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Florida Housing Sets New Bar With $285M New Construction Listing

January 22, 2025 by Marco Santarelli

Florida Housing Sets New Bar With $285M New Construction Listing

The Florida housing market is undeniably hot right now, making headlines with a record-breaking $285 million new construction home hitting the market. But, is this ultra-luxury listing the whole story? Absolutely not! While the mega-mansions grab attention, the underlying trends and realities of the Florida real estate scene are far more complex and impact everyday buyers and sellers far more than these exceptional properties. Let's dive deep into what's really going on in the Sunshine State's real estate world.

Florida Housing Sets New Bar With $285M New Construction Listing

The $285 Million Marvel: More Than Just a Price Tag

Let’s address the elephant in the room – that mind-boggling $285 million new construction property in Manalapan. Yes, it's absolutely stunning, featuring a 54,570-square-foot main house, a beach house, guesthouse, and even a car “museum”. It's a development of a property that was initially purchased by former Manalapan mayor and developer Stewart Satter for $27.5 million.

According to Realtor.com, this ocean-to-lake estate is poised to shatter records as the most expensive new construction single-family home in the country. It’s designed by Choeff Levy Fischman Architecture + Design, built by Robert W. Burrage of RWB Construction Management, and designed by Marc-Michaels Interior Design. This place boasts a bowling alley, wine cellar, top-notch gym, spa, home theater, golf simulation room, padel court, and an indoor shooting range. That’s luxury on a scale most people can barely imagine!

The sheer audacity of this price tag and the over-the-top amenities do more than just shock us. It’s a symbol of the extreme wealth that’s being drawn to Florida. It's no secret that the state has become a haven for the ultra-rich, with low taxes, beautiful weather, and a lifestyle that screams opulence. Think of it this way; it’s a barometer, not necessarily a standard for the entire market.

The key things to note about this property are:

  • Location: Manalapan, in Palm Beach County, is becoming a hotspot for the very wealthy.
  • Scale: 54,570 square feet, roughly the size of the White House
  • Amenities: From a car museum to a bowling alley, it’s got almost everything.
  • Record-Setting: It's the most expensive new construction home on the market.
  • Completion: It's scheduled for completion in 2026 and will be fully furnished.

While it's fun to daydream about living in such a place, for the average buyer, this listing offers more of a glimpse into the high-end niche of the Florida market and less about the day-to-day realities of home buying and selling in Florida.

Beyond the Megamansions: What's Really Driving the Florida Housing Market?

So, let's move past the glitz and glamour and talk about the real driving forces behind the Florida housing market. It's not just about the ultra-rich purchasing waterfront estates. Several factors are at play:

  • Population Growth: Florida has seen a significant influx of new residents in recent years. People are drawn by the sunshine, the lack of state income tax, and the relatively lower cost of living compared to other major coastal states (at least, until recently). All this pushes up demand for housing.
  • Limited Inventory: The supply of homes has struggled to keep up with demand. This has created a seller's market, with homes often selling quickly and at prices above asking. The result is fierce competition.
  • Migration Trends: We're seeing people from all over the country, especially the northeast, move to Florida for retirement or a change of lifestyle. The pandemic also fueled this, as more people sought warmer weather and outdoor spaces.
  • Investment Opportunities: Florida remains a popular place for real estate investment due to tourism, long-term rental opportunities and the perception of the market being on the upswing.
  • Economic Factors: Florida's economy, particularly its tourism and hospitality sectors, contributes to overall job growth and encourages people to move to the state.
  • Interest Rates: Fluctuating interest rates definitely influence affordability and, subsequently, home sales activity. When rates are low, people are more eager to buy. As they go up, buyers get a bit more cautious.

Understanding the Different Markets Within Florida

It's crucial to realize that Florida isn't a monolith. The housing market varies significantly from city to city, even from neighborhood to neighborhood. What's happening in Miami isn't the same as what's going on in Orlando or Jacksonville. Here’s how we can categorize the different markets:

  • Luxury Hotspots (Miami, Palm Beach): Places like Miami and Palm Beach attract wealthy buyers from all over the world. Prices here are among the highest in the country. They are more likely to see the record-breaking deals.
  • Tourist-Driven Markets (Orlando, Tampa): Orlando and Tampa are popular tourist destinations, with a strong demand for vacation homes and rentals. They still have higher than average prices but, are more varied in their types of property on offer.
  • Growing Metropolitan Areas (Jacksonville, Tampa): These cities are experiencing significant population growth, and there's an increased demand for housing from both in-state and out-of-state residents.
  • Coastal Communities (Sarasota, Naples): These areas offer beach lifestyles, attracting retirees and those seeking a more laid-back atmosphere. However, they are still quite pricey.
  • Inland Regions: While less pricey than the coastal areas, cities further inland still see growth and demand for affordable homes. This is where first-time buyers may find more reasonable deals, though it's still a sellers' market, overall.

My Thoughts and Observations

Having watched Florida's real estate trends for a while now, I've noticed some key things. First off, the market’s resilience continues to amaze me. Even with rising interest rates and fluctuating national economic conditions, it seems to stay strong. It is also really important to note that the ultra-high-end market is almost a different animal altogether. The luxury market continues to have a strong demand from the global high-net-worth individuals, which seems unbothered by the average economic indicators.

I am seeing more and more people are looking for homes that have more flexibility, whether that be a need for home offices, larger outdoor spaces, and the possibility of rental income. People are thinking creatively about their living spaces, which is interesting to witness.

Also, affordability is a huge concern in many areas. It's getting harder for average families to find homes, especially those who are first time buyers. This problem needs to be addressed through a combination of policy and more housing developments, if the state's housing market is going to be sustainable.

I think it is very important to remember that the Florida real estate market is not just about the big numbers. It's about communities, families, and people's lives. So, while it is fun to read about the record-breaking listings, we cannot forget the people looking to purchase their first homes.

Navigating the Florida Housing Market: Tips for Buyers and Sellers

Whether you're looking to buy or sell, it's essential to be prepared. Here are some tips that I feel are crucial:

For Buyers:

  • Get Pre-Approved: Know your budget and get pre-approved for a mortgage before you start looking. This makes you a serious buyer in a competitive market.
  • Be Flexible: Be willing to compromise on some of your “must-haves”. In a seller's market, you might not find the perfect home right away.
  • Act Fast: Be ready to make an offer quickly when you find a property you like, especially in a high-demand area.
  • Consider Location Carefully: Research different neighborhoods. Think about what kind of community and amenities are important to you.
  • Work with a Local Realtor: A local real estate agent can offer expert advice and help you navigate the market in specific locations. They know the intricacies of individual communities in Florida.
  • Do your homework: Get property inspections done and understand all the costs involved in homeownership in Florida.

For Sellers:

  • Price Strategically: Price your home competitively and work with a realtor on the right valuation.
  • Showcase Your Home: Make sure your property is in its best condition. Consider staging for maximum appeal.
  • Be Patient: Even in a seller's market, it might take time to get the right offer.
  • Consider all offers carefully: Just because it's a hot market, doesn't mean you should accept any offer. Examine the terms.
  • Be ready for counter offers: Buyers may try to negotiate. Make sure you're willing to negotiate, too.
  • Know your local market: What's happening on a hyperlocal level may impact your sale.

The Future of the Florida Housing Market: What's Next?

Predicting the future is always tricky, but some trends are worth keeping an eye on:

  • Continued Population Growth: Expect the influx of new residents to continue, although maybe not at the same breakneck pace.
  • Potential for Moderation: While prices may not crash, we may see some moderation in the rate of increase. If interest rates go higher, demand may cool slightly.
  • Affordability Challenges: Affordability will continue to be a concern, with more people struggling to afford homes.
  • Increased Construction: There's a need for more new construction to meet the growing demand, especially in the affordable housing segment.
  • Climate Change Considerations: Rising sea levels and other climate change factors will influence long-term real estate decisions in Florida, especially in coastal areas.
  • Policy and regulations: The State, and the different local governments, will need to come up with policies to better address the housing issue. This may have an impact on the market.

In Conclusion

The Florida housing market is a dynamic and complex arena. While the $285 million listing might capture our attention, the reality is that the market is driven by many factors. It’s a complex interplay of population growth, limited supply, economic conditions, and unique regional trends. For anyone thinking of making a move in the Sunshine State, I can't stress enough how important it is to do your research, connect with a local expert, and be ready for a competitive market. And, while it’s great to dream big, keep your eye on what you need in a home and what’s feasible for your own individual circumstances. Happy house hunting!

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Filed Under: Housing Market, Real Estate Market Tagged With: Florida, Housing Market, luxury home, new construction

U.S. Housing Market Intelligence Report (April 2010)

April 20, 2010 by Marco Santarelli

Categories are graded from A thru F:

Economic Growth:  D+
Spending remains high and income improved, but the unemployment level remains very high. Overall economic growth improved slightly this month, and the results for our economic growth metrics were generally positive. The revised fourth quarter GDP growth rate increased to 5.6%. The pace of job losses eased this month, and the number of mass layoff events is plummeting, but employment has still declined 1.7% year over year.

The unemployment rate was flat this month at 9.7%, but the broader measure of unemployment, the U-6, increased to 16.9%. The length of unemployment in the labor force increased to 31.2 weeks this month, reaching a record high level since the BLS began tracking the statistic in 1948. Personal income improved and has returned to positive year-over-year growth for the second time since December 2008, increasing by 2.0%. The CPI (all items) increased to 2.3% from one year ago, while the Core CPI (minus food and energy) dropped to 1.1%.

Leading Indicators:  C+

Overall leading indicators held relatively steady this month, but several individual metrics actually improved. The Leading Economic Index has increased for the past eleven consecutive months. The ECRI Leading Index – an indicator of future U.S. growth – increased 13.9% year-over-year, and has experienced positive year-over-year growth for the past 10 months. Stocks improved once again in March, and all four major indices have now experienced large positive year-over-year growth, ranging from +43% to +57%.

[Read more…]

Filed Under: Economy, Housing Market, Real Estate Investing Tagged With: affordability, home sales, housing inventory, Housing Market, housing supply, new construction, real estate, Real Estate Investing, US economy

U.S. Housing Market Intelligence Report (March 2010)

March 15, 2010 by Marco Santarelli

Categories are graded from A thru F:

Economic Growth: D+
Overall economic growth was about the same this month compared to last, and the results for our economic growth metrics were mixed. The revised fourth quarter GDP growth rate increased to 5.9% from the preliminary estimate of 5.7%. Much of the growth was still the result of recent government stimulus and an increase in inventories. The pace of job losses also eased this month, although in the last 12 months the U.S. has lost 3.24 million jobs, which is equal to a decline of 2.5% of the total payroll workforce. The unemployment rate remained flat this month at 9.7%, while the broader measure of unemployment, the U-6, increased to 16.8%. The length of unemployment in the labor force declined slightly to just under 30 weeks this month, yet remains the second highest month on record since the BLS began tracking the statistic in 1948. Personal income improved in January and has returned to positive year-over-year growth for the first time since December 2008, increasing by 1.1%. The CPI (all items) decreased to 2.6% from one year ago, while the Core CPI (minus food and energy) also dropped to 1.6%.

Leading Indicators: C
Overall leading indicators held relatively steady this month, but several individual metrics actually improved. The Leading Economic Index 6-month growth rate declined in January to 9.8% from 12.2% last month, and remains very high compared to history. The ECRI Leading Index – an indicator of future U.S. growth – increased in January to its highest level since May 2008. The index increased 21.5% year-over-year, and has experienced positive year-over-year growth for the past 8 months. Stocks improved in February after declining in January, and all four major indices have now experienced large positive year-over-year growth, ranging from +46% to +62%. The S&P Homebuilding Index also improved this month. The spread between corporate bonds and the 10-year treasury fell in January, declining to 160 bps after peaking at nearly 270 bps in March. Since the 10-year treasury is seen as a risk-free investment, the spread between corporate bonds and the 10-year treasury displays the perceived risk of investing in corporate bonds, which has declined recently as Wall Street has become less worried about businesses failing. According to the 4th quarter CEO Confidence Index, CEOs are now much more confident about the economy. Despite the increase, the outlook index remains lower than earlier this decade. Business credit availability remains very poor, but deteriorated at a slower rate in the first quarter of 2010.

[Read more…]

Filed Under: Economy, Housing Market, Real Estate Investing Tagged With: affordability, home sales, housing inventory, Housing Market, housing supply, new construction, real estate, Real Estate Investing, US economy

U.S. Housing Market Intelligence Report (December 2009)

December 19, 2009 by Marco Santarelli

Categories are graded from A thru F:

Economic Growth: D
The economy remains weak and although some indicators have improved compared to last month, they are improving from very low numbers. The third quarter GDP growth rate was revised downward to +2.8% from the preliminary report of +3.5%. Despite the downward revision, it still marks a great improvement from the second-quarter, and is the first quarterly increase in four quarters.

Job losses have eased slightly compared to last month, yet remain awful compared to history. In the last 12 months the U.S. has lost nearly 4.7 million jobs, which is equal to a decline of 3.4% of the total payroll workforce – representing one of the largest declines in 60 years. The headline unemployment rate surprisingly declined this month, reaching 10.0% in November, down from 10.2% in October.

The U-6, a broader measure of unemployment that covers part-time workers who would like full-time work and those who have given up looking for work, also decreased to 17.2% in November, down from 17.5% in October. Mass layoff events – defined as a cut of 50 or more jobs from a single employer – eased once again in October to 2,127, and marks the first year-over-year decline since August 2007, representing a 3.5% drop compared to last year.

The length of time required to find employment continues to increase, with job seekers taking over twice the normal length of time to find employment. The November CPI (all items) rose to 1.8% from one year ago, while the Core CPI (minus food & energy) remained flat at 1.7%.

Leading Indicators: C-
The U.S. leading indicators took a leg down this month after a run of steady improvements in recent months. In October, the Leading Economic Index 6-month growth rate declined to 10.2%, yet remains one of the largest year-over-year growth rates on record since 1983. Although the ECRI Leading Index, which is a gauge of future economic growth, also declined to 23% since one year ago, it still represents one of the largest growth rates since ECRI began tracking the statistic in 1968.

Stocks continued to perform well throughout November. All four major indices we track have now posted positive year-over-year results, ranging from +17% to +40%, compared to one year ago. The S&P Homebuilding Index inched up in November and has shown a year-over-year improvement for the second time since April 2006. The spread between corporate bonds and the 10-year treasury increased slightly in November, reaching 177 bps. Since the 10-year treasury is seen as a risk free investment, the spread between corporate bonds and the 10-year treasury displays the perceived risk of investing in corporate bonds, which has declined recently as Wall Street has become less worried about businesses failing. CEOs are now much more confident about the economy, according to the CEO Confidence Index.

Affordability: C-
Affordability improved once again this month as home prices and mortgage rates continued to decline. Our housing-cost-to-income ratio has fallen to 26.1%, which is near the lowest level since data for the index began in 1981. Homeownership costs have fallen drastically in the past year, and now owning the median-priced home is just $54 more expensive than renting the average apartment – and in many parts of the country homeownership costs much less. Due to large job losses and government furloughs, household income has fallen 4% year-over-year to $53,293. Despite the decline in incomes, the median-home-price-to-income ratio remains below the historical average, currently at 3.2. The 30-year fixed mortgage rate continued to decline, reaching 4.78% by November month-end, while adjustable mortgage rates fell to 4.35%. The Fed’s overnight lending target rate remains at a range of 0.00% to 0.25%, which is the lowest level on record. The share of ARM applications declined to 4.8% in the last week of November which is a significantly smaller share than the peak level of 35% of total applications in early 2005.

Consumer Behavior: D-
In general, consumer behavior declined compared to last month. Consumer confidence experienced a negligible uptick compared to last month, reaching 49.5, and remains very low compared to history. Consumer sentiment declined in November to 67.4 and also remains well below the historical average. The Consumer Comfort Index increased slightly in November to a monthly average of -46.4. The personal savings rate fell to 4.4%, which is down from a recent peak in May of 6.9%. The U.S. net worth increased nearly $2.7 trillion dollars in the third quarter from the prior quarter. Despite the recent quarterly improvement, the decline year-over-year of $3.4 trillion remains one of the largest on record. The Misery Index – which is based on the unemployment rate and inflation – increased this month.

Existing Home Market: C-
The change from last month in the existing home market was mixed. According to the National Association of Realtors (NAR), seasonally adjusted annual resale activity continued to experience large gains in October, rising to 6.1 million home sales, and improving 10% from last month. The 12-month rolling count of resale sales activity has also improved for four consecutive months. Resale sales have experienced an increase due to the $8,000 federal tax credit that was set to expire November 30th, before it got extended to Spring 2010. The national median price of an existing single-family home fell to $173,100 in October from $175,900 in September, and has fallen 7% year-over-year. The pace of decline in the Case-Shiller national index, which tracks paired sales, improved drastically in the third quarter, and marks only the second time in over three years that the index decline eased. Although the Case-Shiller national index remains down nearly 9% year-over-year, it is a sharp improvement from 19% decline reported in the first quarter. The monthly 10-market and 20-market Case-Shiller indices also remain down year-over-year, yet have experienced month-over-month improvements since May, and the annual declines have eased in recent months. The number of unsold homes declined again in October, and fell to 7.0 months of supply, reaching very close to the historical average. In October, pending home sales volume improved again, increasing almost 32% year-over-year. As of the third quarter, 23% of all homes with a mortgage throughout the U.S. were worth less than the original value of the mortgage.

New Home Market: D
The new home market was mixed this month. Builder confidence declined in December as the Housing Market Index fell to 16. The seasonally adjusted new home sales volume increased in October compared to September, reaching 430,000 transactions – up 5.1% year-over-year. The median single-family new home price increased to $212,200 in October, but has declined 0.5% year-over-year. The inventory of unsold homes fell to 6.7 months, down from 7.4 months last month, and is a large improvement compared to 12.5 months of supply in the beginning of 2009.

Repairs and Remodeling: D-
The conditions for repairs and remodeling remain poor this month. Homeowner improvement activity worsened in the third quarter, representing a decline of 9.4% year-over-year. The Remodeling Market Index improved to 39.8 in the third quarter, and has rapidly rebounded after bottoming in the fourth quarter of 2008. Despite the recent increases, the index remains well below the historical average of 50. The decline in residential construction eased slightly in October, although it has fallen 24% year-over-year.

Housing Supply: F
Housing supply worsened this month. Total completions improved 9% compared to the prior month, reaching 810,000, although they have fallen 25% year-over-year. Seasonally adjusted new home starts increased this month, as single-family starts rose 2% and multifamily starts improved 67% compared to last month. Seasonally adjusted total permits also increased in November to 584,000 units. Total permit activity has fallen 7% year-over-year and over 74% since its most recent peak in September 2005. Although vacancy rates in the U.S. have improved in recent quarters, the majority of the U.S. remains oversupplied compared to history. Just four states in the U.S. are currently undersupplied – Texas, Louisiana, West Virginia and Iowa.

* US Building Market Intelligence™ report is produced by John Burns Real Estate Consulting.

Filed Under: Economy, Housing Market, Real Estate Investing Tagged With: affordability, home sales, housing inventory, Housing Market, housing supply, new construction, real estate, Real Estate Investing, US economy

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