Who’s Buying Luxury Real Estate in St Petersburg?
The luxury real estate market in St. Petersburg is red hot, with affluent buyers scooping up waterfront properties despite limited inventory. According to Aaron Hunt and Rob Johnson of Avalon Group, luxury home sales remain strong in St. Pete with high demand.
Who’s Buying Luxury Real Estate in St Petersburg: The Type of Buyer
Many out-of-state buyers from New York, Chicago, California, and Colorado are purchasing luxury real estate in all cash deals or with quick 30-day closings. Aaron Hunt says there has been an influx of buyers in early 2023. According to Hunt, “The luxury market is thriving and we’re seeing multiple offers on high-end properties.”
Rob Johnson has also sold luxury homes to buyers from across the country. He stated buyers want waterfront homes and aren’t deterred by Hurricane Ian. Avalon Group recently sold a home for $5.7 million.
Who’s Buying Luxury Real Estate in St Petersburg: Inventory Shortage
Hunt and Johnson agree that inventory can’t keep up with demand for luxury real estate in St. Pete. There is far more interest than available homes, especially waterfront.
According to Hunt, “Our area remains extremely desirable with much higher demand than our luxury inventory can match.” The Avalon Group seeks off-market properties to meet buyer interest. New spec homes sell rapidly, frequently before completion.
Who’s Buying Luxury Real Estate in St Petersburg: Market Predictions
The real estate experts predict continued strength in St. Pete’s luxury market. There is major investor migration from more expensive cities. Rob Johnson says St. Pete offers great value compared to South Florida, where buyers demolish $30 million estates to build anew. With planned developments, demand for luxury real estate should continue.
Who’s Buying Luxury Real Estate in St Petersburg: New Luxury Developments
Several luxury developments are underway or planned in St. Petersburg, catering to buyer demand.
There is a new luxury townhome community called Canopy Oaks with Backstreets Capital and Canopy Builders. The development will be located on Dr. MLK Jr. St. N. near the Euclid St. Paul neighborhood.
Meanwhile, Rob Johnson reports that local builders have multiple luxury homes under construction set to hit the market this spring. There is a developer working on a 7,200 square foot custom home in Shore Acres, slated to list around $7.5 million.
There is also a luxury condo at Ovation on Beach Drive, which went under contract for $4.35 million shortly after listing. The new condo inventory sells rapidly as well as seen in The Residences at 400 Central Avenue.
Who’s Buying Luxury Real Estate in St Petersburg: Long-Term Outlook
Hunt and Johnson are optimistic about the long-term outlook for St Petersburg’s luxury real estate market. They feel recent corporate relocations and remote work trends will continue bringing affluent buyers to the area.
Johnson also points out that luxury real estate often leads the market out of downturns. He believes the current economic uncertainty will not slow demand substantially.
With migration from more expensive cities, strong developer interest, and a terrific lifestyle, St. Pete appears poised for lasting luxury real estate success. Hunt and Johnson predict sustainable long-term growth.
Who’s Buying Luxury Real Estate in St Petersburg: Spec Homes in Demand
According to Rob Johnson, spec homes (homes built before having a buyer) are seeing high demand, even selling before completion. He stated that while buyers prefer turnkey properties, they will purchase spec homes that are nearing the end of construction.
Local contractor Tide Homes had planned a spec home on Brightwaters Blvd. NE, but it sold to a buyer who will now custom build on the $3.2 million lot.
Aaron Hunt is working with developers like Kasper Modern Homes who have several spec homes hitting the market this spring. He said agents maintain off-market lists of soon-to-be-listed spec homes.
Who’s Buying Luxury Real Estate in St Petersburg: Renovations and New Construction
With FEMA flood map changes, some older existing homes now require substantial renovations. But Johnson said buyers are often choosing to demolish and build new rather than update homes below the flood line.
Hunt added that new construction allows buyers to meet the latest building codes and get better insurance rates. So tear-downs are common when the land value exceeds structure value.
This trend benefits spec home developers and custom home builders. But it limits inventory of move-in ready luxury homes. Custom building may be the best option for buyers wanting specific high-end features.
Who’s Buying Luxury Real Estate in St Petersburg: Waterfront Demand Still Strong
Despite hurricane damage in other Florida coastal cities, Hunt and Johnson say demand for waterfront homes in St. Petersburg remains high.
Recent transplants from Colorado purchased a luxury waterfront home in Belleair Beach. Out-of-state buyers are less deterred by hurricane risks and more drawn to the St. Pete area lifestyle.
Johnson said the disasters did not dampen interest in local waterfront real estate. In fact, Avalon Group recently sold a $5.7 million oceanfront mansion in Pinellas to buyers unconcerned by storm surge potential.
Who’s Buying Luxury Real Estate in St Petersburg: Closing Timeframes
According to Hunt, luxury home purchases in St. Pete are still seeing quick 30-day closing timeframes, demonstrating the competitive market.
Cash buyers can sometimes close even faster. Johnson said all-cash offers provide flexibility and strength when bidding for premium waterfront estates against financed buyers.
Though rising interest rates have cooled bidding wars, Hunt noted quality offers are still common on high-end listings. St. Pete remains seller-friendly at the top end.
Who’s Buying Luxury Real Estate in St Petersburg: Appeal for Affluent Retirees
A major driver of luxury home demand in St. Petersburg is affluent retirees from other states looking for an ideal place to settle down. Aaron Hunt says many buyers are coming from high-cost areas and finding the lifestyle, amenities, and value appealing for their retirement.
The city offers a vibrant arts and culture scene, beaches, healthcare facilities, and plenty of community activities catering to seniors. These perks combined with a more affordable cost of living compared to places like New York and California make St. Pete enticing.
Johnson also noted the state’s tax advantages for retirees are attracting well-off buyers who want to preserve their wealth. Florida has no state income tax and other senior-friendly tax policies.
Who’s Buying Luxury Real Estate in St Petersburg: Technology and Remote Work
Improved technology infrastructure and remote work opportunities have enabled more high-income professionals to relocate to the St. Petersburg area as well.
Hunt shared that good broadband connectivity throughout downtown and beach communities now allows executives and others to easily work from home. This trend has opened up the region to more potential buyers.
Johnson added that a younger demographic of affluent tech and finance workers are now scanning the market. Open work policies following the pandemic have given them flexibility to live where they want.
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