Luxury condos and ultra-luxury, single family homes for sale today are seeing some of the healthiest market conditions America has had in about 5 years. Two years ago there was an enormous amount of inventory available and just earlier this year there was not enough. Today, this has changed.
Recent reports show that there is a healthy balance right now–it’s both a luxury buyer and luxury seller’s market!
Why Luxury Home Absorption Rates Are Increasing
When the market was poor, luxury owners were taking their homes off the market because they were not selling. But now all the inventory that was abundantly available has sold off and luxury owners are putting their homes back on the market.
Banks also see this rate increase as a good indicator to sell and are putting foreclosures back on the market.
3 Contributing Factors Affecting South Florida:
1. Baby Boomers are actively seeking retirement opportunities in Florida, especially those from the North East and Canada.
2. There has been an increase of international buyers seeking opportunities to invest. Continents like Europe, South America and Asia have growing middle and upper class populations who see South Florida as more affordable with a higher quality of living.
3. Local buyers, traditionally, have always contributed to the luxury absorption rate. Normally, they relocate to the Palm Beach area from Miami.
Why South Florida Is A Great Place To Invest Now
With the national, luxury buyer and seller’s market at it’s healthiest, South Florida provides an additional investment opportunity.
With great weather and some of the world’s most sought after waterfront properties, real estate in South Florida is premium. Real estate in South Florida recovers quickly when it comes to supply and demand because of this.
South Florida also has less land available (making prices higher and investments safer), no state income taxes, and major and international airports.
Though Florida is popular for vacation and second homes for luxury buyers, more people are moving here to stay.
In Boca Raton the real estate market is seasonal. Starting in late October and on through May more properties will come on to the market as the Florida snowbirds and vacationers return.
This Fall will be a very good time to keep an eye out for what becomes available.
Whether you are considering a permanent home, vacation home or second home, now is the time and there is no other place like South Florida to invest!
What Happens If I Don’t Buy Or Sell Now?
Prices of homes on the market will continue to rise and sellers will be able to afford to hold on to their homes until they get the offer they want.
If sellers wait too long, holding costs, mortgages and taxes will continue to add up. Condo maintenance fees or country club fees will also continue to be a payment.
Buyers lose their buying power when they wait too long as interest rates and prices go up.
If you pass up this opportune time you may have the option to buy distressed properties and renovate them. We’ve seen some luxury buyers tear down and rebuild homes on desirable properties along the Intracoastal Waterway.
One of our recent luxury buyers purchased two homes adjacent to one another and tore them down to create one larger home on extended property.
If you miss out on waterfront properties, another option will be properties in areas like Downtown Delray Beach or Downtown Boca Raton which are close to the ocean but not directly on it.
We’re seeing more luxury buildings being built in these downtown areas due to the lack of land available for new buildings on the water.
In the near future there will likely be an increase in luxury buyers purchasing adjoining luxury apartments and renovating them to one large luxury condo.
Why A Good Real Estate Agent Makes A Difference
Real estate is much like the stock market: the market and the buyers tell us what to sell a home for.
A good Real Estate Agent who specializes in luxury homes can be your best friend during these prime times to buy and sell.
Pricing or making an offer on a listing can be a very emotional experience for the seller or buyer, but an agent lives and breaths market data.
Therefore, he or she can help walk a homeowner / homebuyer through that process with great insight.