How Will Cryptocurrency Affect the Housing Industry in 2019?

Leading Real Estate Companies of the World EVP of Global Operations Chris Dietz shares insights on how crytocurrency will affect the housing industry in 2019 in this article, from Showhouse, a popular UK outlet for the house building industry. Among his sources, Chris cites a recent research report from LeadingRE member Strutt & Parker, New Horizons: Housing Futures.

A year ago, the sale of the first new homes in exchange for cryptocurrency was reported in the UK press as a gamechanger, and yet little has changed over the last 12 months, writes Chris Dietz, Executive Vice President of Global Operations for Real Estate Companies of the World.

This had the potential as a key moment for the house building industry, with much debate amongst property professionals as to whether this history making sale would irrevocably change the nature of the new homes market.

However, as we draw to the end of 2018, cryptocurrency home sales remain few and far between, and there is little expectation in the industry that this will change in the immediate future. Indeed, in a recent survey of our European members, many of whom have dedicated new homes teams, only a handful stated their belief that cryptocurrency will be a widely accepted method of payment by 2025 and few shared plans to develop as specialists in cryptocurrency. Continue reading article >>

Wellness Spotlight: Top Trends for Home Gyms in 2019

Owing largely to new technologies, the fitness industry has evolved more over the past five years than it has over the previous century. Newcomers like PelotonTonal and MIRROR – which combine equipment with virtual classes and instruction – are driving a shift towards home gyms. And both health devotees and casual users alike are picking up the trend.

This reemergence of the home gym and wellness sanctuaries has steadily curbed demand for traditional club and studio memberships. Why go to the gym when you can get the same quality workout in from the comforts and privacy of your own home?

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In 2019, technology-enriched in-home fitness experiences are the top trend for luxury home gyms, creating endless opportunities for those looking to stay healthy without leaving their house. From on-device embedded screens to casting popular fitness apps on your big screen, streaming your favorite yoga, cycling and other classes into your home can afford users a whole new realm of fitness options.

These advances in technology also make building a home gym less of a chore. One needs only minimal equipment to have an efficient home gym, which, in turn, frees up time and space for other mindful pursuits – like yoga and meditation, which are the second biggest luxury fitness trend this year. In addition to a good workout, more and more individuals want a holistic, spa-like experience built into their home gym.

Advanced lighting and temperature controls make the list as the third luxury home gym trend for 2019. Consumers want special lighting for different times of day, and heating and cooling depending on the activity. Increasingly, wellness-minded homeowners are installing infrared heating systems for yoga or meditation, coupled with the ability to quickly cool the space for fitness and cardio activities.

When you’re building or remodeling your luxury home gym, selecting the right equipment is key. To do so, it’s essential to consider the unique fitness goals for each family member who will use the space. Some equipment can be used in multiple ways, whereas others can box you into more singular uses.

Also, consider how much space you have to work with. Are you building a dedicated room or just looking to add equipment to an office or garage space?

Finally, consider your budget. Home gyms can be set up for a few hundred dollars with small ancillary pieces of equipment that are portable and easy to store. On the other side of the spectrum, luxury wellness sanctuaries can cost significantly more. Whatever your budget and space, a modern and functional luxury home gym is no longer the burden it once was.

If you have questions about designing and building your dream home gym, we are happy to assist with a complementary consultation. We provide health and wellness services through Jackson Hole Real Estate Associates/Christie’s International Real Estate’s Chief Wellness Officer, a service offered exclusively to our clients. Contact us for more information.

Global Economic Insights: The Impact of U.S. Interest Rate Increases in 2018 on Global Housing Markets

In the latest edition of Global Economic Insights, LeadingRE’s Chief Economist Dr. Marci Rossell, Ph.D., addresses how the increased mortgage rate in the U.S. is the single biggest force moving housing markets globally.

The largest factor impacting housing markets globally in 2018 was interest rate increases in the United States. The U.S. Central Bank raised the Fed Funds Target Rate three times over the course of the year and is expected to raise it again in December.

Global investors have three main choices for allocating their portfolio:

1. Bonds

2. Stock Markets

3. Real Estate Markets

After the financial crisis of 2008, the Federal Reserve dropped the Fed Funds Target Rate very low. This rate decrease forced global investors out of bonds and into stocks and real estate, helping those markets recover.

With four interest rate hikes in 2018 totaling 100 basis points, the Fed Funds Target Rate sits above 2%, which is the often the tipping point for portfolio allocations. Global investors are more willing to purchase U.S. bonds instead of investing in stock and real estate markets. In turn, we’ve seen money flow out of stock markets worldwide. As of the end of November, stock markets are down everywhere except in the United States, which also means money has flowed out of real estate investments.

Contact Christy and Garth Gillespie for more information on the real estate market.