February 18, 2013
A few years ago most luxury home sellers knew they weren’t going to get the asking price of their home. Today, it’s a very different story. On a national scale, the average home sold for 98.3 percent of the asking price this December, according to the Palm Beach Post.
There are a couple of reasons for these changes. The influx of foreign buyers into the luxury oceanfront home market from Miami Beach to Palm Beach, and the increase of luxury waterfront sales have decreased the level of inventory so much that it has become a seller’s market. Another reason luxury home sales and sale prices have increased is the historically low interest rates.
This is good news for luxury home sellers and buyers. Purchasing a vacation home is still an investment and it’s comforting to know that the value of your second or third home will go up over time.
Of course it’s important to make sure you’re asking price correlates with the market. The best way to determine this is by finding out the sale prices of the luxury homes in your building or neighborhood that have already sold. This also makes sense for the buyer. It doesn’t make sense to hold on to an asking price that is unrealistic, even in this market.
Source: The Palm Beach Post
