What is a Luxury Homes on the MS Gulf Coast?
If you ask people to define "luxury" real estate, you'll get many different answers. A number of people may say $1 million and above, but in some markets, $1 million would be the price of a started home. Others may think "luxury" pricing begins at $10 million. Depending on the market and location, either of these answers could be correct.
In California, Hawaii or Cape Cod, the definition of luxury could begin at $5 million. On the Mississippi Gulf Coast, it starts at $365,420. How did we come up with this number? Our two preferred ways to define luxury real estate for any market are these:
(1) top 20% of listings, or
(2) top 10% in actual sales calculated by price.
Here's an example of the first way. Of all 27 areas identified by the local MLS (from Pearl River to Green County) - 3,212 homes are listed for sale at the time of this writing. Now, 20% of 3,212 is 642, so the top 20% of listings would mean the top 642 homes listed from lowest to highest price. In this case, any property priced at $471,870 would qualify as luxury.
Alternative, the top 10% of 4,843 actual sales from the previous 24 months are calculated the same way and result in an approximate cutoff point of $365,420.
In a stronger market where the supply and demand is more equally balanced, these two numbers - $471,870 and $365,420 - are often closer together. However, anyone can list a home at whatever price they choose, but can it be sold? Thus we tend to give more credibility at the prices of homes sold since that is the actual market (consumer) prices buyers are willing to pay for homes. So we define the Mississippi Gulf Coast Luxury Homes at about $365,420.
Certain publications and web sites featuring "luxury" homes maintain minimum prices for properties they list. These may or may not coincide with other real estate professionals chosen definitions of "luxury", so we use actual sales statistics to establish a standard in our business practices. Check out our Luxury Homes listings that includes our International shared listings at www.alndee.com
For more information of our strategic marketing plan for getting luxury homes sold, contact Al at (228) 374-0880 or at aallegue@remax.net
Contributed by Al & Dee Allegue
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