Jun 20 2007 10:08AM | Permalink | Email this | Comments (1) |
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In our June issue I wrote an article, Five Tips for Success in a Down Market, that focused on ways to build your business during the current slowdown. One of our tips was focusing on the high-end of the market. Well, here's more good news for remodelers that target the luxury client.

The 2007 Coldwell Banker Previews International Luxury Survey shows that luxury homeowners, those with homes valued at more than $1 million ($2 million in California), are much more optimistic about the value of their homes. Some 56 percent of those homeowners expect the value of their home to increase in the next year and 10 percent expect it to increase "significantly." 

That stands in stark contrast to the latest report from the National Association of Realtors, which is predicting a 1.3 percent drop in home prices this year. 

The survey also examined the features luxury homeowner are looking to add. The most popular "want" was heated floors, with 21 percent of homeowners saying they were considering adding them, followed by tennis courts at 19 percent. About 16 percent said they want to add a bedroom kitchen, the same percentage that want to build a golf course or putting green.

Whether it's because they're smarter than the rest of us, or simply don't care about the money, it's clear this can be a lucrative market for remodelers, especially as overall consumer confidence continues to decline in the face of rising gas prices and declining home prices.