Possible upturn in Luxury Real Estate Market

Pennsylvania-based home builder, Toll Brothers, agrees the real estate market is still soft in many areas, but seems to have bottomed out in other areas.

Quote:

  • “In the Naples-Fort Myers market, sales activity is definitely up for new homes on the market at reduced prices. That’s a definite contrast to late 2007, when you couldn’t give away a home regardless of price.”
  • In the Orlando market, it takes a real bargain to interest buyers, he says. Many buyers are walking away from deposits — a trend that’s prompted the company to require additional funds as its new homes move toward completion.
  • The luxury Jacksonville market “is in the doldrums in a serious way,” largely because it’s a primary home market where potential buyers are sitting back until the national economy perks up.
  • While the demographics are different in Palm Beach County and the Treasure Coast — far more snowbirds and preretirees — the sales pace is also slow. One reason, Toll says, is that buyers are having a hard time selling their current properties to move up to a luxury home in Florida.

He finished off the article saying: “You move from an expansion mode to protecting your balance sheet immediately. . .  Then you hunker down, build up your cash, wait for the blood in the streets and take advantage of the opportunities.”

Well put.  If you are not buying now, or preparing to buy in the next 12 months, you’ll wish you had in a few years.

Full article.

4 thoughts on “Possible upturn in Luxury Real Estate Market

  1. With the prices down and the dollar low, I would think that there would be a lot of foreign real estate investment interest in South Florida.

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  2. Ann, I don’t think we will see any huge price drops in the next 12 months as our market begins to stabilize. I really think at this point, the deciding factor for you and other buyers should be how much in the rental season you have left from when you decide to close. If you are ready to mobilize quickly, I would say now could be a great time to buy, with the summer rental season ahead of you. If you don’t think you could mobilize until mid-summer, I would wait until early spring 2009. I don’t think we’ll see much price/market change between now and then.

    I have no crystal ball, so don’t hold my feet to the fire here. I am just speculating.

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