Despite concerns regarding the concession and the struggles facing the housing market, Bird Key real estate still appears to be strong. In fact, fourteen luxury homes are currently being built on the small island. While this figure may not seem significant, it is far more impressive when considering that 14 homes represents about 3 percent of the total number of homes found on the island. Furthermore, the price tags on these homes are quite impressive, with the final cost of the homes estimated to be more than $14 million.
While each of the new homes is certainly quite lovely, the most impressive is the 8,000-square-foot home being constructed for Jimmy W. Hayes. Hayes, who is the chief executive of Cox Communications in Atlanta, is having the home built on West Royal Flamingo Drive. Just the land alone cost $2 million, while the construction is estimated to cost $2.4 million to complete.
Given the construction of homes such as the one that Hayes is building, many real estate market watchers on Bird believe the economy is starting to turn around. According to trickle-down economics, things begin to improve for middle and low-income people as wealthy homebuyers begin to show optimism toward the market. Still, economists warn that there is still a way to go before the economy shows any type of significant improvement.
“The increased luxury spending reflects a broad split in the labor market,” said Mark Vitner, who is a senior economist for Wells Fargo, in a recent Herald Tribune article. “A number of high-end occupations are doing relatively well, whereas the vast majority in the middle is still struggling because of a lack of access to credit.”
Nonetheless, it is undeniable that an increase in home construction activity is a good sign. Furthermore, thanks to the new construction, more money is being pumped into the local community. No matter how you look at it, this is good for Bird Key real estate for sale as well as its residents.
For more Bird Key real estate market information, contact the John Allen Team at 941-544-6467. One of our Bird Key REALTORS will give you a call right away.