Exodus to the South Brings New Life to Luxury Markets
June 18, 2018
As more home buyers relocate from the North to the South, two Florida counties now top the list of the nation’s fastest-growing luxury markets, according to realtor.com®’s May 2018 Luxury Home Index.
The top 5 percent of the priciest homes in Sarasota (North Port, Fla.) and Collier (East Naples, Fla.) counties rose 19 percent and 14 percent, respectively, in May. Broward County, where Fort Lauderdale, Fla., is located, ranked number 19 on the list, posting a 9 percent year-over-year growth.
“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,” says Javier Vivas, realtor.com®’s director of economic research. Markets in Northern California, Colorado, and Washington also are among the nation's fastest-growing luxury markets, posting double-digit yearly growth in the high-end sector, according to realtor.com®.
“Meanwhile, we are 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,” Vivas notes. Luxury prices in markets like New York, Boston, and Chicago have been showing signs of softening, according to realtor.com®’s analysis.
Updated: July 20, 2018