Interest from prospective home buyers in Northern states have propelled two Florida counties – Sarasota and Collier – to the top of the nation’s fastest-growing luxury housing markets, according to the May 2018 Luxury Home Index from realtor.com.
In May, the top 5 percent most expensive home prices in Sarasota (North Port) and Collier (East Naples) counties grew 19 and 14 percent, respectively.
Additionally, Broward County, Fla. – home to Fort Lauderdale and ranked No. 19 on the list – grew 9 percent year-over-year. Much of this growth is attributed to increased interest from buyers located in New York, Boston and Chicago – markets where, in many cases, luxury prices have stalled, according to realtor.com search data.
“Luxury prices in the Sunshine State are rising quickly as buyers from places like New York, Boston, and Chicago get wind that there is a better bang for their buck available down South,” said Javier Vivas, director of economic research for realtor.com. “Meanwhile, we’re seeing signs of a luxury market glut in many established markets, which is in some cases leading to spillover demand for their less pricey neighbors.”
May 2018 top 10 fastest growing luxury markets
Market (local county seat) – Top 5% luxury price – % Change year-over-year
Sarasota County (Sarasota) – $ 993,000 – 19.1%
Queens County (Queens, N.Y.) – $ 1,240,000 – 15.1%
Collier, County (East Naples) – $ 1,651,000 – 13.7%
Douglas County (Castle Rock, Colo.) – $ 919,000 – 13.1%
San Mateo County (Redwood City, Calif.) – $ 3,496,000 – 13.0%
King County (Seattle) – $ 1,486,000 – 12.8%
Marin County (San Rafael, Calif.) – $ 3,220,000 – 12.5%
Snohomish County (Everett, Wash.) – $ 790,000 – 12.4%
Hudson County (Jersey City, N.J.) – $ 1,306,000 – 12.1%
Santa Clara County (San Jose, Calif.) – $ 2,744,000 – 11.9%
While buyers in New York, Boston and Chicago may be driving growth in places like Florida, luxury prices within those markets themselves have stalled. In Boston’s Suffolk County, Chicago’s Cook County, and New York’s Manhattan and Suffolk counties, for instance, over the past year luxury home prices decreased 2.7, 2.2, and 2.1 and 1.3 percent, respectively.
In New York, in particular, demand for luxury homes in Manhattan and Brooklyn have stalled at $4.6 and $2.2 million, respectively.
© 2018 Florida Realtors®