Luxury Trends 1st Quarter 2020 Luxury Report from the Market Leader
1st Quarter, 2020 DicksonLuxury.com
Welcome to our 1st quarter 2020 Luxury Trends! All of us at Dickson Realty hope that you and yours are healthy and safe. While these days are unsettling, I am encouraged as to the resilience, strength and goodness of the people in our country. Although it seems much longer ago, it was only on March 20, 2020 that Governor Sisolak directed all non-essential businesses in Nevada to close. On March 27, President Trump signed into law the first stimulus bill. I look back on how our lives have changed in this very short time and I am proud as to what we have accomplished. Things are certainly not perfect, but we have pivoted in a remarkable way. I feel certain we will do what we need to do in order to protect as many people as possible in the near future. I am grateful to all who contributed to a remarkable December-March real estate market in northern Nevada. The efforts of EDAWN and our state and local governmental entities, combined with historically low interest rates, resulted in the excellent results we provide in this newsletter. This positive history will not only help our company, but also our many fine competitors and real estate agents, survive this crisis. What a difference a few weeks has made. I fear the next quarterly report will not be as strong, but people remain driven to buy and sell real estate for many reasons. Under very careful health procedures and protocols, we are still assisting people to do so. I do believe once we are through this terrible health crisis, we will return to a strong economy. I dream of recovery for all, not knowing how long it will take... but knowing it WILL happen. 2020 started out remarkably strong, especially in the luxury market. Our sales for the first three months of the year were up more than 36 percent. Average prices were up over 6 percent. Not surprisingly, the number of active luxury listings are down from the same period in 2019 by almost 9 percent. The specifics are detailed in this report. Our clients are asking, “Should I list my house now?” Our answers are provided on a case-by-case basis, but always starting with the health and safety of our clients, our agents and staff. We are blessed that much of our work is done through electronic tools and technology and do not always require face-to-face meetings. Under very strict conditions, we feel we can safely manage in-person appointments. We are unable to show properties occupied by tenants but we are allowed to show owner/occupied properties. Don’t hesitate to call your Dickson Realty trusted advisor to explore what is best for you. As always, we will respond with our thoughts as to what is in your best interest. I believe I speak for many of you when I say how grateful I feel to live in northern Nevada. Stay healthy and safe. Let us know if we can help in any way and we look forward to celebrating once we are on the other side of this crisis.
— CEO, Dickson Realty
Jan-mar
2020 vs. Jan-mar
2019 Reno/Sparks Sales Over $1 Million*
+36%
+6%
+4.7%
+6.3%
TOTAL HOMES SOLD
AVERAGE SOLD PRICE
AVERAGE PRICE PER SF
AVERAGE DAYS ON MARKET
2020: 45 2019: 33
2020: $1,543,811 2019: $1,455,403
2020: $336.18 2019: $321.09
2020: 186 2019: 175
*Source: Northern Nevada Multiple Listing Service (NNRMLS) residential volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - Mar 31, 2020, as of 4/7/2020
Top 5 Luxury Real Estate Companies 2020 Market Share for Reno/Sparks Homes Sold Over $1 Million*
41.04%
DICKSON REALTY 7.53% chase 5.15% re/max affiliates 4.95% ferrari-lund
Dickson Realty market share for Reno/Sparks homes sold over $2 Million in 2020 =
4.21% tanamera realty
48.73%
Luxury Home Sales By Month Over $1 Million* 2020 vs. 2019
# OF UNITS SOLD
2020 2019
*Source: Northern Nevada Multiple Listing Service (NNRMLS) residential volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - Mar 31,2020 as of 4/8/2020
Exceptional Sales in our Region Congratulations to the Dickson Realty Luxury Agents who represented the sellers of these notable properties. Amazing home, just updated and remodeled. Located on one of the most beautiful homesites in Montrêux, overlooking the 6th and 8th Fairways and Lakes.
SOLD $4,500,000
Seller Representation by Sullivan-Wonhof-Gore, 775-849-9444
Rare, wide .99 acre lot overlooking the green on famed Patty Sheehan-designed 19th Hole in Montrêux. Regal porte-cochère sets the tone for the home’s craftsmanship and grandeur. Ornate custom woodwork throughout. Master on main level. In-law Suite with separate entrance. Atrium, game room and fitness room with never-ending pool. 400-bottle Wine Room.
SOLD $4,400,000 Seller & Buyer Representation by Sullivan-Wonhof-Gore, 775-849-9444
Montrêux Masterpiece! Offering the highest level of custom finish quality. Prestigious cul-de-sac location, perched above 18th Fairway on a double home site for ultimate privacy & views. New chef’s kitchen remodel; 2nd Master Suite with kitchenette; Lutron/AMX systems; Award-winning exterior. 1,700sf courtyard, extensive stone patios
SOLD $3,575,000 Seller Representation by Sullivan-Wonhof-Gore, 775-849-9444
with waterfall, stream, stone fire pit, hot tub, and Viking bar-be-que.
Cover Home: 5635 Foret Circle Reno, NV 89511 $5,250,000 MLS# 190010930
Luxury Home By Price Range Over $1 Million* In Reno/Sparks
ACTIVE as of Mar 31
# OF ACTIVE & SOLD
SOLD Jan - Mar 2020
1
1
1
MILLIONS OF $
Months of Inventory MONTHS OF INVENTORY
Over $1 Million* In Reno/Sparks
2020 2019
MILLIONS OF $ *Source: Northern Nevada Multiple Listing Service (NNRMLS) residential volume for transactions over $1 million in all Reno/Sparks areas (Area 100), January 1 - March 31, 2020, as of 4/8/2020
BERLIN, GERMANY | €18,900,000
The Great Wellness Surge The world of affluence and wealth continues its healthy growth worldwide. Estimates from the Credit Suisse global wealth report indicate there are more than 45 million individuals with a net worth exceeding $1 million USD and the total value of their personal wealth is north
of $360 trillion USD. Both are record highs and exceed benchmark growth rates in population and wealth creation. In short, there has never been a larger market of potential luxury homebuyers available.
GLOBAL PERSONAL WEALTH1 50
$400
45
$350
40
$300
35 30
$250
25
$200
20
$150
15
$100
10
$50
5 0
Value of Wealth (USD Trillions)
HNW Individuals (Millions of Adults)
HNW Individuals | Personal Wealth
$0 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Credit Suisse Global Wealth Report 2019
1
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
Despite the financial health of the affluent, there are challenges for the luxury property market to overcome. Buyers face the possibility of economic or political instability, evolving tax structures and climate-related purchase considerations. Beyond these evergreen challenges, novel issues like the Coronavirus (COVID-19) have impacted market activity in China and across all luxury sectors including technology, travel, manufacturing, luxury retail and more. What is the response to these outsized trends? In a word—wellness. Of luxury homeowners, 48% are tuning out the noise of the world, while 72% say wellness is important because it contributes to their overall happiness. Each year Luxury Portfolio InternationalŽ and YouGov Affluent Perspective delve into the trends, habits and opinions of luxury homeowners around the world to understand what motivates them today. This report covers the trends shaping how homeowners view wellness in their life. Wellness is a growing trend among affluent consumers overall, and specifically among the next generation of buyers, and is estimated to be a $4.2 trillion USD industry worldwide, growing at twice the rate of the global economy.2
2
As wellness shapes decisions made on a daily basis, real estate professionals can expect that these same sensibilities will be incorporated into one of the most important purchases someone makes—their home. These trends are impacting buyers and sellers all over the world:
1 Wellness is central to a life well-lived 2 Home wellness is in growing demand
Global Wellness Institute, Global Wellness Economy Monitor, October 2018
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
Trend #1: Wellness is central to a life well-lived Over 90% of luxury homeowners say their overall personal wellness is very important. Luxury brands have caught on to the trend with wellness-focused spas, travel/tourism, and even in the workplace. Check out the top social media sites and you will find millions of posts tagged with #relax, #selfcare and #liveyourbestlife used
regularly. Google indexes over two million podcasts with thousands of them focused on health and well-being. Luxury homeowners are thick in this trend with 78% using social media and 42% listening to podcasts, giving them a direct line to experts honing in on what they care about most. HOW IMPORTANT IS YOUR OVERALL PERSONAL WELLNESS? Extremely Important
9% 31%
Very Important
60%
Somewhat/Not Very/ Not at All Important
Globally, affluent consumers are focusing on wellness as a way to build fulfillment and happiness in their life. After so much effort in striving, chasing, and working toward success, they find they need ways to build up their own resilience. For Westerners, this can mean maintaining
their health as they grow older and not being a burden on their children. For those in Asia-Pacific, wellness is a path to high performance, and it leads to comparative advantage in a competitive working environment.
WHY IS WELLNESS IMPORTANT TO YOU? BY REGION North America | Europe | Asia-Pacific | Latin America 84% 77% 69% 70%
63%
70%
67% 51%
65%
61%
55% 48%
56% 42%
56% 39%
44% 43%
53% 42%
41% 42%
39%
32%
It contributes to my overall happiness
I want to feel good as I grow older
It helps me perform at my best throughout the day
I do not want to be a burden to my family in the future
It sets a good example for my children
It will prevent unnecessary healthrelated expenses in the future
INSIGHT: Wellness has become a feature of the culture. A life well-lived is the goal. Taking care of the mind, body and soul are essential ways to spend their precious time. It builds internal strength and forms tighter bonds with those they care about most. Wellness activities often require daily practice, making the home the ideal focal point for most consumers.
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
Trend #2: Home wellness is in growing demand projects in the pipeline worldwide as of 2017 there is certainly appetite at the consumer end.
Projections by the Global Wellness Institute show Wellness Real Estate3 is growing faster than other aspects of wellness investment. With 740 residential
PROJECTED AVERAGE ANNUAL GROWTH RATE 2017–2022
8.0%
7.5% 6.7%
Wellness Real Estate
Wellness Tourism
Workplace Wellness
6.5%
6.4%
Thermal/Mineral Springs Wellness
Spa Facilities
Since it is early in the trend for Wellness Real Estate, new ways of meeting this desire are emerging all the time. Wellness at home can be found, for example, with specific kitchen elements* for the management of dietary preferences (e.g., temperature and humidity controlled cabinets, cellar-like storage for root vegetables, apples and other fall harvest produce), meditation spaces, exercise rooms, home spas or saunas, special lighting features for sleep hygiene, air and water filtration and more.
Urban mixed-use areas are particularly benefitting from the Wellness Real Estate boom, especially those catering to younger consumers who are even more interested in focusing on their wellness. This fits perfectly with Millennials, who are keen to have an urban life free from hassles (for example, 47% agree they can see themselves not owning a car one day). Changing work styles from in-office to remote also promotes less need for permanently owned mobility and an increased need for self-care at home.
Wellness Real Estate includes both residential and commercial/institutional developments (such as masterplanned communities, multi-family housing, urban districts and mixed-use projects, resort and spa-based real estate and others). These developments include elements of wellness in design, materials, and building in addition to amenities, services and activities.
At the same time, older Baby Boomers also benefit from the Wellness Real Estate trend as their needs change and downsizing become a priority. Downsizing to a socially-focused community offers the appealing option of an easy way to stay in touch with a community. By being near others it builds up social wellness, which 34% report is a focus in their lives.
* Learn more about the wellness kitchen in LPI Magazine — Vol. 9, Issue 2 3 Global Wellness Institute, Global Wellness Economy Monitor, October 2018
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
LA QUINTA, CALIFORNIA, USA | $2,850,000
ELEMENTS OF PERSONAL WELLNESS ARE A FOCUS IN YOUR LIFE Millennials (23–40) | Gen X (41–54) | Baby Boomers (55–73)
71%
77% 79%
70% 68%
60%
54%
50%
54%
56%
49% 47% 34%
Physical Wellness
Emotional Wellness
Intellectual Wellness
Social Wellness
38%
33%
Spiritual Wellness
INSIGHT: New ways of working and living are contributing to the way affluent consumers think about their home environment. Home choices are becoming more complex as this new factor of wellness becomes available in the very places they live. Experts say convenience and accessibility are valuable components for an effective wellness program.
Article and images used with permission from Luxury Portfolio International. For more info, visit www.LuxuryPortfolio.com/blog
Available 425 Juniper Hill Road Reno, NV 89519 $4,550,000 MLS#200001914
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$5,250,000
190010930 Wonhof, Sullivan & Gore, 775-849-9444
$4,500,000
180003751 Kellen Flanigan, 310-710-4016
5635 Foret Circle
2750 Holcomb Ranch Lane
$4,550,000
425 Juniper Hill Rd.
$4,100,000
6220 Rouge Drive
200001914 Rebecca Dickson, 775-742-2120
190006656 Wonhof, Sullivan & Gore, 775-849-9444
$3,700,000
200003125 Wonhof, Sullivan & Gore, 775-849-9444
$3,000,000
190008912 Kathie Bartlett, 775-741-5675
$2,695,000
200002331 Kellen Flanigan, 310-710-4016
$2,600,000
190012891 David Hughes, 775-771-1783
6845 De Chardin
2595 Spinnaker
3535 Fairview Rd.
750 Brown Street
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$2,500,000 350 Abies
200000313 Joseph Wieczorek, 775-335-5962
$2,450,000
1530 Boulder Field Way
PE
G
G
N
N
DI
DI
N
N
PE
$2,221,000
180016675 5012 Bordeaux Court Wonhof, Sullivan & Gore, 775-849-9444
$1,988,800 8530 Bellhaven Road
$1,850,000
1950 Holcomb Ranch Ln
190014337 Rebecca Dickson, 775-742-2120
$1,990,000 180016451 5024 Bordeaux Court Wonhof, Sullivan & Gore, 775-849-9444
200001013 Lori Welsh, 775-771-6574
$1,985,000
190012908 Diane Macdonald, 775-742-2343
$1,835,000
250 Hirsh Rd.
5036 Bordeaux
190015845 Rebecca Dickson, 775-742-2120
200003320
Wonhof, Sullivan & Gore, 775-849-9444
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
PE
G
G
N
N
DI
DI
N
N
PE
$1,825,000
5084 Bordeaux
180016452 Wonhof, Sullivan & Gore, 775-849-9444
$1,725,000
200004551 20540 Latour Way Wonhof, Sullivan & Gore, 775-849-9444
$1,786,500 180016676 5060 Bordeaux
Wonhof, Sullivan & Gore, 775-849-9444
$1,725,000
190011580 Morgan Martin, 775-772-5601
16860 Salut
$1,695,000
200004348 Marilyn Farthing, 775-771-4948
$1,650,000
200002253 David Hughes, 775-771-1783
$1,649,900
200003448 Wonhof, Sullivan & Gore, 775-849-9444
$1,645,000
200001175 Joseph Wieczorek, 775-335-5962
2145 Green Tree Lane
20541 Chanson
1730 Sharpe Hill
202 S Big Sage
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
PE N DI N G
$1,595,000 180016677 $1,580,000
200004494 20600 Chanson Way Wonhof, Sullivan & Gore, 775-849-9444
$1,495,000
$1,425,000
PE
5048 Bordeaux Court Wonhof, Sullivan & Gore, 775-849-9444
N DI N G
556 Dusty Lane
190008642 Diana Renfroe, 775-843-0777
$1,400,000
200003588 Wonhof, Sullivan & Gore, 775-849-9444
$1,388,000
190002521 Diana Renfroe, 775-843-0777
16925 Delacroix
16020 Geyser Road
200002836 5765 Nordend Way Wonhof, Sullivan & Gore, 775-849-9444
$1,395,000
200004122 6400 Zermatt Court Wonhof, Sullivan & Gore, 775-849-9444
$1,350,000
20 Rancho Manor
200004600 Joseph Wieczorek, 775-335-5962
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$1,250,000
200003506 6415 Zermatt Court Wonhof, Sullivan & Gore, 775-849-9444
$1,233,000
$1,229,000
$1,175,000
200004457 Diana Renfroe, 775-843-0777
$1,150,000
190009844 Diana Renfroe, 775-843-0777
10086 E Desert Canyon Drive
200000188 Jay Kenny, 775-848-6549
10141 Indian Ridge
5110 Belsera Court
200003322 Joseph Wieczorek, 775-335-5962
PE
G
G
N
N
DI
DI
N
N
PE
$1,155,000
190003626 4052 Whispering Pine Loop Larissa Osborn, 775-848-6579
75 Promontory Pointe
PE
G
G
N
N
DI
DI
N
N
PE
$1,140,000
180017103 4028 Whispering Pine Loop Larissa Osborn, 775-848-6579
$1,105,900
190010494 4005 Whispering Pine Loop Larissa Osborn, 775-848-6579
Current Dickson Luxury Listings Click on the MLS number to view each listing online.
$1,097,000
43 Lightning W Ranch
$1,050,000
1400 W Huffaker Lane
190015665 Joseph Wieczorek, 775-335-5962
190016203 J.P. Menante, 775-691-9831
$1,069,999
3172 Vista Favoloso
200004238 Lori Welsh, 775-771-6574
$1,048,000
200002872 Greta Mestre, 775-560-7500
$1,025,000
200002524 Kathy Leggett, 775-287-8620
1871 Laurel Ridge Dr
PE N DI N G
$1,045,000
3481 Cheechako
200001594 Rebecca Dickson, 775-742-2120
4800 S Saddlehorn
Available 20 Rancho Manor Reno, NV 89509 $1,350,000 MLS#20004600
Significant Dickson Realty Sales in 2020
SOLD $2,750,000 Washoe Valley Seller & Buyer Representation by Lori Welsh, 775-771-6574
SOLD $2,500,000
Montrêux
Montrêux
Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444 & Buyer Representation by Greta Mestre, 775-560-7500
SOLD $2,150,000
Montrêux
SOLD $2,115,414
SOLD $1,998,000
Montrêux
SOLD $1,860,000 Montrêux
SOLD $1,800,000
Arrowcreek
Buyer & Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
Buyer & Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
Seller Representation by Darlene Sharpe, 775-338-4102
Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
Buyer & Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
SOLD $1,525,000
South Suburban
Seller Representation by Margie Wonhof, 775-750-5098 & Buyer Representation by Sullivan, Wonhof, Gore, 775-849-9444
Significant Dickson Realty Sales in 2020
SOLD $1,500,000 Montrêux
SOLD $2,325,000 Southwest Suburban
SOLD $1,382,296 Caughlin Ranch
SOLD $1,346,545 Caughlin Ranch
Buyer & Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
Seller & Buyer Representation by Larissa Osborn, 775-848-6579
SOLD $1,335,000
Southwest Suburban
SOLD $1,248,000
West Southwest
Seller Representation by William Browning, 775-232-4509 & Cindy Browning, 775-232-4510
Seller Representation by Diana Renfroe, 775-843-0777
Seller Representation by Joseph Wieczorek, 775-335-5962
Seller Representation by Larissa Osborn, 775-848-6579 & Buyer Representation by Wendy McPhail, 775-338-4463
SOLD $1,331,250
Caughlin Ranch
Seller Representation by Jeannie Cassinelli, 775-742-2846 & Buyer Representation by Diana Renfroe, 775-843-0777
SOLD $1,225,000 Montrêux Buyer & Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
Significant Dickson Realty Sales in 2020
SOLD $1,125,000
Buyer & Seller Representation by Sullivan, Wonhof, Gore, 775-849-9444
MontrĂŞux
SOLD $1,050,000
Old Southwest
Seller Representation by M.C.Pierson, 775-742-9442 & Buyer Representation by Donna Spear, 775-691-7947
Available 750 Brown Stret Reno, NV 89509 $2,600,000 MLS#190012891
WHETHER YOU ARE MINUTES OR MILES AWAY, MONTRÊUX IS A WORLD APART. Montrêux Golf & Country Club, a private golf course community located between Reno and Lake Tahoe. This gated community of luxury custom homes surrounds the 18-hole, Jack Nicklaus Signature Championship Course (Par 72), a world-class Clubhouse, walking trails, tennis, pool, Fitness Center and much more. Dickson Realty agents have helped more buyers and sellers in Montrêux than any other real estate company.
PHOTO COURTESY MONTRÊUX GOLF & COUNTRY CLUB
CAUGHLIN RANCH 775.746.7000
DAMONTE RANCH 775.850.7000
TRUCKEE 530.587.7444
SOMERSETT 775.746.7222
DONNER LAKE 530.587.4811
MONTRÊUX 775.849.9444
PORTOLA 530.832.1700
SPARKS 775.685.8800
DOWNTOWN 775.324.7000
NORTHSTAR 530.562.1140
DicksonLuxury.com | luxury@dicksonrealty.com
© 2020 Dickson Realty. NV Lic #B.0019733. All rights reserved. Although the information above is deemed reliable, Dickson Realty does not guarantee its accuracy. If your property is currently listed for sale, this is not intended to be a solicitation.