Charlie Sheen has become a household name for his recent ridiculous antics, but now the #Winning actor is making news again for his activity in the California real estate market. The star recently bought a home, listed a home and sold a home. Most recently, Sheen successfully sold his 1920’s Mediterranean style mansion in Las Angeles. The four-bedroom, 4,100 square-foot home was on the market in 2009 for $3.697 million, but failed to sell and was taken off the market in May of this year. The home, which has been occupied by Sheen’s Ex-wife Brook Mueller and their two young children, was recently relisted and  sold for just $2.9 million. The home includes a state-of-the-art commercial kitchen, high ceilings, and numerous outdoor terraces overlooking the swimming pool and lushly landscaped backyard.   

Blog and Photos via Curbed

The ultra affluent are not slowing down their purchases due to the down economy. Worldwide high-end real estate brokers and agents report a 67 percent increase in sales during the first three quarters of 2011. Many buyers, who are purchasing second, third or fourth homes in the $5 million and up range, are paying cash. This rise in individuals looking to buy globally has created a scarcity of luxury homes in some of the most popular cities, causing prices to rise. Many affluent buyers, hailing from Asia and the Middle East, who are looking to buy in Europe and South America are encountering competitive real estate markets.

Many regions, such as Paris and London, have seen a decrease in new home building due to stricter building codes and limited expansion space. Such restrictions, paired with the increasing demand in the luxury sector are leading to more demand for renovated residences in major cities. Buyers purchasing homes that will not be their primary residence are looking for unique purchases, putting great emphasis on location, sentiment and lifestyle. The finite number of properties at the high-end of the market guarantees that these homes will always have a market, one which continue to grow and prosper regardless of the shaky global stock market.

Blog via Propgoluxury.com

The green energy and eco revolution going on worldwide has increased many homeowners interest in renovating their homes to meet the new trend of living in a “Green” home. Traditionally homeowners and interior designers looked to bamboo to meet their flooring needs. Bamboo is both durable and sustainable, reaching a mature harvesting age quickly. However, more exotic woods are emerging on the green flooring market. Not all the options are as cost effective as bamboo, but offer a larger range of color and density options.

Coconut wood, which matures in a mere 6 years, offers high durability, dense texture and deep, rich colors. This wood though is often hard to come by since the majority of coconut trees are used for up to 80 years to produce coconuts for harvest.

A lesser known wood, Lyptus, the cross between two types of eucalyptus trees matures quickly and offers a resemblance to mahogany or cherry. Lyptus is heavier but also much sturdier than many popular hardwoods. Lyptus offers beauty affordability and great sustainability.

Cork is emerging as a more unique alternative to other sustainable flooring options. Cork is the bark of the cork tree, and when harvested correctly is highly renewable. Cork is also a softer option, giving when you walk on it, but extremely durable and resilient. Cork should not be used in kitchens or bathrooms, because of its ability to absorb water and swell. Cork is also hard to install, but once finished makes a unique conversation piece in a luxury home.

Green living is becoming increasingly beautiful as more options become available on the market, making this an excellent option for the luxury homeowner looking at add that special touch to their home.

Blog and Photo via Luxspaces

The Napa Valley home of late winemaker Robert Mondavi will be put on the auction block November 16. The estate, which includes 56 acres, an indoor pool with a retractable roof, two tennis courts and an underground wine cellar was listed just last year at $25 million. Bids will begin at $13.9 million for the house that dates back to 1979. The 11,500-square-feet of living space has just two bedrooms but ample entertaining space, both indoors and out. The home is situated just minutes from Mondavi’s famed winery. 

Blog and Photo via Curbed National

The current economic market as a whole may not be an accurate reflection of some markets. Though news and government organizations insist that the market is in the midst of stagnation and that roughly 72 percent of Americans believe our nation is headed in the wrong direction, some argue that the luxury market has not been affected by downward economic trends. The mood and spending trends seem to be less affected by the economy as a whole, but by the trends of the stock market. The top 10 percent of earners are historically more optimistic and confident in their spending and investing.

A good reflection of the luxury markets, whether it is cars, homes or luxury goods, is based on the success of luxury brands. These brands, like Hermes, Ferrari and Tiffany’s, have reported increasing sales for 2011. Many companies also expect continually increasing profits over the coming years. Often customers of these high-end brands are not affected by economic downturns like lower income individuals are. This being said, many affluent individuals have refused to change their spending habits despite downward international market trends. Many companies have put out precautionary statements warning that even though estimates point to increasing numbers, the luxury market is not immune to downward trends.  

Blog and Photo via JustLuxe

Wealthy homeowners who have been debating on whether or not to purchase that luxury vacation home may be finding that now is indeed the time to buy. Housing prices have been falling steadily for the past five years, making many reluctant to invest in 2^nd or 3^rd properties. However recent sales trends have shown that markets in many “vacation” areas are beginning to level out. Hilton Head, South Carolina for example has seen a four percent rise in home prices in the past year. Other markets like Martha’s Vineyard and Palm Beach, popular playgrounds for the rich, have seen increased interest in buyers looking to buy vacation homes. Many buyers site the leisure and enjoyment aspect their top reason for buying a second home, but many also note that the investment opportunity that accompanies real estate purchase also factors into their decision.

Luxury markets have been on the rebound in recent months, making now the ideal time to buy, while prices are low. Buyers who have cash to buy are at a unique advantage in the market, being able to buy without dealing with difficult mortgage technicalities. Without saying the boom is back, some argue that people are suffering from frugality boredom, after five years of conservative spending. Many markets, while still not on the rebound have abundant deals. Many luxury homes can be bought for a fraction of their original asking prices in destinations like Vail, Miami and the Hampton, with the markets looking at a promising future. Buyers though should be prepared to hold on to properties for an extended period of time in order to turn a profit. The luxury market, while more steady than the national market as a whole, is still recovering at a slow pace. 

Blog via Wall Street Journal

Just as wealth isn’t spread equally among Americans, wealth is not spread equally over America. According to this year’s Forbes 400 List the wealthiest Americans tend to congregate in certain areas, namely California, the Northeast and Texas.

Topping the list is New York City, with 53 of the 400 primarily residing in this finance and business center. It comes as no surprise, with adequate luxury housing and a thriving entertainment district that billionaires not only love to work in NYC, but live and play as well. Not only does New York City draw billionaires but the surrounding area is also popular place for billionaires to settle. Greenwich, Connecticut is home to another 8 super-rich, making the Northeast a prime spot for a billionaire’s home base.

Dallas, Texas boasts the second highest concentration of billionaires in the nation, with a mere 17 compared to NYC, residing in the area. Dallas’ neighboring Fort Worth is home to an additional 8 billionaires, making the Dallas/Fort Worth area home to a total of 25 member of the Forbes 400. Texas’ oil money and concentration of big-name corporations draw the ultra-affluent to the state which has a total of 47 billionaires. This number is up by 11 residents in just the past five years.

Some are surprised that the San Francisco area doesn’t rank higher on the list of desirable cities for billionaires, since so many tech companies call the area home. Companies like Google and Facebook have made their headquarters in the suburbs around the Bay Area, making California the leading state in terms of billionaires with 88 calling the sunny state home. 

Blog and Photo via Forbes

The Institute of Luxury Home Marketing released a report on Sunday July 17 regarding luxury home prices around the United States. After surveying 32,744 luxury homes on the market, here are some of the facts they garnered:

• The ILHM Luxury Composite Prive is $1,055,524.
• These homes have been on the market for an average of 113 days.
• The median house size if 3,266 square feet.
• The market action index is 13.

What does all this mean? For one, it's definitely a buyer's market (more choices for you!), but the luxury home prives have stayed relatively stable in recent weeks, based on previous reports from the ILHM.

Another fact that the report points out is the median luxury price of homes in different metro markets. New York and Los Angeles lead the way with median prices of $3,487,260 and $2,239,353, respectively, while Cleveland and Las Vegas have the lowest median price for what's considered a luxury home ($436,839 and $246,780, respectively.)

For the full report, click the link below.

ILHM_National_2011_07_17_1224252860_6492.pdf (434.14 kb)

Chief Executive Douglas Yearly of Toll Brothers, a company that builds luxury homes, said that the housing market is showing "signs of improvement" with luxury homes leading the way out. Though he expects luxury home sales for the rest of the year won't skyrocket, Yearly says prices for luxury homes have stabilized. "We're not seeing price reductions [in luxury homes]. In some isolated cases, we have some pricing power, we're able to raise prices." [CNBC]

File this under weird news of the day/how-is-this-even-possible: 18-year-old Todd Blauvelt, Jr. of Ontario convinced his 15-year-old girlfriend and her family to move into a lakefront mansion that he claimed he inherited from his grandfather, but about an hour after they did, the owner of the mansion came home. Blauvelt was charged with second-degree burglary, giving a false statement to the police (he produced a fake document that "claimed" his inheritance), and sexual misconduct and endangering the welfare of a child, due to his girlfriend only being 15. [Daily Mail]

Looking to retire within the next few years? Forbes is suggesting that buying a retirement home now and renting it out until you're ready to use it is a great idea. According to the 2011 National Association of Realtors Investment and Vacation Home Buyers Survey, vacation home prices were down 11% from 2009 to 2010, and many markets are close to hitting the lowest point of sales. A few tips from Forbes: buy in cash to avoid mortgage payments, find an ideal location (mostly homes with waterfront views), fix it up if necessary, and be prepared to be a landlord. [Forbes]

Realtors, agents, brokers, and luxury home enthusiasts - are you "LinkedIn" and want to network with other real estate professionals? Discuss the luxury real estate business, share a success story, or give an insider tip at our LinkedIn group!

duPont REGISTRY A Buyers Gallery of Fine Homes LinkedIn Group

Lionheart Capital, a private equity firm in Miami that owns 146 condos at The Ritz-Carlton on Singer Island in Riviera Beach, is offering extra commission to any agents that sell their condos. All sales of the condos will give an agent 3% commission. But on top of that, for an agent's first sale, realtors will receive a bonus of either $10,000 or a vacation package for a 3-night stay at The Ritz-Carlton Toronto. A second sale means a bonus of either $20,000 or a 4-night stay at The Ritz-Carlton LA Live, and a third sale means a bonus of $20,000 or a 7-night stay at The Ritz-Carlton Hong Kong.

Though agents aren't required to tell a buyer upfront about any commission they're receiving for a sale, some believe that agents should be upfront about what they're making. What do you think? [Sun-Sentinel]

The L.A. Times is reporting that sales for new homes rose 7.3% in April. Sales gains were not limited to one area, rather every region saw increases: 15.1% in the West, 7.7% in the Northeast, 4.9% in the Midwest and 4.3% in the South. This is great news, considering at this time last year, home sales were down 23.1%. [L.A. Times]

According to professors Ken Johnson of Florida International University and Eli Beracha of East Carolina University, research is showing that it's currently better to buy a home than to rent. Two factors have to do with that, the professors say: Rent could rise by 7 percent over the next two years, and home prices have dropped drastically (a.k.a. investment opportunities!). [Property Magazine]