Million dollar-plus market shows signs of life

COURTESY PHOTO The first quarter 2009 saw a significant increase in pending sales of homes priced above $1 million in Southwest Florida. There is a renewed interest among buyers in the luxury home market as sales of properties priced above $1 million become more prevalent, according to John R. Wood Realtors.

After seeing sales in this sector considerably drop off late last year, the Wood Company reported increased activity in 2009, with 74 sales so far this year. While the majority of the sales are between $1 million and $4 million, two were well above $10 million, and several are in the $5 million to $10 million dollar range.

There is no denying that strong buyer activity exists throughout the low end of the real estate market, but with bargains to be found all along Southwest Florida's coast, the luxury home segment in Naples, Bonita Springs and Estero is coming back to life.

Sunshine MLS shows homes priced at $1 million and up drawing little activity during the third and fourth quarters of 2008, reporting less than 120 pending sales during each quarter. However, first quarter 2009 saw a significant increase in pendings within this sector with Sunshine MLS reporting 184 units became pending sales. When compared with the same time last year, pendings still fall short of the 250 total of first quarter 2008, but the increase is promising, in part because a good portion of the sales occurred after the traditional end of the season.

Neighborhoods to note include the affluent area of Port Royal, Naples which has suddenly sparked motivation among buyers as 10 pending sales were reported during April 2009 alone. This even surpasses the number of pendings back in April 2005, when the market was considerably stronger.

Even Bay Colony, a million-dollarplus market that has been reporting one pending sale monthly since mid-2005, recently shows two and sometimes three pendings per month.

Regardless of price, it is important to note that residential pending sales are at their highest levels in four years. In April 2009, 1,441 units went pending, a significant increase over the same time last year which had 929. In fact, since November 2008, pendings have constantly increased every month.