Luxury Home Outlook
The local real estate market experienced a slight decline in sales throughout 2022. This anticipated correction followed the significant increase in sales during 2020-2021. Although the average sold price dropped in mid-2022, this figure stayed equivalent to December 2021. Positives mark the year ahead for Sarasota-Manatee luxury real estate. Resale inventory and highly desirable properties maintain an appreciated value due to undersupply of opportunities. Despite interest rate hikes and general uncertainty about the economy, demand for luxury homes continues, especially in Florida. If you own a luxury second home that isn’t being used as much anymore, now might be the time to sell.
Is it time to sell your second home?
During the height of the pandemic, second homes became popular due to the rise in work-from-home flexibility. Owning a second home, especially in the luxury market, allowed those homeowners to spend more time in their favorite places or with different home features. Keep in mind that a luxury home is not defined by price alone. In a recent article, Investopedia identifies additional factors indicative to luxury home category: location (such as on the water or in a desirable city) and features (high end design touches and distinctive or innovative floorplan details).
A recent report from the Institute for Luxury Home Marketing highlights the significant role of remote work in sparking demand for second home, as well as luxury homes: The unprecedented ten-fold increase towards remote work since the pandemic is an historic development that will continue to fuel second home demand for many years to come.
Anyone who currently owns a second home might give serious consideration to selling. Circumstances alone may prompt a season of evaluation. Some second homeowners may shift back to working in the office while others simply recognize a change in their priorities and needs. Perhaps, a marked decline in the amount of time spent at a second home informs the decision to make a change.
Luxury Home Highlights
If you own what is considered a luxury home, buyer demand for it may be even greater. In another report, the Institute for Luxury Home Marketing explains: The last few years have left their legacy for the luxury market. While it might only represent a small percentage of the overall real estate market, luxury homeownership’s influence is growing. Not only has the purchase of homes valued over $1 million (a figure considered by the National Association of Realtors to be a benchmark for luxury) tripled from 2.6% to 6.5% since 2018, but demand for multiple luxury properties has soared over the last two years.
This phenomenal increase has been driven by a growing affluent demographic who consider owning a luxury property a necessity in their asset portfolio. All indications are that this trend is here to stay, albeit that demand is set to return to a more sustainable level.
The bottom line: If you own a luxury second home without the time or ability to maximize its use, now is the time to sell. Buyers continue to search the market for a home like yours. We live in an amazing place! New residents will continue to relocate. Your second home may hold the key – for them and for you.
If you’re looking to sell your home in the Sarasota area, you can count on my real estate services. With experience helping clients buying and selling luxury properties in Sarasota-Manatee County, I can ensure that your sale is as straight forward as possible. I will guide you through the process from start to finish – contact me today at 941.266.0529.