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Luxury On The Rebound
By Michael Saunders
It’s no coincidence that our region’s highest residential sale in two years occurred at the same time that the Dow was closing-in on an all-time high, restoring virtually all of the $16 trillion dollars in personal wealth that was wiped out during the Great Recession. Also restored is buyer confidence in the real estate market at precisely the moment when home prices have tilted upward after shedding as much as 50% of the artificially-induced appreciation that occurred during the boom years.
This confirmation that our market has bottomed is exactly what buyers were waiting for. Through mid-March of 2013, 41 properties over $1 million were sold in Sarasota and Manatee Counties—or just over four per week. I am especially pleased to report that agents from Michael Saunders & Company participated in 29 of these sales, or 70%. Moreover, the trend seems to be strengthening. During the same 10-week period, 91 properties over $1 million were placed under contract, with closings expected soon.
Though their fortunes were humbled by the recession, the wealthiest buyers have not lost their appetite for luxury. A new survey commissioned by our international brokerage partner, Luxury Portfolio International, recently probed how the changed psyche of the luxury buyer is influencing their buying behavior in our post-recession economy.
As their investment portfolios stabilized and the shock of their financial losses began to lessen, high-end buyers began to test the waters again, albeit with mindsets governed by fear; and where the best price on a property became more important than best quality.
Fast forward to 2013. Emboldened by their recovered wealth, these same buyers appear determined to demonstrate how adroitly they managed their personal balance sheets, paid down debt; and emerged from the recession in stronger financial positions than when they went in. As such they are no longer willing to compromise on quality or location and are purchasing some of the most luxurious, one-of-a-kind properties our market has to offer.
Take for example the magnificent Siesta Key property that our agents Marcia Salkin and Paulene Soublis listed and Pam Charron sold in late February for $10 million. Aptly dubbed “Snook Inn,” its new owners now inhabit a resort-like property that is so singular in quality, location and features that it is doubtful it could ever be duplicated at any price. Add to this the fact that the gated estate sits on nearly two acres, enjoys 500 feet of scenic frontage on Sarasota Bay and lives like an island within an island and you can understand why properties such as this are ripe for the picking. Luxury buyers are scouting for the most meaningful ways to both invest and enjoy their recovered wealth.
The same situation occurred just a week later when our top-selling team of Kim and Michael Ogilvy sold their Harbor Acres listing after only three months on the market. The iconic property closed for $7 million because its modernist design, spectacular bay front location and uncompromised workmanship proved irresistible for its new owners. Two days later the Dow roared to a record high. No doubt these buyers are congratulating themselves for their near-perfect timing of both the real estate and stock markets.
Two other MS&C listings—Little Bokeelia Island and Villa Solstice—have also created quite a buzz in the international media. Both have been featured prominently in the Wall Street Journal because they are exactly the sort of one-of-a-kind properties that today’s upper echelon buyers are determined to find.
Little Bokeelia Island is pure fantasy brought to life. Imagine your own private island just offshore Boca Grande, between Naples and Sarasota. In addition to its sublime ambiance, this magical property boasts the island’s original home, which has been exquisitely restored and includes every item on today’s must-have luxury checklist. Likewise, Villa Solstice is a study in over-the-top grandeur, sophistication and nuanced design. This landmark waterfront estate boasts every conceivable feature and amenity, including its prized location in the heart of Sarasota’s historic Museum Area neighborhood and cultural district.
The market for new construction is also making a comeback. Buyers now have the opportunity to purchase a residence within the first new luxury condominium to be built on Longboat Key in seven years. Our New Homes & Condominium Division recently unveiled Infinity, a Gulf front condominium midway up the key with just eleven units; and the response has been unbelievable. Clearly with inventories low, the economy on a faster track to recovery and luxury buyers feeling more confident about their finances than ever, the time is absolutely right for new luxury communities such as this.
The debut of developer Tom Mannausa’s The Jewel is a good case in point. Since formally announcing the new luxury tower on downtown Sarasota’s bay front, most of the available units are reserved, giving other developers the impetus to move forward with several new communities throughout Southwest Florida.
[1]Michael Saunders, Michael Saunders & Company (941) 953.7900 MichaelSaunders@MichaelSaunders.com [2]
Copyright © 2013 REAL Exclusive Magazine
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