Residential real estate demand booms in Florida's luxury market

Residential real estate demand booms in Florida's luxury market

Florida appears to be a magnet for those who enjoy high-end homes these days. Recent data shows that the state’s residential real estate market is making a huge turnaround. In fact, the quantity of houses purchased for a million dollars or more during the first three months of 2014 was higher than the number purchased during the same period last year in the Palm Beach area.

The increase was 16 percent; this was the second consecutive year for an increase of this nature to take place. Nearly 250 houses sold for at least a million dollars earlier this year, with the priciest sale involving an oceanfront home worth $30 million. This palace featured seven bedrooms, three half-bathrooms and 11 bathrooms.

The housing recovery in Florida overall appears to be strong, and the same factors driving this recovery are also driving mansion sales in the state. Factors such as lacking inventory, low rates for mortgages and new confidence with regard to pricing are motivating wealthy homebuyers to get into the real estate market. In addition, the home values in South Florida are low when one compares them with those of other markets throughout the world.

Recent gains in the stock market are also pushing buyers to look at homes again. Now is an ideal time for buyers to pursue homes in Florida because many are still getting solid deals on them. Understanding laws regarding residential real estate may help people on both ends of the transaction to successfully complete the deal by achieving their own goals while trying to keep the other party satisfied as well.

Source: Sun Sentinel, "Luxury home sales in Palm Beach County on a tear", Paul Owers, June 14, 2014