CNN-real estate

Some East Bay Real Estate Micro-Markets Still Thriving!

All real estate is local, no matter what CNN and The Wall Street Journal claim in their daily news reports.  Just in the East Bay alone there are over 20 micro-markets.  And within those micro-markets there are even a few niche markets – a very specific and unique category of properties.  One of those niche markets that defies the results of the economic meltdown and shifting residential real estate values is equestrian properties.

The East Bay equestrian market is typical of any niche micro-market in the country.  They are centered on a specific hobby that takes money to enjoy and those enthusiasts are willing to spend their money to continue their passion no matter what the economy is doing.  What this requires is a consumer that is winding their way through bad economic times way above all the economic mess.  These are typically owners and leaders of corporations both in the Bay Area and nationally.

Internet marketing is the key for this niche real estate product.  All but one of the Buyers for our equestrian properties came from our global internet marketing strategies.  Inquires for this niche have come from as far away as Europe and we even had a couple fly in from Texas for just 36 hours to preview one specific property they wanted to explore.  We subscribe to eleven different international equestrian websites for our listings because that is where these niche Buyers start – on the internet.  Response time back to them is also critical.  These are Buyers whose expectations of service are at an extreme level.  When they find a professional who is willing to provide that level of service they are very willing to work side by side with them until the transaction is completed.

The equestrian property niche is full of people who participate in all aspects of sports connected to horses;  hunter/jumpers, polo, dressage, and Western saddle competitions.  This group of horse enthusiasts has the cash and when they find the perfect equestrian property that meets the needs of their specific interest they spend it.  Of the last seven equestrian properties that have sold in the East Bay this year we have represented five of them.  All five of these Buyers were presidents and/or owners of local and national companies.  Each of these Buyers put more than 50% down on their purchases and one even paid cash.  They are not concerned with whether the property’s value appraises either. They are very savvy regarding the true value of these properties.  The average purchase price of the properties we represented this year was $2.26 million!  This certainly defies the conventional thinking related to residential real estate the past two years of consumers holding on to their cash.

One of the first things you notice when you are previewing equestrian properties is the Buyers start at the barn, not the house.  They want to know if the horse facilities will be acceptable to the needs of their prized animals.  The top dollar sale of the five equestrian properties we represented this year went to the place that had the most luxurious barn and arena we have seen in many years.  The house at this property was actually an after-thought.  The people that purchased this property had five hunter/jumper horses with an average value of $150,000!  They wanted to make sure their horses’ every need was taken care of within the stables and arena.

Also, the equestrian property Buyers want their purchases to be quiet and discrete.  They are not buying these properties to show off, and they do not want any publicity.  They are some of the most fun people we work with – down to earth and humble people who have worked hard for their success.  They understand that the equestrian lifestyle is what they prefer for themselves and their children.  This continues to be one of the few micro-markets this is thriving in the East Bay in spite of these uncertain economic times. For more information about our international marketing strategies for your real estate, CLICK HERE and I will get back to you quickly.  Until next time…your East Bay lifestyle detective remains on duty.