85 Percent Expect Home Prices to Increase Over Next Five Years

PARSIPPANY, N.J.–(EMWNews)–Homeowners at the highest end of the real estate market still have a

dream house in mind and zip code does play a factor in where some call

home, according to the 2008 Coldwell Banker Previews International^®

Luxury Survey. Top locations for a dream home among those

surveyed were on an island (27 percent) or in a rural country setting

(22 percent), followed by the suburbs (18 percent) or an international

destination (18 percent). Additionally, 17 percent of those surveyed

confirmed that they have considered moving expressly to obtain a

specific address or zip code. Eight percent of respondents actually

admitted to having been influenced to purchase a property to “keep

up” with friends or family.

In addition, high-end homeowners remain optimistic about home values

with a strong majority of the affluent homeowners surveyed (85 percent)

expecting the price of their homes to increase over the next five years,

a sharp increase from the 66 percent tallied in the 2007 survey. In

addition, four out of five of these homeowners surveyed believe the

increase in value will be “significant”

to “moderate” (81

percent).

“Key findings from our annual survey of the

luxury market demonstrate that the typical million-dollar homeowner is

invested not only in the value of their home as a current part of their

portfolios, but also see long-term gains coming from this investment,”

said Jim Gillespie, president and chief executive officer, Coldwell

Banker Real Estate LLC. “Interestingly while

44 percent of those surveyed indicated that they plan to stay in their

primary residence for at least 10 years, they also dream of owning the

perfect home.”

The 2008 Coldwell Banker Previews International Luxury Survey

polled 305 U.S. homeowners whose primary residence is valued at over $1

million ($2 million for California residents*) and who have investable

assets of more than $1 million. The average annual household income of

the 2008 luxury survey’s respondents is

$754,000.

When asked to identify a location for a dream home, the following were

cited by respondents:

Second Homes and the Lure of the Beach

The survey revealed that about half of the affluent homeowners surveyed

(48 percent) own at least one secondary residence. Most of these

properties are located in beach areas (45 percent). For those who own

second homes, significantly more men than women cited that the primary

purpose of the residence was a retirement property (17 percent versus 8

percent).

Interestingly, a significantly greater percentage of older respondents

(ages 65-plus) said they are considering purchasing an additional

property as a new primary residence (42 percent versus 19 percent of

respondents ages 64 and younger).

For luxury homeowners, the following are the desired locations

identified by respondents for a secondary home:

“Must

Luxury Amenities

Whether inside or outside, “must have”

luxury amenities such as designer kitchens, formal landscaping, water

views, customized home entertainment centers and swimming pools are the

top amenities of choice for luxury homeowners.

“Must have” luxury

amenities in the home that respondents either currently have or are

considering getting, include:

“High-end kitchens, a well-kept appearance

outside of the home, and swimming pools have become the standard for

luxury homeowners,” said Gillespie. “These

areas of the home attract attention and have long been critical factors

when considering the value of a property.”

Formal landscaping was, by far, the amenity mentioned most often by

respondents as something they currently have surrounding their primary

residence (77 percent). The following are additional luxury amenities

that are found surrounding affluent homes:

Relative to maintaining luxury homes, those surveyed indicated that

landscapers (95 percent) and housekeepers (62 percent) were a must. Of

note, housekeepers were significantly more common among those ages 54

and younger (72 percent versus 55 percent of those ages 55-plus).

Best In Show

Approximately three in 10 respondents have specific rooms in their homes

that are used to impress houseguests (29 percent). Among these

respondents, the living room (72 percent) is the primary room that is

used to impress houseguests. Only one in 10 or fewer respondents said

any other rooms in their homes are used to impress.

The survey was conducted online by independent market research firm,

ICR, in April 2008 and commissioned by Coldwell Banker Previews

International^®,

the exclusive Coldwell Banker^®

service dedicated to luxury real estate. In 2007, the Coldwell Banker system

participated in more than 25,000 transaction sides of homes priced at $1

million or more in 2007 with a total sales volume of $46.6 billion.

* The survey questioned 305 owners of homes with a primary residence

valued at greater than $1,000,000 and investable assets greater than

$1,000,000. The survey questioned owners of homes valued at $2 million

and up in the state of California. This was done because, according to

the California Association of Realtors, the existing-home median price

in the state is $403,870, compared with the national existing-home

median price of $202,300 (as of April 2008, according to the National

Association of Realtors).

About ICR

ICR is a full-service market research firm specializing in designing

customized methodologies across 12 industry sectors and a leading

provider of omnibus research services. Our Advanced Research Methods

group designs and executes custom research and solutions to complex

business challenges on a wide range of issues, including global research

in over 90 countries.

About Coldwell Banker Previews

International^®

The Coldwell Banker Previews International^®

program has been marketing luxury homes since 1933. This luxury home

marketing program has been exclusive to Coldwell Banker^®

affiliates since 1980. The exclusive group of certified Previews^®

Sales Associates make up only 10 percent of the more than 111,000 Coldwell

Banker sales associates worldwide. Coldwell Banker became one

of the first national residential real estate brands to launch a second

Web site totally dedicated to the luxury real estate market. The Web

site www.coldwellbankerpreviews.com

features more than 15,000 luxury properties with an average listing

price of over $1.8 million.

About Coldwell Banker^®

Since 1906, the Coldwell Banker^®

organization has been a premier full-service real estate provider. In

2007, Franchise Times magazine’s

prestigious Top 200 issue ranked the Coldwell Banker system No. 1

in real estate for the eighth straight year and 12th among franchisors

in all industries. The Coldwell Banker System has approximately

3,600 residential real estate offices and 111,500 sales associates in 47

countries and territories. The Coldwell Banker System is a leader

in the industry in residential and commercial real estate, and in niche

markets such as resort, new home and luxury property through its Coldwell

Banker Previews International^®

division. It is a pioneer in consumer services with its Coldwell

Banker Concierge^®

Service Program and award-winning Web site, www.coldwellbanker.com.

Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation,

a global provider of real estate and relocation services. Coldwell

Banker^® is a

registered trademark licensed to Coldwell Banker Real Estate LLC. Each

office is independently owned and operated.

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