Preliminary numbers are in and the luxury home market is officially on the rebound. Dataquick, which is a tracking organization that tracks 98 metro areas in the US, announced that luxury home sales rose 9% from last year and are at the highest they have been in 4 years. Further, Zillow.com reported that the number of distressed properties on the market is down 33% from last year and 50% from 2010. Realtor.com also reported that the number of luxury homes is at a 12 month supply. All of these statistics may sound confusing grouped together, however these numbers are an excellent indicator of what the luxury marketplace has to offer in 2013.
First, the increase of the luxury market indicates that buyers are experiencing increased confidence in the market and are taking advantage of the low mortgage rates and prices that are still below the height of 2006. Second, with fewer distressed properties on the market, home owners are finding they are getting better prices for their homes, when priced competitively, and second that they may even be receiving more than their asking price due to the lack of inventory in the luxury market. In Miami, we are experiencing a dramatic lack of inventory and are at a 6 month supply in some areas. Further, we have sustained demand from international buyers who find Miami accessible to Latin America and we have a favorable exchange rate. This is incredible news to start off the year and we will report the latest findings as they are announced. Happy New Year!
