Luxury Homes Market Rebounding
The market for million-dollar-plus homes and condominiums is returning after being largely dormant in Southwest Florida for nearly five years.
Real estate agents say the market's upper-end segment has nearly rebounded, based on sales and pending sales. Many compare the current streak of sales — and the number of homes on the market — to the boom times of 2005.
The renewed interest in seven-figure homes is spurring multiple offers, a trend not seen since 2007.
Sales of home for $1 million or more were up 48 percent from last year for Sarasota, Manatee and Charlotte counties.
Those high-end sales come as many facets of the local real estate market — most notably upper-strata mansions of 10,000 square feet or more — have begun to percolate again.
Fueled by Wall Street gains, rising consumer confidence, beefed up demand for high-end homes amid shrinking inventory, and seller flexibility on price, buyers appear poised to make deals that were rare three years ago.
Another clear sign of the change is the inventory of million-dollar homes on the market. Currently there is a 20-month supply of $1 million and up properties; while that sounds like a lot, that figure is identical to August 2004, when Southwest Florida residential real estate began to rise on a wave of low interest rates, easy loans and rampant speculation.
Real estate in all price ranges is a 7-month supply. That is a level that traditionally represents a balanced market for both buyers and sellers.
These stats are encouraging and once again show that the real estate market in our area is moving in the right direction.
If you would like to know the market stats for your neighborhood, don't hesitate to contact me!