Sotheby’s International Realty Achieves Historic Year with Record $204 Billion in Global Sales Volume

63225 Lookout Dr, Bend, OR 97703
Presented by Tebbs & Little Group | Offered at $7,500,000 | MLS# 220124010

From prnewswire.com

Sotheby’s International Realty is pleased to announce that its global network achieved a record US$204 billion in 2021 global sales volume, a 36% increase in sales growth year over year, as U.S. cities saw a resurgence of interest following the pandemic and sales activity in secondary and resort markets around the world remained strong. The brand’s U.S. sales volume grew by 33.8% year over year, significantly outpacing NAR’s national increase of 20.6% from the prior year,¹ underscoring the brand’s leadership in the high-end market.

“Real estate proved to be a hot investment in 2021,” said Philip White, president and CEO of Sotheby’s International Realty. “Once again, agents affiliated with Sotheby’s International Realty outperformed the industry average and achieved record-breaking home sales as buyers continued to depend on their trusted expertise to navigate a constrained market.”

Reinvigorated Interest in Cities and Continued Strength in Secondary Markets Fueled Sales

27415 Siuslaw River Rd, Lorane, OR 97451
Presented by Daniela & Maria Abarca Roberts | Offered at $3,900,000 | MLS# 21583590

The Sotheby’s International Realty® brand’s existing presence in major metropolitan and resort markets around the world ensured the brand was well-prepared to meet the renewed interest in cities and the sustained boom of secondary home markets.

Interest in U.S. cities such as New York, Miami, San Francisco, and Austin returned to pre-pandemic levels and helped trigger record-breaking sales. Other U.S. cities, such as Atlanta, Houston, and Los Angeles, also saw strong performances in 2021.

With remote and hybrid work models influencing buyer behavior in 2021, secondary markets and resort areas continued to produce high demand and increased prices. In the U.S., areas such as Florida, Hawaii, and Colorado saw record performances. Globally, second-home markets in Australia, Spain, and Switzerland and resort areas in the Bahamas, Cayman Islands, Turks & Caicos, and Puerto Rico achieved notable growth and record sales.

As buyers continued to prioritize properties that offered more space and land, states with no income tax such as Florida, Texas, and Wyoming offered added appeal, while the Bahamas, Cayman Islands, Switzerland, Hong Kong, and Singapore remained popular for their favorable tax structures and saw significant gains.

An Award-Winning Year for the Brand’s Innovative Technology and Offerings

1707 SW Schaeffer Rd, West Linn, OR 97068
Presented by Tina Wyszynski | Offered at $15,000,000 | MLS# 21675422

Sotheby’s International Realty continued to lead the industry with its technology and marketing efforts. Sothebysrealty.com saw more than 46 million visitors in 2021, a 25% increase year-over-year and the most visits to the website in its history. The site was also named Best Real Estate Website in the People’s Choice Category in the 25th Annual Webby Awards, recognizing the brand’s efforts to introduce translations in 14 languages, nearly 60 currency conversions, and a mobile-first approach to emphasize the method in which today’s clients are buying and selling homes.

Property videos, which exploded in popularity during the 2020 lockdown, have continued to trend as more buyers start the initial viewing process online. Videos produced by Sotheby’s International Realty agents were played nearly 90 million times – a 50% increase year-over-year.

Sotheby’s International Realty was also awarded the honor of 2021 Top Luxury Brokerage by Inman, the industry’s leading source of real estate information. The prestigious award is a testament to the brand’s achievements in luxury marketing, record-breaking sales, and high-quality service.

“Buyers continue to rely on virtual technology to make their homebuying process more convenient,” said Chief Marketing Officer, Bradley Nelson. “As a brand, we have always sought out to establish the highest standard for marketing luxury properties and I am proud that our marketing and technology investments have been recognized as the ‘best’ in the industry in 2021.”

Fortifying a Strong Network with Global Growth

3807 Old Lewis River Rd, Woodland, WA 98674
Presented by Brandy Pettet | Offered at $5,750,000 | MLS# 21300616

During another record year, Sotheby’s International Realty continued to strategically expand its presence around the world. In 2021, the brand opened 86 new offices, bringing the brand’s total presence to more than 1,000 offices in 79 countries and territories with more than 25,000 independent sales associates worldwide.

“Sotheby’s International Realty continued to expand internationally in key markets,” said Tammy Fahmi, senior vice president of global servicing and strategy for Sotheby’s International Realty. “In 2021, the brand opened offices in five new territories and our international sales volume grew by 56% year over year. Our global presence is a draw for our agents and clients, and we continue to evaluate markets that will support our strategic growth.”

In the EMEIA region, the brand expanded to Oman and Morocco and opened three new offices in the Swiss Alps region. In the Caribbean and Latin American region, the brand opened new offices in Jamaica and St. Kitts & Nevis during a boom of Caribbean interest.

As affluent individuals looked to purchase homes in a market with limited inventory, Sotheby’s International Realty agents acted as true global real estate advisors. Referral sales volume within the brand’s global network increased by nearly 80% year over year and the average sales price of these referrals increased by 21% year over year.

“Our ability to produce another historic year amid record demand and low inventory shows beyond a doubt that Sotheby’s International Realty agents are resourceful, committed, and informed to meet and exceed the needs of their clients,” concluded White.

Full article at prnewswire.com


Home Sales Surged in January

30260 NE Springhill Rd, Troutdale, OR 97060
Presented by Dennis Coxen | Offered at $3,949,000 | MLS# 21486145

From REALTOR® Magazine

Homebuyers appeared in a rush to lock in mortgage rates ahead of further increases and to take advantage of any housing inventory they could find last month. Existing-home sales climbed 6.7% in January compared to the prior month, led by the strongest gains in the Southern region of the U.S., according to the National Association of REALTORS®’ latest existing-home sales report.

Sales rose even as housing inventories fell to an all-time low and home prices increased at a much swifter pace, NAR reports.

Existing-home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—increased to a seasonally adjusted annual rate of 6.50 million in January. Sales, however, are down 2.3% compared to a year ago, NAR reports.

“Buyers were likely anticipating further rate increases and locking-in at the low rates, and investors added to overall demand with all-cash offers,” says Lawrence Yun, NAR’s chief economist. “Consequently, housing prices continue to move solidly higher.”

Meanwhile, “the inventories of homes on the market remains woefully depleted, and in fact, is currently at an all-time low,” Yun adds. Homes priced at $500,000 and below are vanishing from the market. Supply is rising at the higher price ranges. “There are more listings at the upper end—homes priced above $500,000—compared to a year ago, which should lead to less hurried decisions by some buyers,” Yun adds. “Clearly, more supply is needed at the lower end of the market in order to achieve more equitable distribution of housing wealth.”

5 Key Housing Indicators

Here’s a closer look at how existing-home sales performed in January, according to NAR’s latest report:

  • Home prices: The median existing-home sales price increased at a stronger pace in January, climbing 15.4% annually to $350,300.
  • Inventories: Total housing inventory at the end of January was 860,000 units, plunging nearly 17% from a year ago. Unsold inventory is at a 1.6-month supply at the current sales pace.
  • Days on the market: Seventy-nine percent of homes sold in January were on the market for less than a month. Homes are selling faster than last year. Properties typically stayed on the market for 19 days in January, down from 21 days a year ago.
  • First-time home buyers: First-time buyers accounted for 27% of sales in January, down from 33% in January 2021. As home prices increase and mortgage rates rise, first-time buyers could be getting priced out of the market, Yun notes.
  • Investors and second-home buyers: Individual investors or second-home buyers purchased 22% of homes last month, up from 15% a year ago. They tend to account for the largest bulk of cash sales, which accounted for 27% of transactions in January.

Regional Breakdown

The South saw the largest uptick in home sales last month, but all four major regions of the U.S. posted gains. The following are how existing-home sales fared in the main regions of the U.S. in January.

  • South: home sales climbed 9.3% in January compared to the prior month, reaching an annual rate of 2.94 million. That is an increase of 0.3% from a year ago. Median price: $312,400, an 18.7% increase compared to a year ago
  • Midwest: sales increased 4.1% in January compared to the previous month and reached an annual rate of 1.51 million. That is equal to the level a year ago. Median price: $245,900, a 7.8% rise from January 2021
  • Northeast: sales increased 6.8% in January, reaching an annual rate of 780,000. That marks an 8.2% decrease from a year ago. Median price: $382,800, up 6% compared to January 2021
  • West: home sales rose 4.1% and reached an annual rate of 1.27 million in January, down 6.6% compared to a year ago. Median price: $505,800, up 8.8% from January 2021

Full article on REALTOR® Magazine


New Report from Sotheby’s International Realty Predicts Another Strong Year for Luxury Real Estate

18625 Macalpine Loop, Bend, OR 97702
Presented by The Ladd Group | Offered at $4,997,000 | MLS# 220138572

From prnewswire.com

According to a recent report from Bloomberg discussing a report from Sotheby’s said: “The only thing that can slow the global luxury market in 2022 is … greed.”

It’s impossible to underprice a property in this environment,” says Bradley Nelson, Chief Marketing Officer of Sotheby’s International Realty, which released its 2022 Luxury Outlook report on Monday.

A potent combination of sky-high bonuses, accelerating intergenerational transfers of wealth, low-interest rates, and the specter of inflation “makes investing in a concrete, fixed asset like real estate attractive to many as they balance their portfolios,” Nelson says. The environment is such that, no matter how low a property is listed, demand and competition will push its price to the top of the market.

“We brokered a co-op sale in New York,” Nelson says. “The asking price was $40 million, and there were multiple billionaires interested in purchasing it at the same time,” he continues. “The market is a living, breathing thing, and it’s going to give you feedback when fresh, desirable inventory comes on the market.”

“The real estate market is now being driven by hybrid work vs. remote work,” he says.

Tax considerations continue to drive luxury purchasing decisions. “That’s really the headline in both the United States and internationally,” says Nelson. “You’re going to see the greatest investments continue to be in tax havens.”

The article continued: “The lack of state income tax in Texas and Florida will help those states’ luxury markets retain their luster, he says, while tax increases in countries as disparate as Oman, Ireland, and Canada, which just instituted a 1% tax on the value of homes held by nonresident, non-Canadian owners, could adversely impact luxury prices.

Finally, Nelson says the biggest impact on luxury real estate is gradually going to become apparent over the next five years: “Transacting in crypto,” he says, “is going to grow in exponential ways.”

Full article at prnewswire.com


Housing Wealth is Setting New Records for Both Owners and Sellers

4081 NW Hidden Lake Loop, Waldport, OR 97394
Presented by Heather Jordan & Camilla Arlit | Offered at $2,450,000 | MLS# 21-2765

From cnbc.com

The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth. What they choose to do with it could have impacts on the broader economy.

Annual home price gains averaged 15% in 2021, up from 6% in 2020, according to CoreLogic. Strong pandemic-driven demand, record low supply and record low mortgage rates conspired to create those hefty gains. Bidding wars are now the norm, and desperate buyers are competing with investors who want to cash in on the hot market. The upward trend is continuing, despite winter being historically the slowest season for housing.

“While we expect this year’s buyers will eventually see some relief from the 2021 frenzy, home shoppers continue to face challenging conditions in the early days of 2022,” said Danielle Hale, chief economist for Realtor.com. “In fact, last week’s home price and time on market trends suggest competition intensified.”

While there were relatively few home sellers in 2021, for those who did list their homes, the returns were well worth it. The profit on a typical home sale last year was just over $94,000 according to ATTOM, a national property database. That is up 45% from the profit in 2020 and up 71% from pre-pandemic profits. And the vast majority of local housing markets participated in that growth.

“Households that escaped job losses from the pandemic dove into the market, in large part as a response to the crisis,” said Todd Teta, chief product officer at ATTOM. “No doubt, there are warning signs that the surge could slow down this year. But 2021 will go down as one of the greatest years for sellers and one of the toughest for buyers.”

It was the highest profit level since 2008, which was the last housing boom and that boom was built on faulty mortgages and homeowners with little to no equity. That is not the case now.

Even homeowners who weren’t listing their properties for sale were gaining equity. About 42% of homeowners were considered equity-rich at the end of last year, meaning their mortgages were half or less than half the value of their home. That wealth is far higher than the 30% share of equity-rich homeowners at the end of 2020. Nine of the top ten equity-rich states were in the West, including Idaho, Utah, Washington and Arizona.

The states with the least housing wealth were mainly in the Midwest and South, such as Illinois, Louisiana and Mississippi.

Full article at cnbc.com