Home buyers who opted out of purchasing a home in some of the luxury real estate markets that became hot during the pandemic may have an opportunity on the horizon as this market begins to fall.
According to recent data by Realtor.com, median price points of luxury real estate are falling, indicating luxury markets are softening and becoming top destinations for affluent home buyers this fall. The data also points to a decline in demand with a shift in the median days luxury homes are on the market, as well as fewer page views.
Below is a list of U.S. cities where affluent home buyers could score big this fall.
Miami, Fort Lauderdale, and Pompano Beach, Florida
Generating attention for their fabulous amenities and popular sandy shores, this trio of South Florida cities saw their housing markets boom during the pandemic. However, buyers have largely backed off, making these locations the top destination for luxury home buyers this fall.
The housing markets in these cities have seen the luxury median listing price drop 22% to $2.5 million in the second quarter. Also, between June 2023 and June 2024, the average days on the market for luxury listings increased by five days, while page views of luxury properties on Realtor.com dropped a staggering 44%.
According to Mick Duchon, a Miami-based agent with Corcoran, some sellers are starting to change the high-price mindset of 2021 and part of 2022, creating an opportunity for individuals who have been patiently waiting on the sidelines.
Honolulu
Honolulu also experienced falling median luxury listing prices, which fell nearly 10% to $2.34 million in the second quarter. This past June also saw the median days on the market for these listings dropping 11 days compared to a year ago, as well as luxury page views declining 31%, which indicates less interest and making Honolulu the number 2 market this fall for home buyers.
“This is an island, and the city’s very limited, so we still have a limited supply,” Noel Shaw, an agent with Hawai’i Life Real Estate Brokers Forbes Global Properties, said. “So while there are going to be some great deals within the city, it’s not going to be as easy or obvious as other cities.”
With Honolulu, the famed second-home market for Asians, Shaw shared that luxury listings affluent buyers should keep an eye out for the top-tier properties of Japanese sellers, as the weakness in the yen right now means that some Japanese owners may opt to sell and convert their funds back to the yen.
Naples-Marco Island, Florida
The number three destination spot for wealthy buyers is also located in The Sunshine State. The booming market in Naples-Marco Island has quelled, with luxury median listing prices falling 18% to $4 million in the second quarter. While this city did not see a change in the median days on the market compared to last year, page views for luxury properties were down over 11%.
“We’re over the Covid mania, where people came and purchased properties at any price,” said Celine Wells, an agent with Douglas Elliman. “What we’re seeing now is less volume of sales, but very strong sales.”
For potential buyers, “patience is a virtue,” said Chris Wells, Celine’s business partner and husband, adding that “a nice deposit, a quick closing, a cash deal, a short due-diligence period—these are things that help a buyer get the property they desire.”
Santa Fe, New Mexico
Unlike other cities on this list, Santa Fe is still experiencing some demand, with luxury page views up nearly 7% and median days on the market dropping 33 days within the last year. However, housing prices are falling, as seen by the drop of nearly 14% to $2.98 million from April to June in luxury median listing prices.
“People are still wanting to come here. Santa Fe is still very, very desirable,” said Ricky Allen of Sotheby’s International Realty – Santa Fe Brokerage. “They’re coming for the size of the city, the climate, the culture, the lifestyle. … I think it’s a good time to be a buyer.”
