Florida’s real estate industry is celebrated presently in early 2019, and confidence in the industry is very high. Some believe that the real estate market in Florida is returning to normal, but luxury sales are growing.
Take, for example, the story of one buyer who purchased a mansion for $48.8 million. He tore it down before rebuilding and creating his perfect home on the property.
What’s most interesting is that these types of luxury purchases are becoming more common. The number of purchases taking place are increasing, as are the sale prices. While that’s good news for sellers, there are some other market conditions to consider.
In the three major markets in the region, including cities such as Tampa, Sarasota and Naples, the market has been high for a while. Now, it’s starting to level out, which some believe is healthy for the market overall. Sales in Sarasota-Bradenton dipped, with closed sales dropping by 14.4 percent in Dec. 2018. In Naples-Fort Myers, growth is continuing and sale prices are increasing, too. New construction is part of the reason why the area is still doing well despite slowdowns in some other parts of Florida’s real estate market.
In Tampa-St. Petersburg, new construction means inventory is up. While that can sometimes cause prices to dip, the area is in high demand, which means that the average sale price of $1 million is being met and properties snapped up by eager buyers.
The good news for buyers is that appraisals are tight, which means that it’s easier to know the true value of a home in Florida. This can help save money and prevent you from buying a property that isn’t worth the payments.