The real estate market across the United States is depressed due to high interest rates and slumping home prices. But in the Tampa Bay area, wealthy buyers are still snapping up luxury homes all over the place.
The most expensive homes sold for more than the overall market, according to September data released by Greater Tampa Realtors.
Single-family home sales in the Tampa metropolitan area were up 8.3% compared to this time last year across all price ranges. Condominium sales increased by 23.7%.
However, sales of single-family homes priced at $1 million or more increased by 61.8%, and sales of condominiums in that range increased by 300%.
David Moyer, sales manager at Smith & Associates Real Estate in Tampa, said many wealthy buyers can pay cash or obtain financing through other channels. This means they are unfazed by rising mortgage rates, which have risen to 8% in recent months.
CR Hero, CEO of luxury home builder AR Homes, said some people are investing in real estate due to poor performance in the stock market.
“It’s hard to make cash right now,” he says. “A dream home can be easily achieved.”
The Tampa Bay area has long been a popular destination for vacation homes. Still, wealthy buyers have historically favored Sarasota and Naples as winter vacation destinations, Moyer said.
The shift to remote work during the pandemic has attracted many new buyers, including high-income earners, to Tampa Bay.
“We don’t have the traffic of Miami yet, but we do have a great airport and waterfront lifestyle,” Moyer said. “We are considered one of the top markets in the country.”
Bowen Arnold, president of DDA Development in Tampa, said demand for luxury goods has increased tremendously in recent years, and builders are scrambling to keep up.
“Prices are not going down and inventory is limited,” Arnold said.
400 Central, slated to be the tallest building on the Gulf Coast, has generated $250 million in sales over the past two years and is adding new units. sStarting at $1 million. Pendley is a luxury building in Tampa, where home prices start at her $1.5 million, but during the same period she recorded sales of $230 million.
Since the end of 2021, 25 out of 31 units have been sold at the condominium “The Nolen”, which DDA is currently building in St. Petersburg, with a total sales value of $63 million.
“It’s just the perfect building in the perfect location,” said Peter Kageyama, who is buying an apartment in The Nolen with his wife, Lisa Wannemacher.
When the couple married last fall, they wanted a fresh start in a new location. However, they knew it would be difficult to match the quality of life Vannemacher was accustomed to. His 16th-floor unit at Bliss Condominiums on Beach Drive offers sweeping waterfront views and easy access to downtown St. Petersburg.
“When we found out we could move up to The Nolen and get a larger unit, it ticked all the boxes,” she said.
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It didn’t matter that the building was on the same block as Vannemacher’s current location. Also like Bliss, each floor will have no more than two units, each with its own elevator.
For buyers like them, Herro said the priority is not closing the deal, but rather finding a home that will enhance their lifestyle.
As the Tampa Bay market has grown in popularity, the biggest challenge for luxury builders has been finding available land near the water or in high-end residential areas where high-income earners want to live.
In the future, Herro predicts more older homes and condominiums will be demolished to make way for state-of-the-art buildings with all the amenities luxury buyers expect.
“Tampa Bay’s secrets are out and prices will continue to rise,” he said.