Steve Eckhardt's Tampa Area Blog

Sales of million dollar homes took a dive in 2008 for both the Greater Tampa Bay area and the Greater Sarasota/Bradenton areas.  The scarcity of jumbo loans, falling investment portfolios, and economic pessimism all contributed to the slow sales in the luxury home market.

The following statistics are taken from the Mid Florida Regional MLS and cover single family homes over $950,000.  The Greater Tampa Bay area statistics cover Hillsborough, Pinellas, and Pasco counties.  The Greater Sarasota/Bradenton statistics cover Sarasota and Manatee counties.

Greater Tampa Bay Area

492 homes over $950,000 sold in 2008 vs. 601 homes in 2007.  The drop of 109 homes represents an 18.13% decrease in sales of million dollar homes.  The average list price in 2008 was $1,720,163 and the average sales price was $1,339,315.  A discount of 22% off the average asking price.  The average size of the luxury homes sold in Greater Tampa Bay was 4089 square feet with a average price of $327.54 a square foot.  There are currently 1446 homes over $950,000 available for sale in the Greater Tampa Bay area.  30% of the luxury buyers in 2008 paid cash.

Greater Sarasota Bradenton

537 homes over $950,000 sold in 2008 vs. 733 homes in 2007.  The drop of 196 homes represents a 26.7% decrease in sales of million dollar homes.  The average list price in 2008 was $1,920,218 and the average sales price was $1,633,010.  A discount of 14.9% off the average asking price.  The average size of the luxury homes sold in Greater Sarasota/Bradenton was 3545 square feet with a average price of $460.65 a square foot.  There are currently 1561 homes over $950,000 available for sale in the Greater Sarasota/Bradenton area.  55% of the luxury buyers in 2008 paid cash.

As you can see from the above statistics, the Greater Sarasota/Bradenton area had a much larger percentage of cash buyers.  And while they had a larger percentage drop in the number of homes sold, they were able to command 40% more per square foot and keep the sales price to listing price discount at 14.9% vs. 22% in the Greater Tampa Bay area.

Nationally, the number of luxury homes on the market increased in the month of January after 5 straight months of falling inventory. The statistics are compiled by the Institute For Luxury Home Marketing and Altos Research.  (The chart covers homes on the market for at least $500,000 in the top 10 zip codes for 31 major metro markets around the county.)  I expect this trend to last through the Easter holiday and then start a gradual decrease through July.

If you are considering the purchase of a luxury home on the Gulf Coast of Florida, please call or e-mail.  Steve Eckhardt, Broker, (813) 765-1182 or steve@TheFloridaAuthority.com