Florida has long been a sought-after real estate commodity for retirees. Blue skies, sandy beaches and beautiful weather are a magnet for people around the world. Southwest Florida is no stranger to a booming real estate market and two counties specifically, Collier and Sarasota, have made their way into the Top 10 Fastest Growing Luxury Markets. Due to stagnant luxury prices in places like New York, Chicago, and Boston, residents of the Northeast and Midwest are now looking south as they begin to realize benefits of not only living in Florida but also in terms of higher returns on their investment that stems from purchasing a home in Florida.
The increasing prices indicate a few different things about the current market. First, with the stock market prospering and high confidence from consumers, the demand for luxury homes is higher than it’s been in recent years. Individuals want to spend their money while they have it, which resulted in an increase in luxury prices in both Sarasota and Collier by 19.1% and 13.7% respectively. When demand is high, this in turn typically means that supply is low, which is good news for builders and developers. Luxury homes are moving quickly, usually lasting an average of 70 days on the market, which is 10 days fewer than last year. This is particularly good news for areas like Miami that saw overdevelopment in past years which lead to massive cancelations of existing projects and postponing new ones.
With 7 different cities in Florida boasting substantial increases in luxury prices, the state’s average sale price of luxury homes has increased by more than 20% year over year. Buyers, sellers, builders and developers are reaping the immense benefit of the spike in demand for luxury homes.