Presenting

SaundersBEST | MARKET REPORT early anywhere we go, the first question our agents are usually asked is "how is the market?" Most of the time we can take a look at the statistics to answer that question fairly easily, but the end of 2016 had us scratching our heads wondering: where are all the luxury buyers and why the slowdown? The answer appears to fall to the political and economic uncertainty that became the theme of 2016. Our market reflected the global trend in which real estate investments were relatively sluggish when compared with the previous year. However, a stock market rally in late 2016 suggested that investors were expecting a strong year for corporate America in 2017. If lower corporate taxes, deregulation and infrastructure investment by the U.S. government are all on the table as expected, then real estate will also benefit. Fresh off the heels of the 2017 Leading Real Estate Companies of the World ® annual conference, Michael Saunders & Company agents brought back a global perspective on the real estate market thanks to Marci Rossell, the new Chief Economist for our network. Speaking about the broader trends affecting the real estate industry, Rossell said "The Great Recession is long in the rear view mirror. With confidence in the economy comes security around income and asset values. So, the affluent buyer will continue to see real estate as a prudent, essential component in their investment portfolio. And despite the fact that interest rates are rising in the U.S., I expect 2017 to be a strong year of global luxury real estate." In Sarasota, Manatee and Charlotte Counties, 2017 is off to a remarkable start. In the luxury space, Michael Saunders & Company represented two record-breaking sales and listed the highest priced property ever in the tri-county area. At $26.5 million, "Serenissima" has a price tag more commonly seen in Naples or Palm Beach, where currently more than 30 properties at $20 million or above are on the market. Speaking about the new listing, Michael Saunders said "I built this business over 40 years to be ready to bring a property like this to market." In January 2017, Michael Saunders & Company agents successfully sold the highest priced condominium on Longboat Key since 2013 for $5.25 million. The "Boheme" penthouse at Aria sold in just 27 days and represents the first resale of a new development THROUGH THE LUXURY LENS: Locally and Globally N Understanding the latest local trends in pricing and sales is your key to success in today's market. condominium in all of Sarasota for half-a-decade. With this sale as evidence, the luxury buyer that sat on the sidelines for the majority of 2016—waiting to see how the year would play out—is now coming forward and making offers. Just a month later in February 2017, Michael Saunders & Company closed the highest priced sale ever in The Lake Club community of Lakewood Ranch. With a sale price of $4.6 million, the Italian-inspired villa—which graced the front cover of SaundersBEST in the Fall—has set a high bar for real estate in east county. Michael Saunders said the sale "indicates growing strength in the East County luxury market and the desire of buyers for the best in quality and distinctive design." A look at the luxury numbers so far this year seems to support the idea of a re-energized market. According to Trendgraphix, in January 2017 there were 33 sales of single family homes priced above $1 million, up 13% from January 2016. For single family homes priced above $3 million, there were 3 sales in January. On the condominium side, there were 22 sales of properties priced above $1 million, up by 27% since January 2016. In the $3 million+ price range, there were four condominium sales in January 2017 as opposed to just one in 2016. Most of these sales saw a price adjustment prior to a successful sale. Year-to-date, Michael Saunders & Company agents have sold 78 properties above $1 million, representing a 46% share of the market by sales volume. In the $3 million and above category, Michael Saunders & Company agents have sold 11 properties, with a remarkable 45% market share by dollar volume sold. Quite simply, we are the name to know and trust in luxury real estate in Sarasota, Manatee and Charlotte Counties. The significant sale and listing activity certainly indicates the demand for distinctive properties in our region. However, the importance of pricing a home correctly from the start cannot be emphasized enough. Experience tells us that a property receives its best exposure during the first three to five weeks, because buyers who have seen most available homes in their price range are waiting for the right house to come on the market. Impressive sales can lead to the "let's try it and see" pricing attitude, but testing the water often results in longer days on the market and an inevitable price reduction. Whether you're a buyer or seller, it is always wise to consult with a full-time, locally-based real estate specialist who can help you ascertain the exact market conditions in your neighborhoods of interest. Understanding the latest local trends in pricing and sales, as well as the mindset guiding the actions of successful buyers and sellers, is your key to success in today's market. 20 | Michael Saunders & Company

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