To get a sense of how much demand there is for luxury lakefront homes in the Orlando market, look at what happened this year along Park Avenue in Winter Park.

After mansions located next to each other were torn down, two separate buyers jumped at the opportunity to snag the now-vacant lots on Lake Maitland with plans to build their dream homes from scratch.

They paid a premium. One lot sold for $5.5 million in August. The other sold for $6.8 million in October.

“There was nothing like this land in Winter Park,” Brian Mitnick, a realtor with Re/Max 200 involved in both deals, told GrowthSpotter. “Here’s the problem: Right now, I’ve got two or three people who are looking for lakefront homes on the Winter Park chain of lakes and they’re just non-existent. The only way to find anything (here) is to tear something down. But you’re going to have to pay for it.”

Across the Greater Orlando metro, there aren’t enough luxury homes on the market — particularly of the lakefront variety — to keep up with demand as more and more move to the area. So when one does become available, people are willing to fork over big money.

An Isleworth mansion spanning 26,000 square feet sold for an eye-popping $35 million in February, kicking off another record-breaking year for luxury home sales in the four-county Orlando market.

The $35 million sale of the six-bedroom, 9.5 bath-home more than doubled the previous record of $15.2 million set in 2022. All told, it was one of three homes to close for more than $9 million and one of 1,600 over the $1 million mark in 2023.

By comparison, 2020 saw 695 home transactions over or equal to $1 million, according to data provided by the Orlando Regional Realtor Association.

“You have more people who are willing to pay that to get the house that they want in the location that they want,” said Lisa Hill, president of the realtor association.

Local real estate leaders say that while luxury prices have surged compared to previous years, estate homes are still more affordable here than other parts of the state or country.

“We have folks buying (here) from all over the world,” said T.J Cosgrove, a realtor with Reunion Realty whose top sale this year was a $6.5 million vacation home in Reunion with nine bedrooms and 11 bathrooms.  “People come for the sun, and they come for Mickey Mouse. Compared to other places, Orlando is cheaper. …We have a huge influx of people coming from California. They see Orlando as a good deal.”

The most expensive home sold this year in Orlando was previously owned by former Orlando City soccer club owner Flavio Augusto da Silva and his wife, Luciana. The home includes a bowling alley, indoor basketball court and 25-seat home theater.

Windermere’s Isleworth community also had the second most expensive home sale in the Orlando market this year.  That six-bedroom, seven-bath 9,500-square-foot home sold for $12 million in August.

Both of these homes have at least one thing in common: They are located on a lake.

“You’re still seeing a limited commodity, waterfront property, be highly desirable and that’s pushing price points,” said Alison Mosely, a real estate agent with Premier Sotheby’s International Realty.

That realty company was the listing agent for a 5,377 square-foot home on Seminole Boulevard in Winter Park that sold in February for $7 million. The custom home built in 2014 includes four bedrooms and four bathrooms.

It, too, is on a lake.

And while two mansions in Winter Park were demolished this year to make way for new homes, Mosely said most of the lakefront estates aren’t tear-down ready.

“There’s only so many lakefront homes to go around, and many of the lakefront (homes) aren’t going to be torn down,” she said. “It’s increasingly becoming more difficult to find homes in the heart of these luxury markets. They’re becoming non-existent. Supply and demand always has an effect on price.”

The demolition made sense for Mitnick’s clients. Both of the homes needed extensive renovations, repairs and upgrades.

One of the homes was built in 1939 and was previously owned by the family of homebuilder Charlie Clayton.  Spanning more than 19,000 square feet, it had a total of eight bedrooms, nine full bathrooms, five half baths, three kitchens, two garages, huge closets, and more.

The other home next door, while much newer, had rotting wood and a termite infestation problem, Mitnick said.

“Before you know it, the renovation costs more than building a new home,” he added.

With limited lakefront land available for new homes, he expects to see more older estate homes come down going into 2024 and beyond.

“Some people don’t want these older houses,” Mitnick said. “There’s more demand for new homes where buyers can build what they want. And when this land becomes available, people step up to the plate.”

Have a tip about Central Florida development? Contact me at (407)-800-1161 or dwyatt@GrowthSpotter.com. Follow GrowthSpotter on Facebook and LinkedIn.