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With Terry Story, 27-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL

Terry Story always reminds us that all real estate is local and so even when talking about high-end housing, the luxury market, it\u2019s no different.
Since February 7, the number of luxury homes for sale in our area (those priced between 1 to 2 million) jumped from 7 to 18, that\u2019s over 100 % increase, but there has been only one sale during that period. So clearly there\u2019s a stall at that level.
The median price here in South Florida is in the $500,000 range, which is over double the median price nationwide. This is the range of the move-up buyer, the executive type buyer, the relocation buyer, and these homes were moving up until late 2015. Then sellers began to hear that the market was going up 3 to 4%, and they then began to price their homes accordingly, causing another stall at this level. Terry thinks the buyers are actually there, but they're just waiting for the sellers to become more realistic with their pricing so inventory can start moving again. The irony here is that interest rates are lower today than back at the beginning of the year, and the market and the economy, in general, are doing well.
The main reason people are listing their homes right now is that they\u2019re looking for larger or nicer homes\u2014they\u2019re moving up the ladder, as it were. These move-up buyers, says Terry, account for about 40% and then those relocating to other areas comes in at about 24%.
The remaining percentage can be attributed to retirement, change in marital status from death or divorce, and then those wanting to move to a better school district, which is always a factor.
We live in a mobile society in stark contrast to say 40 or 50 years ago when homes were, if not forever, at least, for most of one\u2019s adult lifetime. Many of us move many times throughout our lives and that\u2019s what makes the real estate world go round and round.
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Steve Pomeranz: It's time for Real Estate Roundup.\xa0 This is the time every single week we get together with noted real estate agent, Terry Story.\xa0 Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida.\xa0 Welcome back to the show, Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: The markets ebb, and the markets flow, and there are low priced and medium priced homes, but today I want to talk about what the luxury priced market is doing.\xa0 It's not so healthy, is it?
Terry Story: You know, I mean everything is local.\xa0 You have to look in your own local marketplace.\xa0 What we've seen, Steve, since late 2015, there's been severe inventory woes.\xa0 You can see this in Manhattan, West Village, or Beverly Hills in Los Angeles, where actually it's more of high levels of inventory.\xa0 It's that old story, supply and demand.\xa0 The inventory levels are rising, and when inventory rises, prices fall.
I can relate that to my own marketplace.\xa0 I did a study the other day in an area that I sell a lot of.\xa0 Interestingly enough, I noticed that the inventory since February was seven luxury homes for sale, non-waterfront homes, and that to today's date jumped up to 18.\xa0 That's over a 100% increase in inventory.\xa0 Interestingly enough, during that, however, many months, February through August, there's only been one sale.\xa0 You've got to say to yourself, "All right, what's going on here?"
Steve Pomeranz: What are the general prices of these homes you're talking about?
Terry Story: This study that I did were homes priced from a million to two million.\xa0 Our median market price, in this area, is in the 500 range.\xa0 This is more than double the median priced homes.\xa0 This is your typical move-up buyer, your executive type buyer, relocating buyers,