Sales of Tampa Luxury Homes Pushed Up by Improving Conditions

Published by nora | Filed under Communities, Market Trends, Miscellaneous, Pinellas County Homes, Real Estate

Sales of Tampa luxury homes have been improving since October as prices become more appealing to buyers. In October, a total of 192 million-dollar homes in the Tampa Bay area were sold, based on data from the Pinellas Realtor Organization. The number represented a 22-percent increase from the 157 units sold in October last year.

One of the key factors for the increased sales has been the improving economic situation in the Bay Area. In a study of 150 representative cities worldwide, Brookings Institute cited the city of Tampa as among those weathering the recession and recovering from the doldrums. As other cities still struggle from lack of growth, Tampa posted an income growth rate of 2.5 percent. Another popular Florida city, Miami, posted a growth rate of 1.6 percent.

The still low mortgage rates and the high inventory of million-dollar homes which have cut their prices are also big factors in the increased sales. The upticks in the stock market and in businesses are also helpful in inspiring confidence in buyers.

Among recent million-dollar sales in the area were a South Tampa Canal home sold for nearly $2 million, another home sold for $2.4 million, and a Mediterranean canal home sold for $1.7 million. A Culbreath Isles canal home was sold for $1.5 million and a Beach Park home was sold for $1.48 million. Other high-end homes sold ranged from $700,000 to $900,000.

Prospective buyers of high-end homes have plenty of choices in Tampa. A real estate research firm in the area contends that the recession created an abundant supply of luxury homes in Tampa, increasing the supply from the usual 17-month-supply to a 50-month supply. This is good news for buyers, as they now have a lot of choices and they are more likely to have their discounted offers accepted.

Recently, ten properties in Snell Isle were sold at an average of $1.6 million, certainly below their listing prices. A waterfront five-bedroom home was sold in October for $1.6 million, with the seller giving nearly 29 percent of discount to the buyer. Discount rates, however, are not likely to step up, as the market has started stabilizing and Tampa has been surpassing other Florida cities in recovering.

Prospective buyers can take a look at these Tampa luxury homes in communities near gorgeous beaches and high-end golf facilities and yacht clubs:

Beachfront Homes / Townhomes / Condos
Million-Dollar Homes
Luxury Communities: Gated / Mediterranean / Boating / Golf / Yacht Clubs