The First Numbers on the National Luxury Market Rebound in 2012January 3, 2013
We have reported of the national recovery throughout 2012, and since we specialize in the luxury real estate marketplace we were thrilled to report some incredible news reported by the Wall Street Journal this week. In Fort Lauderdale, in particular, there has been an incredible shrinking of inventory and home prices in all categories are on the rise, consistently. Homes above the $1 million dollar mark have been routinely purchased and there has also been a decline in distressed properties, so when a distressed luxury property comes on the market, bidding wars are commencing from parties both domestic and international. The rise in the national luxury domestic buyer is back now more than ever. This increase in the national demand for luxury property has been ushered in by increases in buyer confidence, foreign demand, sustained low mortgage rates, and declines in home inventory. Homes for sale in the US in the over $1 million dollar bracket rose by 9% in the first nine months of 2012 compared with the same period in 2011 and this is the highest in 4 years, according to DataQuick, a real estate tracking firm that records data across 98 US Metro areas.
Many homeowners looking to sell across the nation are holding out for further value increases, which were recorded 6 years ago, however the supply of million dollar and above homes is concurrently down by 8%, as reported by Realtor.com. The number of distressed luxury condominiums and homes has decreased by 33% from last year according to Zillow.com, and has decreased by over 50% from 2010. There are more luxury buyers than sellers on the market, and most especially in Fort Lauderdale, where in some areas the supply is reported at 6 month demand, compared to the national average for luxury residences which is at a 12 month supply. International investments are prevalent given favorable exchange rates and the popularity and access of Fort Lauderdale have continued allure even in what was considered a down market. If you are considering listing your home, we would encourage you to do so now and are pleased to provide a complimentary comparative market analysis. We look forward to reporting the latest news as the year end reports are announced.