Sarasota at Top of National Luxury Home Market
Times are good for those at the top: Twenty major U.S. counties saw double-digit price gains in June—many breaking records—according to the realtor.com® Luxury Home Index. And while one turbocharged market continued to dominate the top 20, its runner-up was quite a surprise.
Of course, what’s luxury in one area is commonplace in another. The index actually analyzes the entry-level luxury price tier, or the top 5% of all residential sales, in 90 counties. In 50 of those counties, the luxury tier starts at $1 million. Some markets have higher starting prices: San Francisco’s is a whopping $3.3 million.
“The strong stock market and economy gives luxury buyers additional cash,” says Danielle Hale, chief economist at realtor.com. “And real estate is a great way to spend that cash.”
Challenging the notion that what goes up must come down, the Sarasota County market in Florida continued to experience the fastest home-price growth, as it has since March. Prices increased 21% in June compared with the period one year earlier. Even with loftier prices, higher-end homes in Sarasota sell quickly. Half of all luxury homes in the area sold within 165 days in August, up 22% from the year before.