Florida has taken the lead in terms of growth in the luxury market in June. According to a new report by Realtor.com, three Florida towns saw high-end home prices grow at or near double digits compared to last June. The entry-level luxury home price in Sarasota, Collier, and Broward grew 19, 14, and 9 percent year-over-year respectively.
Florida markets are especially attractive to buyers from Chicago, Boston, the Hamptons, and parts of New York City, the report stated. The “upward pressure on luxury prices in certain parts of Florida” started last November and is hitting double-digit growth this spring.
The Sunshine State also owned two of the five fastest-growing luxury markets this month, Sarasota and Collier. The other three were Queens, New York.; Douglas, Colorado; and San Mateo, California. These areas saw prices growing at 13 to 19 percent year-over-year.
In NYC in particular, the report stated, market demand data shows demand for high-end homes in Manhattan and Brooklyn—where prices have stalled at 4.6 and 2.2 million, respectively—also appears to be spreading rapidly into lower-priced adjacent markets in Queens and Hudson County. New Jersey prices have also grown by 15 and 12 percent, respectively, to 1.2 and 1.3 million year-over-year.
Despite the upstart that is Florida, the top 20 high-end housing markets are still dominated by counties in the West. Three California Bay Area counties—San Mateo, Marin, and Santa Clara are still among the five most expensive luxury markets in the country, with entry points between $2.7 and $3.5 million. These three markets are also among 10 fastest growing ones, with prices continuing to accelerate by 12 to 13 percent annually.
The same rates of growth are happening in the Seattle area. Meanwhile, primary and secondary luxury markets in Colorado are also growing faster than the rest of the country. Entry-level prices in Douglas, Jefferson, Denver, and Boulder counties all posted double-digit yearly growth, according to the report.
On the opposite side, northern markets driving inbound interest into Florida markets in particular show declines or deceleration in luxury prices, Realtor.com reported. In the counties that are home to Boston, Chicago, the Hamptons, and Manhattan saw luxury prices drop 2.7, 2.2, 2.1 and 1.3 percent year-over-year respectively. Meanwhile, in Middlesex, Massachusetts; and Kings, New York, saw drops of 1.4 and 2.4 percent month-over-month respectively.