For the sake of this blog post I will consider luxury properties as those listed for sale over $1,000,000, though I know an argument could be made that the high-end range starts at a lower price. Also, I compiled the numbers for this post using sales data from our main marketing areas, which are the Gulf beaches from Clearwater south to St Pete Beach (including Isla Del Sol / Bayway Isles, and Tierra Verde), and Tampa Bay from Shores Acres to downtown St Petersburg.
Here’s a quick breakdown of the current status of homes and condos listed over $1,000,000:
| Status | Homes | Condos | Total | Avg. SQ/FT | Avg. List | Avg. DOM |
| Active | 213 | 88 | 301 | 3,942 | $2,044,825 | 225 |
| Active w/Contract | 11 | 2 | 13 | 4,250 | $1,825,538 | 230 |
| Pending | 7 | 4 | 12 | 3,684 | $1,753,491 | 97 |
| Sold since Jan. 1 | 31 | 43 | 74 | 3,793 | $1,620,364 | 146 |
The average sales price for Sold properties listed over $1,000,000 since January 1 is $1,390,354, with a list price/sale price ratio of .87 (87%). The average sales price per sq/ft is $369.
In the past 30 days 9 single family homes and 8 condos have sold, giving us an inventory level (absorption rate) of almost 18 months (301 on market / 17 properties per month).
We have seen a recent bump in contracts on some properties that have been on the market a long time, most likely this is due to significant price drops and buyers realizing we are close to the bottom of the market.
With inventory this high sellers need to price aggressively and agents need to be on top of their marketing game, with professional quality photos, video and marketing materials to help get the relatively few buyers that are out there into the property. And I cannot stress the importance of making the property easy to show: no buyer-agent wants the listing agent present during a showing - they only get in the way. And I know for a fact that many agents will not show a property that has a “listing agent must be present” requirement unless a client specifically asks to see it.
Buyers, clearly you are holding all the cards in the high-end market. Many sellers are distressed, even in the high-end, and prices are low to the point of undervaluation. That being said, many sellers are still unrealistic (most people think their homes are worth more than they really are, most especially high-end sellers), so your agent needs to research comparable sales thoroughly and provide you with all the data necessary to make an educated offer.
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