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Hilltop Homes Preferred by Luxury Buyers

Posted: June 3, 2014 5:15 p.m.
Updated: June 3, 2014 5:15 p.m.

 

Even in a state with hundreds of miles of beautiful, sandy beaches, luxury home buyers in California preferred hilltop homes over ocean-front properties by a margin of four to one.

Forty-one percent of buyers who last year bought luxury homes - property priced above $1 million - purchased a home with a hilltop view, compared to 10 percent who bought an ocean-front home, according to the California Association of Realtors’ 2013 Luxury Real Estate Consumer Survey.

Hilltop homes even outranked ocean-front homes and ocean-view homes combined (38 percent). Buyers also purchased luxury homes located near a golf course (16 percent), mountain area (12 percent), resort area (9 percent), lake-front (4 percent), and ski resort (1 percent).

The vast majority - 79 percent - of luxury home buyers said they purchased the home as a primary residence. Ten percent purchased the home as a vacation or second home. Nine percent purchased the home as an investment or rental property, and two percent cited “other” reasons.

Additional findings from C.A.R.’s 2013 Luxury Real Estate Consumer Survey included:

• One-fourth of luxury home buyers said the main reason they purchased a home was because they wanted a larger home, compared to traditional buyers (23 percent) who said they were tired of renting as the primary reason for purchasing a home.

• With luxury home buyers usually being higher income earners, 35 percent of all luxury buyers were able to pay all cash for their property, compared to 27 percent of traditional buyers, and 11 percent of first-time buyers.

• Luxury home buyers also made higher down payments, 30 percent of the sale price, than traditional buyers, 25 percent, and, as a result, had less difficulty in obtaining financing than traditional buyers. On a scale of 1 to 10, with 1 being “very easy” and 10 being “very difficult,” luxury home buyers rated acquiring financing difficulty at 3.7, compared to 8.6 for traditional buyers.

• Fifty-seven percent of luxury buyers were single, compared to 37 percent of traditional buyers who were single.

Nancy Starczyk is President of the Santa Clarita Valley Division of the Southland Regional Association of Realtors. David Walker, of Walker Associates, co-authors articles for SRAR. The column represents SRAR’s views and not necessarily those of The Signal. The column contains general information about the real estate market and is not intended to replace advice from your Realtor or other realty related professionals.

 

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