[Because of an editing error, the story below did not appear in its complete form in this week's issue of Greater Wilmington Business Journal. The story appears here in its entirety. We apologize for the inconvenience.]

Savvy homebuyers are keeping an eye on choice properties and snatching up deals with $1 million or more price tags.

The Wilmington area has seen a 17 percent increase in transactions on luxury homes priced more than $1 million since last year. According to the Wilmington Regional Association of Realtors’ multiple listing service, this year there were 68 such transaction sides totaling $103,986,000 compared to 58 transaction sides last year totaling $93,753,700.

“The fear factor has lessened. They are seeing some really good buys from motivated sellers,” said Vance Young, an Intracoastal Realty agent. Coupled with low interest rates, some buyers are finding deals they can’t resist.

Young closed on a $2.1 million home in Landfall at the end of October. An actively employed couple from Connecticut bought the house to get ready for their retirement, which is still down the road. They plan to continue to work for another two to three years and then retire in Wilmington.

Intracoastal Realty reports an increase in transactions of homes more than $1 million this year. The company had 39 transaction sides of luxury homes – 18 listings and 21 buyers in 2010. Those transactions total $58,437,750, a 34 percent increase in dollar volume from last year. In 2009, the company which represents about 56 percent of the market share on homes over $1 million, made 29 transaction sides totaling $48,838,850.

UNCW associate professor of finance Ed Graham researched the local real estate market in March and June this year and found that owners with homes over $1 million were not selling. In fact, in the second quarter of this year, the Wilmington Regional Association of Realtors’ MLS reported a 57 month supply on homes $1 million and more. While the third quarter showed some movement as the supply of homes in that price range dipped slightly to 54 months, it was not as good as the first quarter’s 51 month supply in New Hanover County.

Since Aug., 11 luxury homes have sold in the area. “Both buyers and sellers are softening in their demands,” Graham said. “I’m hopeful that the residential markets are finding a bottom.”

Of those sold, one home is on a historic piece of property at 2609 Shandy Lane. It had been priced at $1.59 million last year and relisted at $1.37 million in April. “There was a lot of interest,” said Debbie Mitchell, the agent with Intracoastal Realty who represented the buyer and seller of this property. She said within the past six months about four people were interested in the property, which included a deeded piece of land for a boat dock. It sold for $1.24 million on Sept. 17.

Mitchell had more than one offer on another home even before it was listed. News spread by word of mouth that the house located at 6450 Shinnwood, a foreclosure property on the water and appraised at $1.4 million, was available. It sold for $1.1 million. “The buyer had been looking for awhile. It was a great opportunity at a great price,” she said.

Still, finding financing has been the biggest challenge to sales, said Bobby Brandon, another agent with Intracoastal Realty. In some cases, he said he has seen buyers pay as much as 40 to 50 percent down in cash or investments to not go the jumbo loan route.

Landfall

More young families and retirees are buying property in Landfall’s gated community. “A lot of people are moving in who were not moving in 10 years ago,” Vance Young said.

Additionally, Young said he is getting many of his sales from northern suburban pockets like Fairfield, Conn. This past summer he travelled there to present with the Country Club of Landfall. They solicited names of friends and co-workers from people who have already relocated here and presented to about 60 of their acquaintances. “We had a warm reception,” he said. Since the presentations, six people followed up with a visit here and two have since bought property, he said.

He said he is working on a presentation in the spring in Bergen County, N.J. and a show in northern Chicago.