Realtor.com recently looked at the top 10 entry-level luxury markets by county and home price increases. The results are surprising.
Here’s the list by county including the county seat: Sarasota, Florida (North Port); Queens, New York (Queens); Collier, Florida (East Naples); Douglas, Colorado (Castle Rock); San Mateo, California (Redwood City); King County, Washington (Seattle); Marin County, California (San Rafael); Snohomish, Washington (Everett); Hudson, New Jersey (Jersey City); and Santa Clara, California (San Jose).
As home prices continue to increase, the definition of luxury takes on a new meaning across the country. Realtor.com measured these markets as “89 primary and secondary luxury counties, looking at yearly movement in the entry-level luxury price boundary, defined as the top 5% of all residential home sales in a given market per the Realtor.com sales database with full data up until March 2018.” Not included in the number crunching were: Honolulu, Hawaii; Fairfield, Connecticut; Nassau, New York; Washoe, Nevada; St. Louis, Missouri; and Dallas, Texas.
Here’s how Javier Vivas, Realtor.com’s director of economic research, explains the numbers and markets: “We looked at the top of each market from a local perspective. In Sarasota County, recent federal tax reform seems to be a driver in that market.” Florida, with no state income tax, is appealing to retirees in cutting down their potential overall tax bill.
According to Realtor.com, Sarasota County showed an annual 19.1% annual price increase, ringing in with a luxury price of $993,000 (at the top 5% of sales). Listen to Michael Saunders, founder and CEO of Michael Saunders and Co., who has sold luxury real estate around Sarasota and beyond for four decades. Today, she has 26 branch offices in three Florida counties. “Sarasota is finally on people’s radar. We have always been committed to arts and culture. Now we have so many top offerings rivaling that of a major city. We have ballet, theaters, an orchestra, opera, museums and art galleries. That is what makes us different from other fun in the sun destinations for those buyers who want a community with the arts. Philanthropists see how they can really get involved here and make a difference.”
Saunders points to a continuing trend of seeing buyers from California. Also, residents of New York, New Jersey and Chicago fleeing the winters are now showing s strong interest in buying in Sarasota instead of Palm Beach and Miami. “We have a number of high-profile residents that love Sarasota because they can lead a low-profile life if they choose to,” Saunders adds.
Ron Shuffield, president and CEO of EWM Realty International in Miami, is another long-time Florida real estate industry leader. Shuffield’s company is one of the largest real estate service firms in South Florida. It is a subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate. “As the five-star St. Regis Hotel & Residences and The Ritz-Carlton Residences, Sarasota have established a presence there, the area will only increase in its attraction for that affluent buyer. It’s a different market than Miami in terms of a lower-key lifestyle. Yet in Sarasota, residents and visitors have all the best in arts and culture available.”
One of the biggest surprises to make Realtor.com’s list is Queens, New York. “What we are seeing with Queens in terms of a luxury price of $1,240,000 with a 15.1% price increase are buyers who can’t afford Brooklyn and are going to Queens,” Realtor.com’s Vivas observes.
As prices continue to climb, expect the boundaries of luxury markets to expand.
