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Luxury Homes Remain In High Demand In Pinellas County FL
Dated: June 27 2022
Luxury Homes Remain in High Demand in Pinellas County, FL
As people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this category. In a recent article, they point out that a luxury home isn’t only defined just by its price. Location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features and interior finishes available.
In May of 2022, the median luxury home (priced at $1M or more) went under contract in JUST 5 DAYS and sold for 100% of the original list price in Pinellas County. These stats signal a strong market for our area that continues, despite interest rate increases and inflation. Additionally, due to low home inventory, only 149 luxury properties were sold in Pinellas County in May. Of those sold homes, 60% were paid for with cash. In the $2M+ price range, 65% were paid for with cash.
So why are luxury homes in such high demand in Pinellas County? For starters, we have some of the BEST beaches and boating water in the state of Florida. Luxury buyers often target locations that offer something unique about the location that will continue to grow in value over time. We can’t create more beach frontage and deep boating water is coveted by many waterfront homeowners and boating enthusiasts, making waterfront homes in Florida a perfect target for luxury home buyers. Pinellas County also has a booming job market, with unemployment sitting at just 3.1% in June of 2022. There’s no state income tax in Florida as well, another desirable factor that's bringing more and more c-suite employees to the state. Many of our luxury clients that have relocated from other states have come here looking for a better quality of life outside of their jobs and lower taxes, among other things.
According to the Luxury Market Report from the Institute for Luxury Home Marketing, there’s been a substantial increase in how many buyers are purchasing luxury homes over the past 2 years. It says:
“. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.”
If you own a luxury home in Pinellas County or the Tampa Bay area, it could be a great time to list your house today while demand remains so high. But first, let’s dig even further into where the demand is coming from...
What’s Driving the Heightened Buyer Demand for High-End Homes?
The same report says more people have reached a certain net-worth threshold and that’s contributing to the increased interest in luxury housing:
“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%.
This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”
So, if you’re looking to make changes to your real estate portfolio or are thinking about selling your current luxury home, it may be a great time to get it listed and benefit from the high demand for luxury homes in our area.
Search luxury homes for sale in Pinellas County now, by CLICKING HERE
Want to get an online estimate on the price of your luxury home? CLICK HERE
(Remember this is an online 'estimate' only. The most accurate valuation comes from an in-person analysis of your home by one of our luxury home specialists)
If you own a luxury home and want to know how strong demand is in your area, let's connect so you can capitalize on current market conditions while buyer demand for upscale homes is so high.
Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....
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