http://finance.yahoo.com/tech-ticker/house-prices-are-still-10-too-high-says-barry-ritholtz-535388.html?tickers=&sec=topStories&pos=2&asset=&ccode=

This new trend was recently covered on CNNMoney.com with an article entitled:  “Say Goodbye to the McMansion”.

This is good news for traditional home builders like Snyder Builders in Saratoga Springs who anticipated this trend several years ago.  The new subdivision, Oak Ridge, provides a traditional style neighborhood with a more social concept with small lots.  The homes in Oak Ridge are of the highest quality available in Saratoga Springs, and look 100 years old day one.  They are the ideal choice for people who value quality, custom features over voluminous square footage.

To read the CNNMoney article, click here:   http://money.cnn.com/2010/08/26/real_estate/the_typical_homeowner/index.htm

The bottom must be reached to stimulate sales and reverse this trend.  

In closer Saratoga Springs, the properties over $1M are also stalled, while primary residences between $300K and $900K are making a move.   

The good news is that interest rates are at their lowest point ever and it is still a buyer’s market, in fact a strong buyer’s market in the luxury space.  The buyers can be very picky since there is so much inventory for them to choose from.  To sell in todays market and entice these buyers, it is important that sellers stay in close contact with the competitive pricing in the marketplace.

The reality is that the more time that goes by, the further from market price the listing will be and the more unrealistic this seller will seem, and that in and of itself will keep people from coming to see it. No one wants to waste their time going to see something that is overpriced, and the public perception is that seller doesn’t really want to sell.

When dealing with a receding housing market is important to review pricing every 45-60 days and maket the necessary adjustments to ensure that your property appears priced right and to ensure that buyers will want to come see it.

Although rates have held below 5 percent since early May, Michael Fratantoni of the Mortgage Bankers Association notes that demand for purchase loans has fallen in six of the past seven weeks and now is at a 13-year low. Consumers have grown used to low rates, he explains, adding that they balk at buying because they are more concerned about stagnant wages and high unemployment.

Source: Washington Post, Dina ElBoghdady (06/25/10)

The address is 4587 Lake Shore Drive, Bolton Landing, NY 12814.

A reception will follow, by invitation only, at The Boathouse Restaurant on Beautiful Lake George.

Whether rare art items, antiques, or unique luxury properties, the smart money investors are coming back to the plate and making investments in the things that can only be bought be a few.  

Take note, we are on the verge of the next stabilization of the high end real estate market.  Read today’s Wall Street Journal post to read  more about this exciting market move:   http://online.wsj.com/article/SB10001424052748704717004575268573660359734.html?mod=WSJ_hpp_sections_realestate”

I found this article very interesting and it significantly points to the trend toward Traditional Neighborhood Develops and the many benefits of living with houses built for the way people live.  In Saratoga Springs, the primary location that supports this criteria is the Oak Ridge subdivision:  http://selectsothebysrealty.com/oak_ridge.php.   Here is the article:

By Steve Kerch, MarketWatch

LAS VEGAS (MarketWatch) — Americans want smaller houses and they are willing to strip some of yesterday’s most popular rooms — such as home theaters — from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show here this week.

“This is a traumatic time in this country and the future isn’t something we’re 100% sure about now either. What’s left? The answer for most home buyers is authenticity,” said Heather McCune, director of marketing for Bassenian Lagoni Architects in Park Ridge, Ill.
Winter garden work to prep for spring

WSJ’s Anne Marie Chaker gives a tour of her basement garden and demonstrates how to get a head start on seedlings in the dead of winter.

Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,” she said. The key for home builders is “finding the balance between what buyers want and the price point.”

For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group in San Antonio, Texas. Large kitchens that are open to the main family living area, old-fashioned bathrooms with clawfoot tubs and small spaces such as wine grottos are design features that will resonate today, she said.

“What we’re hearing is ‘harvest’ as a home theme — the feeling of Thanksgiving. It’s all about family togetherness — casual living, entertaining and flexible spaces,” Lavender said.

Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home-buyer preferences, said there are 10 “must” features in new homes:

1. Large kitchens, with an island. “If you’re going to spend design dollars, spend them where people want them — spend them in the kitchen,” McCune said. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.
2. Energy-efficient appliances, high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, he said. While large windows had been a major draw, energy concerns are giving customers pause on those, he said. The use of recycled or synthetic materials is only borderline desirable.
3. Home office/study. People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the “shift from boom to correction,” Cardis said.
4. Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general, he said. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.
5. Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada, Cardis said. And the idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.
6. Ceiling fans.
7. Master suite soaker tubs. Whirlpools are still desirable for many home buyers, Cardis said, but “they clearly went down a notch,” in the latest survey. Oversize showers with seating areas are also moving up in popularity.
8. Stone and brick exteriors. Stucco and vinyl don’t make the cut.
9. Community landscaping, with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.
10. Two-car garages. A given at all levels; three-car garages, in which the third bay is more often than not used for additional storage and not automobiles, is desirable in the move-up and custom categories, Cardis said.

Steve Kerch is assistant managing editor and personal finance editor of MarketWatch in Chicago.

Here is the article:   Click to read on Bloomberg.com

This article shows some of the incredible pieces and where the results have ended up:  http://www.businessinsider.com/sothebys-auction-items-2010-4#brilliant-cut-rare-blue-diamond-geneva–23-million-1

Here is a link to the Sotheby’s website which shows all results.  These numbers are mystifying:   http://www.sothebys.com/app/live/event/EventResultsLanding.jsp