hualālai. The resort’s Winemaker in Residence offers intimate tastings and one-on-one interactions with a renowned vintner in a series of three events. Executive Chef Richard Polhemus prepares a creative menu for each, emphasizing sustainable practices and sourcing 75 percent of all ingredients from Hawaii. Statewide, the Hawai’i Food & Wine Festival occurs over three weekends, beginning October 13 across three islands.

This year’s festival features over 90 world-renowned chefs and dozens of celebrated sommeliers, winemakers and mixologists. Events range from walk-around tastings to VIP gourmet experiences to wine-paired dinners and brunches. Not only does the event celebrate local agriculture, but to date has donated over $3.4 million back to the community.

Females Firing It Up

 

In partnership with the James Beard Foundation, Michigan’s legendary Grand Hotel on Mackinac Island celebrates female culinary and beverage talent at the second annual Cork & Fork Festival, a three-day event in late September. The Grand Hotel’s Master Sommelier Elizabeth Schweitzer will offer curated wine pairings and lead tastings throughout the weekend, featuring wines from the property’s 500-plus-bottle wine cellar.

Schweitzer is only the eighth woman in the world to achieve Master Sommelier status. The award-winning chef lineup draws from Minneapolis, New Orleans, Las Vegas, Chicago and Atlanta. The highlight of the weekend is a six-course signature “pink tie” dinner benefiting the Susan G Komen Foundation. Golf and food seem unlikely bedfellows, but that’s the focus of Punta Mita’s annual Gourmet and Golf. Here three different resort properties collaborate to stage the multi-day event in December 2023

At Friends of James Beard Weekend, Paws Up guests in Montana taste innovative culinary<br />
dishes plated to perfection.

Not all festivals center around beaches and greens. Paws Up, a 37,000-acre (about 60 square miles) uber ranch resort in the Montana wilderness celebrates a different kind of green. Culinary happenings here abound, keyed to the season. Montana Master Grills, Fish and Feasts and Wonder Women of Food and Wine are a small sampling. The James Beard Weekend, October 13 -15, brings together culinary talent from across the county.

Few other happenings seem to be proliferating as rapidly as culinary events. How many more will be on the menu in 2024?

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Deciphering the NAR Settlement

Does the NAR settlement change anything or everything?

Perhaps March 2024 will be remembered as the month that turned real estate on end. Or perhaps not. The National Association of Realtors agreed to pay $418 million in damages and agreed to changes in rules regarding cooperative broker compensation. National news headlines are hailing the end of commissions as we know them. But industry experts are seeing it differently and debating what the lasting impacts will be.

Interestingly, the disputed rule regarding cooperative compensation was introduced in the 1990s in response to calls from consumer protection advocates regarding buyer representation. 

Comments from the National Association of Realtors emphasize that the current rule sparking litigation “requires only that listing brokers communicate an offer of compensation” to cooperating agents. “That offer can be any amount, including zero.” Per NAR, the new rule, which could take effect as soon as July, prohibits offers of broker compensation on the MLS. The association also underscores that commissions have always been negotiable. 

Already, many brokerages require buyers who work with a buyer agent to sign an agreement, but the proposed new rule would possibly require consumers to sign such an agreement early in the buying process, even before touring properties with that agent. Also, the issue of compensation will have to be addressed in such agreements.

Mark Moffa, longtime Unique Homes managing editor and a Realtor with Berkshire Hathaway HomeServices Fox & Roach, Realtors, in the Philadelphia area, expressed dismay at the headlines and coverage of the settlement.

“As a journalist at heart, I’m usually defensive of the media,” Moffa said. “But the headlines and coverage of this story have been so irresponsibly misleading. While the settlement still has to be approved, at this time there would seem to be two significant changes as a result. One is that offers of buyer broker compensation can no longer be made within the MLS — but they can and will still be made and conveyed via other means such as agent websites, so the impact of this might be minor.” 

“The other is that buyer agents will need to have contracts with their buyer clients, and those contracts will have to address compensation in more detail than simply saying that buyer broker compensation will be whatever amount the seller is offering. Buyer agents will not be able to earn more than what is in the contract with their client,” Moffa added.

Moffa notes that this presents interesting dynamics, such as what happens if a buyer agent contract calls for 2.5% compensation but a seller is offering 3%? Does the selling agent get the extra? Does the seller get it back? That answer will depend on the terms the selling agent has agreed to with their client, an interesting new wrinkle for seller agents about which there has been little coverage.

“The bottom line is that buyer agents are going to have to do more work up front with their clients, and be more nuanced and more involved in compensation negotiations than they have in the past,” Moffa said. “But does this mean that seller compensation to buyer agents is going away? Not at all. The fact remains that in most cases, the sellers will continue to have a greater ability to pay the commissions than the buyers. And if you’re a seller, you want your house to be available to the largest pool of buyers possible. If you’re selling and not offering buyer broker compensation, but the other sellers on the market are, then you’re at a disadvantage.

“Market dynamics will continue to drive the economics of home selling and buying,” he added. “Studies quoted in the media about this settlement touting a big decrease in commissions are from when the verdict was announced in November and are presuming a complete decoupling of commissions. That is not what this settlement does.”

The one thing the settlement has evoked is widespread speculation regarding outcomes. Speculation includes lowering commissions on both ends of a transaction, fewer buyers using an agent, unbundling services, allowing buyers to pick and choose agent services and fees, and an increase in the number of homes marketed outside the MLS. Clearly, the potential to recalibrate the transaction is considerable. 

“The proposed settlement could still let the seller offer money for a buyer to allocate to the buyer’s agent, and it doesn’t prevent that offer from being included in general-purpose listing-database fields. In the same way, a seller might acknowledge a defect in the roof that will have to be repaired, a seller can anticipate that a buyer will have to pay her agent 2.5% of the sales price and promise to support that fee in agent-only remarks,” commented Glenn Kelman, CEO of Redfin

While NAR’s settlement covered a majority but not all the association’s members, suits against large brokerages remain. A week after NAR’s judgment, Compass agreed to settle commission lawsuits for $57.5 million. RE/MAX, Anywhere, and Keller Williams Realty have also reached settlements in similar suits. 

Clearly, it’s going to take time for these changes to play out.

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Historic Sale in Southampton

The recent record sale at auction of La Dune, an iconic oceanfront estate in the Hamptons, rocked the luxury world. Comprised of two remarkable homes designed by legendary architects Sanford White and Francois Cartroux, the 366 and 376 Gin Lane four-acre estate offers unparalleled beach access with approximately 400 feet of beachfront and breathtaking ocean views. 

The property might seem familiar to Unique Homes readers. Once the most expensive listing in the Southampton area of Long Island, it was featured among the top 10 in our annual Ultimate Homes list of the most expensive in the U.S., first appearing, priced at over $100 million, in 2017. The recent auction fetched $88.48 million, making it the most valuable property ever auctioned live at Sotheby’s. 

“The remarkable final sale price for ‘La Dune’ reflects its stunning design, exclusive address, and historic pedigree,” said Chad Roffers, founder and CEO of Sotheby’s Concierge Auctions. 

“I am pleased to have partnered with Sotheby’s Concierge Auctions on yesterday’s sale of the iconic ‘La Dune’ residence,” stated Harald Grant. “This extraordinary oceanfront compound represents one of the finest offerings in the Hamptons; it is no surprise that this auction resulted in a record sale.” Along with Grant, Tim Davis of The Corcoran Group and Cody Vichinsky, president and founding partner of Bespoke Real Estate partnered on the sale.  

This property was part of Visions of America, a Sotheby’s week-long series showcasing the heights of American craftsmanship in the finest art and objects and streamed live.

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The Transition

Cover photo ©istockphoto.com / Evgeny Zhigalov

Of all the changes brought on by the pandemic, what is here to stay?

From a drone’s eye perspective of 50 years, real estate might resemble a Mobius strip, a never-ending roller coaster of ups and downs with each boom-and-bust cycle sparking small changes and adaptations. But none have had an impact comparable to the pandemic, which ushered in an avalanche of innovation, new ways of doing business and a profound shift in consumer values. Some effects are a temporary response, while many reflect a significant transformation.

“The way that real estate as an industry operates has changed, and I believe it is a microcosm that can be applied to 90 percent of the economy out there. No one is going back, and that means the way we live, work and play changes forever,” observes Marci Rossell, former CNBC chief economist and chief economist for Leading RE. “COVID drop-kicked us into 2030.” 

Ask agents if any prior cycle compares to the experience of the last year and a half, and they will tell you the pandemic boom is unparalleled. “I don’t think any Realtor in the country has had the experience we’ve had this last year! Yes, there have been good upticks in certain years in certain places, but never anything like this!” shares Trinkie Watson with Chase International in Lake Tahoe.

“We’ve certainly seen periods where you had to pivot skill sets and be really aware of the market and things that would impact clients, but we’ve never seen anything like the last year and a half, (and) that’s been compounded by a lack of availability,” shares Tami Simms, with Coastal Properties Group in St. Petersburg, Florida, who is also trainer for the Institute for Luxury Home Marketing.

“I think that last year was the most significant year of change from a tech perspective,” says David Marine, chief marketing officer at Coldwell Banker Real Estate. The pandemic market accomplished what major brands had been working on for years. “In 90 days,” he says, “every single real estate agent figured out a way to move the transition online. Now it’s commonplace. It’s no longer an issue.”

“Agents basically skyrocketed 10 years into the future, and they did it in a two-month period,” says Rossell. Rather than an abrupt switch, industry experts see real estate’s seemingly overnight embrace of new technology as acceptance of tools already available. Think of it as “escalating trends that were already underway that would have happened, but they are going to happen almost a decade faster than anyone expected,” explains Rossell.

Will it be a virtual world?

Prior to what Simms dubs “the Zoom age,” she says, there wasn’t a widespread understanding or trust or proficiency with virtual apps. “Now,” she says, “we know how to use it. We’re reasonably proficient at it, and there’s a level of trust. So, we’re able to embrace this technology. You know I don’t ever want to go back to having to communicate with out-of-state buyers purely by telephone.”

Virtual Sales are touted as the main advancement sparked by the pandemic, but an even greater benefit has been an industry-wide recognition and adaptation of virtual apps to enhance and expedite the process from initial views of a property to consumer education. “FaceTime is an effective tool, but really more to give a prospect a better idea of the home, not to induce an offer … though it could,” says Watson. 

Looking ahead, agents don’t expect virtual sales to disappear, but they will continue to be a rarity. “I don’t think we’ll see many escrows where the buyer hasn’t physically seen the property. Yes, Zoom and similar will continue to be a part of our lives. Also, more defined photography for our listings … the importance of a comprehensive ‘walk through’ so prospects can get a good feeling for how the house flows,” says Watson.

Detailed virtual walk-throughs became more important than ever, with platforms such as Matterport leading the way. 

©istockphoto.com / fizkes

“In-person viewings have been very limited. No one wants to go to open houses. No one is walking about a house just for fun. People are looking online. They are viewing the pictures of a listing maybe 10 times before they see a house. So, a showing is more like a fourth showing, and agents need in-depth knowledge of a property,” says Joanne Nemerovski, with Compass in Chicago.

©istockphoto.com / joakimbkk

Dreaming of Home

The ability to work remotely is often cited as the main driver for the surge in sales, but even more fundamental are new consumer values regarding home and lifestyle. Citing millennials, who now comprise a substantial portion of buyers, Nemerovski says many were starting careers and literally were never home, so home basically was a shoebox they visited. “I think that sentiment has changed. Home is where the heart is. It has become the center of people’s lives. People are also more respectful of their homes.”

Everybody wants their dream home,” says Frank Aazami with Russ Lyon Sotheby’s International Realty in Scottsdale, Arizona, “because they just cashed out of another home that maybe they inherited or maybe were there for 20, 30 or 40 years.”

Buyers’ expectations of quality are high and will continue to be so. “People understand the level of finishes better than ever before. We’ve gotten so much better with respecting architects, good architects’ work, good designers’ work,” he says.

“All of a sudden, consumers are finding that now it’s not all about a commute. It’s about ‘does the place that I live offer me the things that I want to do when I have a little extra time, both inside and outside.’ Outside spaces have always been a luxury item, but more so now than ever,” says Simms. Topping wish lists are beautiful recreational facilities, inside and out. Also becoming more desirable is access to nearby outdoor venues such as parks and trails. Before COVID-19, outdoor living was a growing trend; now a connection with nature has become almost an essential for homes, particularly new construction.

Skills Put to the Test

With properties selling days or hours after going on the market and multiple platforms broadcasting new listings, it would seem agents’ skills are not essential. However, the pandemic market has proved the opposite. “It’s been a really intense time for real estate professionals in terms of making sure that their communication skills are absolutely the most important thing that they have, setting expectations, both on the seller side and the buyer side,” says Simms.

“There’s more attention to vetting prospective buyers, making sure they are qualified to buy before showing them property,” adds Watson.

Price is only part of an offer’s appeal to sellers, and crafting a winning offer has been an important skill for agents and buyers in the current market. Even when multiple offers become less of the norm, this aspect of buying will continue to be important.

An intense market tempts buyers to forgo contingencies. “It has been definitely challenging to counsel people on strategies to be successful in acquiring properties, but also in making sure that they truly understand the ramifications of releasing contingencies and know the risks they are taking on,” shares Simms.

“A downside of the intensity has been buyer’s remorse, cancellations before closing, some attempted lawsuits … a result of no inspections, jumping too fast without thorough exploration, et cetera. This would be a small percentage of the purchasers, but certainly a reflection of ‘herd mentality’ going the wrong way!” says Watson, referring to the pressure buyers felt to make a decision.

Cooldown Ahead

With days on market hovering just over 14 in July, prices rising in 99 percent of all metro areas, and double-digit price increases in 94 percent of metros (according to NAR), the current pace might seem no less fevered. Still, indications of a transition are beginning to filter out from a number of locations. Days on market are increasing ever so slightly, and overblown prices are being reduced. Or, as Katie Treem at Keller Williams Realty in Portland, Maine, explains, it might be that a property receives 20 offers instead of 40. “We’re still seeing people moving from New York, Boston, Connecticut and D.C.,” she says.

Also, agents like Treem are just beginning to see a few who bought in 2020 reselling. Sometimes they improved the property, but in others, decided the lifestyle was not what they desire or the commute, even for occasional days in the office, was too difficult.

In Tahoe, Watson says, “I believe the intensity has certainly calmed down, and I suspect very few listing agents will accept an offer from a buyer who hasn’t physically viewed the property. That goes for waived inspections … I’d be surprised if many are doing that any longer.”

No Bubbles Here

Bubble talk has become almost a perennial for real estate, but experts such as Rossell do not subscribe to this characterization of the market. Rossell says, “It’s not a bubble. It’s simply real demand bumping up against severe supply constraints. But this doesn’t mean house prices continue to go up. But what it does mean is you’re very unlikely to see the bottom fall out of the market, the way that you did in 2007, 2008.

“September 11 forever changed the way that we thought about terrorism. And I think in the same way, the first round of COVID in March of 2020 forever changed the way that we thought about public health, and pandemics. I think we’re all going to be living with the reality that at any given time something like this could happen, just like terrorism.”

Days on market are increasing, and overblown prices are being reduced. It might be a property receives 20 offers instead of 40, says Katie Treem at Keller Williams Realty in Portland, Maine.
 

©istockphoto.com / sara_winter

This story originally appeared in Unique Homes Fall ’21. Click here to see the digital version.

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The Legends of Ultimate Homes

The Manor from Unique Homes 2017 Ultimate issue.

Photo courtesy Hilton & Hyland.

As we mark the 17th “Ultimate” edition of Unique Homes, we look back at the exceptional properties and agents who have been a part of the annual celebration of the most expensive real estate in the U.S.

Over the 50 years since the first issue of Unique Homes rolled off the presses, countless estates have graced our cover. Hundreds have captured a top position on Ultimate Homes’ list of the most expensive, but only a very few are real estate legends. Trackback through record-setting sales and property listings, and a handful of properties filter to the top, including an equally select cadre of real estate agents.

What destines a property for legendary status? Rarity, provenance, architecture, land and location all play a role. “We have represented and sold many properties that are above and beyond, but what makes them legendary is the architecture and the history of the property, including notable prior owners, location, and the property amenities that set the bar for other luxury properties,” explains Judy Zeder, a member of the Jills Zeder Group (along with Jill Eber and Jill Hertzberg) with Coldwell Banker Realty in Miami.

“What truly makes an incredible luxury property is that it’s something that someone else would never have. It’s not just another house with a different material feature,” shares Shari Chase, founder of Chase International Real Estate in the Lake Tahoe/Reno region. “Rarity is huge,” she says, as is “not being bumper to bumper with a lot of mega mansions that are exactly the same.”

The 2016 sale of the Playboy Mansion cracked the $100 million benchmark in L.A. 

Photo by Jim Bartsch.

Owlwood, Pickfair, Le Belvedere, Greenacres and Chartwell: the list of legendary properties that Joyce Rey, who heads Coldwell Banker Global Luxury’s division for Southern California, has sold is only surpassed by the number of accolades she has received over her more than 40-year career. Her sales have achieved price records multiple times, sometimes for the same property. In 1976, she sold the Sonny and Cher mansion for $1.2 million, a record at the time. Two years later, she sold it again for $4.2 million, which surpassed all other prices, setting a new high in the U.S. and worldwide. “It was a really big deal,” she says. “It changed the marketplace.”

The storied history of this property, which was renamed Owlwood to honor owls living in the estate’s towering trees, continues to the present day. The acquisition of neighboring properties and additional acreage over the years enhanced the value. Last offered for sale well above $100 million, it appeared on Unique Homes’ Ultimate list last year at $115 million. It sold in December in an off-market transaction for a reported $88 million.

Once dubbed “the Crown Jewel of Beverly Hills,” Owlwood’s resume includes a number of other high-profile names and celebrities, including Marilyn Monroe.

Ultimate Manhattan? The Tommy Hilfiger penthouse at The Plaza in New York City graced the cover of Ultimate Homes in 2014.
Casa Casuarina, seen here on the Unique Homes Fall 2012 cover, was the home of Italian fashion designer Gianni Versace.

Having a much-loved celebrity often adds to the cachet of a property. “Americans love celebrities,” says Jill Eber. “When a celebrity is comfortable using their name in connection with a property, it really makes a difference. Every home comes with a story and a celebrity’s story just makes it more interesting. A lot of properties are sold by very successful business people and the properties are just gorgeous, but when a home is sold by a celebrity or athlete, buyers are curious and sometimes they are attracted to that cache.”

Few celebrity homes received as much buzz as the Miami Beach mansion owned by the late Gianni Versace. “Everything about the Versace property, known as Casa Casuarina, was fun and exciting,” says Jill Hertzberg, who, along with Eber, sold the property. “It was a totally iconic property known worldwide. Every room was different with the most extraordinary mosaic tile designs throughout. The property was built for fun and entertainment and the buyers who purchased it just loved it! They all jumped into the pool on the day they got it. Standing in front of the mansion with reporters from all over the world is something I will always remember.”

Among our Ultimates, few have generated as much interest as The Manor, dubbed The Spelling Manor when it came to market in 2009 at an unprecedented price of $150 million, eventually selling for a reported $85 million in 2011. The buyer, Petra Ecclestone, daughter of Formula One billionaire Bernie Ecclestone, embarked on an extensive remodel, eventually bringing the estate back on the market in 2016 at $200 million. The 2019 sale price, $119.7 million, set a new, but short-lived, record for Los Angeles. Only a few months later, another legendary property, Chartwell, sold for a reported $150 million, achieving a new benchmark. 

Designed by Sumner Spaulding in 1933, Chartwell, like several other legends, including the Manor, was inspired by French chateaus. Located on 10 acres in Bel Air and surrounded by pristine gardens, it ticks off all the attributes of a legendary estate. Although it is notable for the highest list price, $350 million, in 2017, few other mansions are as familiar to so many. Featured on the 1960s sitcom, The Beverly Hillbillies, it was home to the Clampetts.

It’s worth noting the estate is actually in Bel Air. The Bel Air Hillbillies might not have been as catchy a title as the Beverly Hillbillies, says Gary Gold, with Hilton & Hyland, one of the agents listing the property. Using a home at one address, but identifying it as being in another location in films and television is not unusual, according to Gold. 

Chartwell was listed by a team of agents including Rey and Jade Mills with Coldwell Banker Realty, and Gold and Jeff Hyland with Hilton & Hyland. When prices breach $100 million, it’s not uncommon to have multiple brokerages marketing the property.

“These big sales have many layers of complexity. It can be a trust, a bankruptcy or a probate, and everyone at this level is well represented. And at $100 million, no one is flexible,” explains Gold. Often the team of agents and brokers will divide the tasks depending on their expertise. Gold says he is always 100-percent committed to getting the deal done.

Having brokered the sale of the Playboy Mansion, Gold jokingly refers to himself as the “Roger Bannister of luxury real estate.” Like Bannister’s one-minute mile, the Playboy Mansion smashed the $100 million ceiling in L.A. and opened the door to a number of legendary estates trading at or over $100 million, including Chartwell and The Manor.

“These types of mansions usually come on the market once in a blue moon, once a decade, but recently a number have traded in the last couple of years,” Gold shares.

When it came on the market, the Playboy Mansion received lots of media coverage. Still, when Jade Mills, who represented the buyer, initially saw the property, she wasn’t expecting to find a zoo. The property had “been talked about, but not really the zoo and the peacocks and everything that was there,” she says.

“When I first went there, there were all of the animals, monkeys, peacocks were all over the property — I just thought that it was so amazing that right in the middle of Holmby Hills, you had all those fabulous animals. So, it was just fun to see, and to see the grotto.”

Gold says the number of birds increased over time as local avians decided it was a great place to call home and joined the menagerie.

Another interesting tidbit was an abundance of pushbuttons in this home, sort of a smart home before the era of home tech. For example, push a button and the bed would turn around. The grotto had an array of buttons, all glowing red, and a phone from which you could dial up whatever music you wanted

Foundation of Value

But for legends, it is the amount of land or an impossible-to-replicate location that usually sets them apart. A majority occupy sizable parcels, whether it’s hundreds of acres like Tranquility in Tahoe, or a dozen or less in Bel Air or Holmby Hills. The exception are places such as Malibu, where a setting on the beach is more prized and rarer than acreage.

“Regardless of the condition — like new, falling down or anything in between — each owner puts their heart and soul into these homes,” shares Robert Kinlin, co-owner of Robert Paul Properties, who works with some of the most expensive in Boston and on the Cape. “But a lot of times, people are buying the land and the feeling it evokes when they’re outside walking the property, because you can’t change the land, but you can change the house.”

“The biggest thing you can have with a beautiful estate is Mother Nature,” adds Shari Chase.

When Chase founded her brokerage in 1986, the word “luxury” really wasn’t part of the vocabulary. Instead, she says, “we talked about estates and extraordinary estates, and her tagline was Exceptional Properties for Exceptional People. “I wasn’t going to bother with just any kind of real estate. I only wanted the best, and whether I had one or two or three sales a year, it didn’t matter. I mean, as long as they were fantastic. I think the very first sale was lakefront.” Early on, Chase was involved in what she describes as “the most extraordinary sale we ever had at Tahoe,” the Thunderbird Lodge at a record $50 million. “It held the price record in the entire nation for over 8 years.”

Not often are newly constructed homes destined to become legendary, but Le Belvedere, sited on over 2 acres in Bel Air overlooking the city with a romantic landscape that includes a swan pond, rose gardens and a 280-degree panorama of city lights, is the exception. Over-the-top features such as opulent materials, a ballroom seating 200, a media room seating 50, and a 500-bottle wine cellar, were exceptional when it came on the market in 2009, but the way every detail is executed, the stateliness of the architecture and the sense of harmony from all facets working in perfect sync pushes it from a “stellar property” to a legendary estate.

Le Belvedere, like Tranquility, is also exceptional for its amenities. At that time, shares Rey, “people weren’t building so many of those major theaters. Before that, only those in the industry had large screening rooms.

Rey was involved in the sale of Le Belvedere for $50 million — the highest in the U.S. in 2010 –— and again in 2018 for $56 million.

Amenity Wars

In recent years, there have been a number of newly built for-sale trophy homes, some with list prices stretching current benchmarks. What sets these properties apart is the number of over-the-top features, including curated art installations, stocked wine bars, car collections, an onsite staff and even a helipad. The objective — to include everything someone might want in a home — is aligned with the motives behind the inclusion of extensive amenities in classic estates.

Legendary Redos

No matter how exquisite a property, new owners have a penchant to put their own stamp on it. “I just think that it’s amusing that people must make even, you know, the most expensive, beautiful home — they must make it their own. So sometimes it’s just been remodeled, and then torn completely apart. And they start over,” shares Mills, who brokered the 2019 sale of The Manor. And this practice is not limited to prime estates. Instead, it reaches across the entire price spectrum, whether a house is $1 million or a $100 million.

Few other homes on our annual list have received as much attention as this estate. “The Manor was sort of like no other,” recalls Mills. With 123 rooms and more square footage than the White House, it is one of the largest in Los Angeles. Size and prices generated publicity, but it was the extensive amenities, including gift-wrapping rooms, vast closets, a barber shop, hair salon, bowling alley and nightclub that captured the public’s fancy. There aren’t as many closets as large as the one in the master,” Mills ventures, estimating it to be in the 2,500-square-foot range.”

This story originally appeared in Unique Homes Ultimate ’21. Click here to see the digital version.

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