Million-dollar residences selling faster
By Laura Stace
The resale market of residential properties priced $1 million and over is steadily growing, with prices on the rise due to decreased inventory and an increase in buyers.
In the $1 million-and-up price range, 1,000 homes were for sale in July 2011 in Miami-Dade County while in September 2012 there were 900, said Christopher Zoller, Master Brokers Forum board member and EWM International broker associate.
Based on figures collated by the Miami Association of Realtors and the Multiple Listing Service, he said, the average sale rate has been 48 homes a month in this price range over the past 15 months.
Over the past 15 months, Mr. Zoller said, a home in this price range has remained on the market for an average of 162 days.
In the past quarter, he said, the average selling price per square foot has been $484.75.
Comparing the third quarter of 2011 to the third quarter of this year, Mr. Zoller cited an 8.2% decline in the number of $1 million-plus homes for sale while the number that sold increased 5.7%.
He said in this price range, on average homes were closing in the third quarter of this year for 87% of the asking price — up from 83% at the same time last year.
Homes under $1 million usually fetch 95% of the asking price, Mr. Zoller said.
Days on the market has also dropped 13.4% from the 2011 third quarter to the 2012 third quarter.
In the $1 million to $4 million price range, he said, 782 homes were on the market in the third quarter of last year compared to 678 in the third quarter of this year.
The number of houses for sale in this range has been steadily decreasing, Mr. Zoller said.
The number of days $1 million to $4 million homes on the market has also decreased from third quarter to third quarter by 15.8%, he said.
"It took 25 less days to sell a home in the $1 million to $4 million price range than it did the third quarter of 2011," he said.
The prices of homes in this range are also up 2%, he said, with the average asking price hovering around $2 million.
Regional Sales Manager Carlos Villanueva said the Keyes Co. gained traction in its luxury market since implementing a new business model in 2011.
Mr. Villanueva said South Florida's luxury market is increasingly affordable when compared to others in the US, and he predicted it would continue to grow due to asset allocation.
The average consumer's biggest asset is a home, he said, but the assets of the wealthy are in their private equity in their companies and stock portfolios.
Stock portfolios, mutual portfolios, private equity funds and exchange traded funds have rebounded and private equity in privately owned businesses has grown due to the rebounding economy and rightsizing, Mr. Villanueva said.
He said when the economy tanked the wealthy were affected, but not as badly because proportionately they didn't have as much tied into their home.
For the average consumer, he said, it was their entire nest egg.
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