Luxury home markets that continue to stay strong and see steady price gains are areas that have predominately not seen a large increase in new development over the past five years. Here is a quick glimpse of the top five luxury home markets based upon price gain from 2008 and published by Forbes.The top price gainers for the luxury market are: 1. Mendham, NJ +11.7% 2. Menlo Park, CA +11.6% 3. Los Angelas, CA (West Hollywood) +7.1% 4. Chappaqua, NY +6.5% 5. Los Angeles, CA (Hollywood Hills) + 5.1%
One important factor that is influencing price increases is the lack of distressed home sales in their specific luxury market. Three of the top areas on this list were in California’s Menlo Park, West Hollywood and Hollywood Hills areas. These luxury homes have primarily been unaffected by California’s wave of foreclosures. California is the number one state that has been hit hardest with distressed properties in the nation. Average home prices are down over 40% in California. However, the pockets of luxury home communities have remained strong.
Luxury homes in South Walton which include the areas of South Walton East and South Santa Rosa Beach encompass the beach communities of Seaside, Blue Mountain Beach, WaterSound, WaterColor, Rosemary Beach and Grayton Beach have declined close to 18% on a price per square foot basis.
Although the numbers in South Walton are down for luxury homes, we are seeing pockets of communities remaining strong including sales in WaterColor. As we continue to sell available inventory we are seeing prices stabalize and anticipate increased sales volume through the summer of 2009.
If you are considering buying or selling a luxury beach home, put the Team Baranowski advantage to work for you. If you have questions, our team is always available – 850.259.1788 or 850.259.4270.