LUXURY HOMES STRUGGLING IN FLORIDA

Luxury homes struggling in Florida is the truth heading late summer going into last quarter of 2024. Reports show the average luxury home sold between April and June 2024 ranged averaged from 1.5 to 1.9 mil up 9% from this time last year in many areas. Click link to learn more https://www.newsweek.com/florida-luxury-homes-struggling-find-buyers-1930785

I was actually sitting in on an open house for a 2.5mil and now down to 2.0mil and seller currently took home off the market for a bit to regroup. Interest rates has also taken a toll on jumbo loans as well. With economic uncertainty and changing of buyer preferences with the current new law in place. Additionally, the increasing inventory of luxury homes can lead to price adjustments as sellers become more competitive. Some areas might see a slowdown and these types and prices can easily be lowered to sell. It may cost even more to maintain and hold onto. 

ECONOMIC FACTORS

Economic factors play a significant role in shaping the housing market across the country. Higher interest rates generally lead to increased mortgage costs, affordability which is discouraging all buyers and slowing down home sales. Employment rates with strong job growth see higher demand for housing as more people relocate for new jobs. With income levels, higher average income levels can boost demand for housing, particularly in the in the luxury housing market. Along with economic growth tend to attract more residents and investment, which drives up housing demand and prices. Rising inflation can impact affordability as cost of goods and services rise with housing prices. 

With inflation and high cost of living can erode purchasing power and deter buyers leading to slower market activity. High consumer confidence typically leads to increased spending, including home purchases. Conversely, economic uncertainty can lead to people holding off on buying homes. When confidence is low, potential sellers may choose to stay put rather than enter a volatile market, affecting inventory levels. 

DEMOGRAPHICS

Demographics play a vital part in an aging population may see increased demand for retirement communities and smaller homes, while younger populations might drive demand for urban living and starter homes. Tax policies play a different role in locations many can be favorable like no State income tax which can attract high-income individuals and businesses which can boost local housing markets. Demographics play another crucial part in shaping the housing market and influencing home-buying decisions. Here are some key thing  to keep in mind when looking to purchase a home. Age of of buyers consider to live in areas relative to their ages. Move up buyers in their 30's to 50's may look for larger homes or those in family-friendly neighborhoods as they start families or seek more space.

Multi-generational living has increased since the post pandemic with the inflation to accommodate families include taking care or parents and in-laws with separate living spaces. This also help with grandkids. Click on link to learn more about multi-generational living /MULTIGENERATIONAL-HOMES---32819---32836---Dr--Phillips-6-24948.html

As for retirees, older adults may tend to downsize or seek homes in 55+ communities often prioritizing accessibility and low maintenance. Click link to learn more about downsizing to smaller home /DOWNSIZING-TO-SMALLER-HOME---32819---32836---Dr--Phillips-6-18381.html

I currently showing a 2.5mil home now down to 2mil inCentral Florida Lake Nona area. For more information in the Dr. Phillips Central Florida local area call Kevin Strawter today to have him find you that best priced luxury home in this current housing market August 2024.