Wednesday, June 21, 2006

McMansion Supply

The golden age of McMansions may be coming to an end. These oversized homes - characterized by sprawling layouts on small lots, and built in cookie-cutter style by big developers fueled much of the housing boom. But thanks to rising energy and mortgage costs, shrinking families and a growing number of retirement-age baby boomers set on downsizing, there are signs of an emerging glut.

The Ft Lauderdale Sun Sentinel has a story about the over supply of McMansions.
These houses often boast grand, two-story entryways, three-car garages, double-height family rooms and master-bedroom ``suites'' equipped with sitting areas and whirlpool tubs. Developers market the homes under names such as the Grand Michelangelo, Hemingway and Hibiscus - while detractors have dubbed them ``garage mahals,'' ``faux chateaux'' or ``tract castles.''

Sarasota will see the effects of this trend also.

1 comment:

SarasotaMan said...

I don't know what your definition of McMansion would be, but the Sarasota Herald-Tribune had a recent real estate article pointing out that the only part of the market that had not softened was for homes over $3 million. There were 74 closings in Sarasota during the first two months of the year.

Furthermore, there are currently slightly over 200 homes in the Sarasota MLS listed for $3 million or more.

Finally, the few realtors I know tell me that they are seeing plenty of interest from people who first looked in Naples and then came to Sarasota because, notwithstanding how expensive we think Sarasota is, it's still a bargain (about 30% less expensive) when compared to Naples.

You're entitled to your opinion, but don't place money on it.