Homes & Estates Florida Collection May 2016 | Page 8
LUXURY MARKET REPORT 2016 EDITION 1
PREVIEWS® LUXURY MARKET REPORT EXCLUSIVE:
MARKETS TO WATCH
These markets fell outside of the top 20,
but are on the rise.
$5M+ SOLD LISTINGS
City, State
# Sales
ALP/ASP
Boston, MA
22
94
Redwood City, CA
17
102
Dallas, TX
17
94
$10M+ SOLD LISTINGS
City, State
# Sales
ALP/ASP
Hobe Sound, FL
5
92
Boston, MA
5
92
Dana Point, CA
4
94
NEW THIS REPORT
AVERAGE-LIST-PRICE TO
AVERAGE-SALES-PRICE RATIO
The list-to-sales price ratio (ALP/ASP) is a
simple concept. The closer sellers get to their
asking price, the more this generally indicates
a high-demand market and opportunity for
sellers, while a lower ratio may indicate greater
opportunity for buyers.
Top 20 U.S. Cities for Luxury
Home Listings and Sales
W
ill unsettling global market conditions
have a sobering effect on U.S. luxury
real estate? This is a question on the
minds of many industry insiders in 2016. The
data point to a trajectory that will continue to
unfold this year.
The latest results released by the Coldwell
Banker Previews International® program and
Real Data Strategies, Inc. show signs of change
originating from highly heated markets like Miami
and San Francisco and emerging cities like
Austin. Speaking of hot, we’ve added a new
component to our data to drill more deeply into
identifying cities that may be a hot seller’s or
buyer’s market. The list-to-sales price ratio (ALP/
ASP) is a simple concept. The closer sellers get
to their asking price, the more this indicates
a high-demand market and opportunity for
sellers, while a lower ratio may indicate greater
opportunity for buyers.
For instance, coastal destinations like Miami,
Delray Beach, Florida and Newport Coast saw
the most growth at the ultra-high-end. Santa
Barbara experienced a substantial jump in $10
million+ sales with an ALP/ASP ratio of 85%,
signaling that marketplace’s return to healthy
levels of demand. Newcomers to the list for
$10 million+ sales — including Newport Coast,
La Jolla, Delray Beach and Lake Worth, Florida
— also point to high demand along the coasts,
with ALP/ASP ratios of 83% to 90%. In contrast,
affluent bedroom community Greenwich
recorded less than half of its $10 million+ sales
from 2014, dropping off the list for the first time
as it faces a high supply of single-family luxury
homes. Still, it scored a high ASP/ALP rating
of 92%, indicating that the market is holding
steady to value, even if it means a longer time
on market. According to Pat Veling, president of
Real Data Strategies Inc., “Ultra-luxury lifestyle
properties continued their brisk sales pace last
year when compared to 2014. Nationwide,
nearly 400 homes valued at $10 million or more
were sold in 2015.”
The number of sales in the $1 million+ category
held mostly steady in 2015. No surprise — New
York reclaimed the top spot in this price range.
California held its position as a national luxury
epicenter, with Los Angeles, San Francisco,
San Jose and San Diego taking the next four
positions. Outside of New York, tech meccas
Austin and Seattle saw the largest annual sales
gains — up 24% and 23% respectively from
2015. Tech centers like San Francisco, San Jose
and Seattle also scored the highest ASP/ALP
ratings, suggesting sellers still have the upper
hand in ѡ