As the lead sales agent and branch manager of The Silverleaf Group, a team that has consistently achieved $100 million in sales year after year, I am often asked how we have fared through the current economy and market. Of course we were affected, but as is the mantra of the entire DMB Realty Network team, The Silverleaf Group adapted, adjusted and moved forward. In fact, we were fortunate enough to break the record for the sale of the highest priced home in the Valley this summer at $6.2 million.
In order to optimize our efforts, we refocused on the strong history of the property, the caliber of the current owners and members and the fact that Silverleaf is the premier community in the greater Phoenix market. We sold the value of the current opportunities and focused on the fact that the Silverleaf Club and the lifestyle remained top shelf.
However, we were not without challenges. In 2009 sales volume in Silverleaf was at its lowest as prices had not yet started to adjust and Buyers were cautious. Fortunately, in 2010, Sellers began to adjust pricing and volume slowly started to come back. Naturally, distressed options played a part in the market pricing but were never a dominant factor. The market in Silverleaf has remained consistent over the past three years with prices adjusting to new market levels and volume remaining strong. Today, new home construction activity is very active as private projects and several spec builders are moving forward, confident that Silverleaf offers long-term opportunity. In addition, we continue to see a strong flow of highly qualified buyers exploring properties and the Silverleaf Club lifestyle.
Obviously the recent economy has affected markets across the board, from consumer goods to luxury goods, from opening price point homes to the second home market. However, the luxury market is showing signs of a rebound, although the rebound applies more to activity and sales rather than to price. Recent trends point to a shift in a positive direction as inventory levels are down and the volume of new listings to hit the market has slowed. Combine this with the fact that we are seeing fewer bank owned and distressed seller listings and all the factors are good indicators that price in most luxury categories has found its bottom.
As far as Buyers are concerned, over the past three years Buyers have transitioned through three primary mindsets: Fear – wait and see what happens next; Caution – “the deal” was the driving force, everyone was searching for distressed opportunities; and Value and Emotion – Buyers are feeling good about pricing and buying what they really want. It seems all Buyers are feeling more confident about the future and have grown tired of delaying their luxury purchase; they want what they want and are now ready to move on and enjoy their life.
