Blog :: 2015

Boston's Luxury Market Grows to 2nd in the Nation

Second-Tier Surge

New York and L.A. get the attention, but Boston and Denver are rising in the U.S. luxury market

By Andrea López Cruzado
Originally published on September 24, 2015 | Mansion Global

Second-tier metropolitan areas are making their way into the major league of U.S. real estate, showing some of the highest growth rates among luxury markets nationwide.

Denver and Boston rank with San Francisco, Los Angeles and New York in the latest realtor.com luxury home index, which analyzes the top 10 metro areas in the S&P/Case-Shiller Home Price Indices. The realtor.com index measures a market’s high-end growth and entry price, among other factors.

In terms of luxury growth, San Francisco takes the lead, followed by Boston, Los Angeles, Denver and New York. (Metro areas extend well beyond their core city, often encompassing a range of towns and neighborhoods.)


realtor.com

The Denver-Aurora-Lakewood area recorded some of the biggest growth rates. Its luxury market expanded by 18% between 2006 and 2014, reaching a total value of $3.2 billion, according to realtor.com. The Boston-Cambridge-Newton market increased by 12% over the same period, to $4.8 billion.

The realtor.com report uses 2014 as its last full year, and defines luxury as the top 5% of a market. (News Corp, owner of Mansion Global, also owns Move Inc., which operates realtor.com.)

Michael Harper, a real-estate agent with Coldwell Banker Residential Brokerage in Boston, attributed the area’s growth to an influx of wealthy millennials as well as baby boomers who raised children in the suburbs and now want to move to the city. These two set of buyers, Harper said, are competing for the same properties and driving prices up.

Harper recently handled the sale of an apartment at the Mandarin Oriental in the Back Bay neighborhood for $12.5 million, or $3,880 per square foot. The sale was reportedly the most expensive so far this year in Boston.

When the markets are measured by growth in volume of transactions, Denver takes the crown. The Denver area had a 12% increase from 2006 to 2014. Other markets, with the exception of San Diego (at 10%), experienced declines in the number of deals. In Miami, transaction volume was unchanged in 2014 compared with 2006.

Douglas D. Kerbs of LIV Sotheby's International Realty in Denver said the past years' increase in luxury properties has been fueled by a solid local economy and growing demand from people relocating to the city from the East and West coasts, particularly empty nesters and young families.

Kerbs identified Cherry Creek, Cherry Hill, Castle Pines Village and the downtown area as some of the most desirable neighborhoods in Denver.

The realtor.com index used 2006 as its baseline and 2014 as the last full year. While it shows the top 10 S&P/Case-Shiller, scores are calculated relative to the top 50 largest markets.

Write to Andrea López Cruzado at andrea.lopez@dowjones.com

Sotheby's International Realty Brand Wins 'Best in Category' for Eighth Consecutive Year

YORK, Maine (Feb. 3, 2015) Anne Erwin Sotheby's International Realty, a luxury real estate firm based in York, Maine today announced the Sotheby's International Realty® brand won Franchise Business Review's Best in Category for Real Estate Franchisee Satisfaction award for the eighth year in a row.

The Best in Category award measures franchisee satisfaction with their franchisors and is part of the 10th annual Franchisee Satisfaction Awards presented by Franchise Business Review. In addition to its real estate ranking, the Sotheby's International Realty brand also came in first in the overall top 50 and first among the Top 50 "Systems with 250 or more units," which is a ranking of all franchise systems across all categories with more than 250 locations.

"We are so proud to not only receive this distinction for the eighth year in a row but to also move from third to first in the systems with 250 or more units ranking, and from fourth to first in the overall top 50 ranking," said Philip White, president and chief executive officer, Sotheby's International Realty Affiliates LLC. "This award essentially is our report card from our network, and we are so pleased that they hold us in such high regard within the ranking system. We continually strive to improve our service to our franchisees and we are grateful for this honor."

Franchise Business Review surveyed more than 28,000 franchisees from more than 350 leading systems for the annual Franchisee Satisfaction Awards. Franchises were evaluated in five areas: training and support, franchise system, franchisor/franchisee relations, financial opportunity and overall satisfaction. Additionally, demographic and lifestyle questions gave a 360-degree view of the franchise ownership experience. Franchise Business Review is a national franchise market research firm that performs independent surveys of franchisee satisfaction and franchise buyer experiences. For a complete list of this year's award winners, go to www.FBR50.com.

"The Sotheby's International Realty brand has been ranked number one in Real Estate for eight years running," said Franchise Business Review president Michelle Rowan. "The brand's continuous efforts to find ways to strengthen the brand and relationship with its franchise partners won it the honor of being ranked number one overall on our list of 200 brands with the strongest validation from their franchisees this year."

"This brand offers our firm the tools, resources and support we need to reach a global audience of consumers and provide our clients with the best possible service," said Linda Briggs broker/owner. "We are proud to be part of this network of extraordinary professionals, and to represent this fine brand in the Southern Maine and Seacoast New Hampshire markets."

Anne Erwin Sotheby's International Realty, which has an office in York, ME, offers exclusive Sotheby's International Realty marketing, advertising and referral services designed to attract well-qualified buyers to the firm's property listings. In addition, the firm and its clients benefit from an association with the Sotheby's auction house, which promotes real estate referral opportunities with auction house clientele.

As a Sotheby's International Realty affiliate, the firm also has the unique ability to refer its real estate clientele to the auction house for jewelry, art, unique furniture and collectible appraisal services. Property listings from Anne Erwin Sotheby's International Realty also are marketed on the sothebysrealty.com global website, as well as on the firm's local website, anneerwin.com.

Anne Erwin Sotheby's International Realty is located at 31 Long Sands Road, York, Maine. For additional information, please contact 207.363.6640.

The Sotheby's International Realty network currently has over 16,400 sales associates located in approximately 730 offices in 56 countries and territories worldwide. Sotheby's International Realty listings are marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, the firm's brokers and their clients will benefit from an association with the Sotheby's auction house and worldwide Sotheby's International Realty marketing programs. Each office is independently owned and operated.