Market Update - Sarasota Luxury Homes

Today in the Sarasota Herald Tribune there was an interesting article - New Spike Seen in High End Homes. It is an interesting read about Sarasota luxury homes. I blogged about an active luxury market months ago - Luxury Sarasota Homes & Condos Selling and Sarasota Luxury Homes Heat Up.

Here are a few highlights from the article:

There are 14 luxury homes under construction on Bird Key with construction costs (not land value) to exceed $14,000,000.

According to economists and market watchers the overall activity on Bird Key is a reflection of growing optimism among wealthy home buyers that the economy has passed through its darkest days.

In the unincorporated areas of Manatee and Sarasota counties and on Longboat Key, builders have begun construction of 49 luxury homes during the 12-month period ended June 30 at an initial cost of $58.5 million. That compares with 32 homes valued at $31 million during the preceding 12 months. Those numbers do not include Bird Key, Anna Maria Island and the city of Sarasota, where at least 40 more high-end homes are under construction at a total cost of around $40 million.

Court records show that at least one third of 115 luxury homes permitted in Manatee and Sarasota counties since July 2009 have been purchased by people from out of state or out of the country.

"I think we've reached the low level on pricing," said Todd Johnston, a Sarasota luxury home builder who has seven homes under construction from Manasota Key to the Manatee River. "Construction is never going to get cheaper than it is right now."

Banker Tramm Hudson sees evidence to be optimistic for the region. "I believe the residential sector will lead us out of this recession," said Hudson, head of Florida operations for Stearns Bank. "I see what's going on in Lakewood Ranch, how the inventory is way down and how builders are starting to put up good numbers."

23,600 Square Foot Under Construction West of the Trail

I was boating a few weeks ago and noticed this huge waterfront house under construction in the West of the Trail neighborhood. Unless you happen to drive down Bay Point Drive you would only know it existed by seeing it from the water. Today's article confirmed that the home is owned by former U.S. representative Katherine Harris. She and her husband are building an enormous 23,600 square foot waterfront home on Bay Point Drive. What a fabulous location.

Sarasota Luxury Homes Inventory

The light green bars represent the number for sale, red line indicates pending sales and the dark green bars are the closed transactions. I just picked $1,000,000 as an arbitrary number to define "luxury". Many would argue that a $950,000 home could be considered luxurious.

Above $1,000,000

Below is a graph showing single family homes in Sarasota county above $1,000,000.

	Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Jun. 11	Jun. 10	% Change	Apr. 11 to Jun. 11	Apr. 10 to Jun. 10	% Change
For Sale	402	504	-20.2%	433	521	-16.9%
Sold	11	9	22.2%	16	15	6.7%
Pended	14	13	7.7%	16	17	-5.9%

Compared to a year ago there are 20% fewer homes over $1,000,000 for sale and higher pending and closed transactions. A positive sign. However, based on closed transactions Trendgraphix.com reports a 36.5 month supply of homes in this price range.

Above $2,000,000

Below is a graph showing single family homes in Sarasota county above $1,000,000.

	Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Jun. 11	Jun. 10	% Change	Apr. 11 to Jun. 11	Apr. 10 to Jun. 10	% Change
For Sale	174	199	-12.6%	183	211	-13.3%
Sold	6	3	100%	6	6	0%
Pended	6	2	200%	5	6	-16.7%

There are fewer single family homes in Sarasota county for sale above $2,000,000. Again, a good sign. There are also more pending sales and closed transactions when comparing June 2010 to June 2011.

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