Florida Real Estate News –
Some luxury sellers slash millions off asking prices
NEW YORK – As the luxury housing market softens, home sellers across the nation are offering discounts on upscale dwellings. The luxury home market in cities like New York and Miami are experiencing a full-on slowdown, while in other regions there are concerns about a possible supply glut on the horizon.
“Buyers are very price sensitive,” says Manhattan real estate agent Donna Olshan. “If it’s not priced right, it’s going to sit until the cows come home.”
In Miami Beach, an eight-bedroom, eight-bathroom home listed a year ago for $11.95 million was recently reduced by $1 million.
Global events have put a damper on sales, says Craig Studnicky of the Miami brokerage ISG. “If you had told me that Great Britain would vote yes on Brexit and Donald Trump would be our next president a year ago, I would have thought you were out of your mind.”
In addition, overseas buyers who accounted for a big part of Miami’s high-end condo market have been turned away by the strength of the U.S. dollar. The 190-unit Echo Aventura in Miami is discounting the $2.5 million to $3.3 million units by upwards of 15 to 20 percent, which Studnicky says makes it “a great opportunity to buy that condo on the water you always wanted at a ridiculous deal.”
Sellers need to adjust their expectations, say agents. Realtor.com indicates that the national median asking price for homes in the top 5 percent of listings rose 18 percent to $1.2 million in the third quarter of 2016 from the same period in 2015, but actual sale prices climbed just 3 percent over the same period.
Furthermore, luxury listings took a median of 131 days to sell, which was 4 percent slower than the prior year.