Longboat Key, Florida | April 3rd, 2018 – Our Judy Kepecz-Hays team is quite optimistic on the multimillion dollar residence we have listed at Lighthouse Point in Longboat Key just this March. Why? The luxury segment of the Sarasota housing market appears heading toward a sales breakout this year.
By the numbers, it indeed looks like that more sellers and buyers of luxury dwellings would be enticed to engage the market in 2018. The prime housing segment in Sarasota notably entered this year coming from a position of strength, as sales of residences priced at $1 million and over rose by a hefty 24.4 percent in 2017. This pace is notably far better than the 1.1 percent gain in total market turnover last year.
Price-wise, a Winner
To the delight of sellers last year, the double-digit sales growth of luxury residences in Sarasota was matched by a significant increase of the 2017 average sales price in their segment. As per one industry analysis, high-end residential properties sold in Sarasota in the fourth quarter last year had an average price of $2.541 million, representing a remarkable 45.6 percent increase from the 2016 fourth quarter average.
With this uptick, Sarasota was ranked as No. 1 among the biggest winners price-wise in the luxury housing segment across the U.S. markets in the last three months of 2017. What’s even more, industry figures during the first two months of 2018 indicate that our market territory remains prominently on the radar screen of the wealthiest homebuyers.
Sustained Sales Uptick
In January, sales of Sarasota residences priced starting from $1 million rose 22 percent, which upstaged the 9.5 percent overall sales gain of the market during the month. Our region’s top-tier housing sector again outperformed the market in February with a sales gain of 17.2 percent, which compare with the 9.8 percent increase in overall residential sales during the month.
Prospective sellers of luxury houses in particular would be glad to note too that high-end residences have been moving relatively fast on the market. In one exceptional case, our multimillion-dollar residential property in Lido Shores was under contract just 16 days after its market listing.
In January, the median time to contract in the luxury housing segment was cut by 38.1 percent to 73 days compared to the same month last year. The same trend was observed in February, with a 37.7 percent drop to 81 days in the median time to contract for top-tier sales listings.
Luxury Housing Segment’s Drivers
Industry observers attribute the upbeat mood of the luxury housing segment as a carry-over of the stellar performance of the U.S. stock market in the final three months of 2017. The all-time highs posted in nearly all of Wall Street’s sectors have provided confidence among the high-end homebuyers, analysts note.
Sarasota’s rise as a prominent destination for luxury homebuyers gets some lift too from the superior media ratings that our region has been getting. One of the most recent endorsements came from the 52-year old Southern Living magazine which has named Sarasota one of the South’s best cities.
The only city in Florida in this list, Sarasota was chosen based on over 32,000 detailed surveys and the professional inputs of the New York City-based GBH Insights marketing outfit. Sarasota likewise made it to the magazine’s roster of the South’s prettiest cities, a citation which sure can add luster to our city in the eyes of luxury homebuyers.