Following the Luxury Market

The red line indicates the number homes and condos over $1 million that were put under contract in Sarasota county. The bar chart represents the number that closed.

Notice the spike in March of luxury properties that have gone under contract as well as the number of closings.

As far as the entire market goes inventories have leveled off. Properties that are priced well will get activity. The trouble we have in some segments of the market is that there are not enough recent sales to come up with a proper valuation.

A client of mine lost out on a house recently that had multiple offers. There is liquidity in this market at the right price.

Sellers need to value their property based on sales of the most recent comparable properties, preferably within the last 3 months if possible. Do a thorough valuation of what has sold, what is currently for sale and what has not sold. The general market dictates what a property is worth, sellers just decide if they are willing to take that price or not. Valuations in the luxury market can be a little more difficult because of the uniqueness of each property.

Buyers also need to examine what is currently going on in the market. For example, let's say you were thinking of buying a condo on Longboat Key. The unit you are thinking of buying is listed at $799k. If you look back over the last few months and see 2 similar units that closed for $765k and $785k the chances of you getting it today for $650k are slim.