From January through July, 355 homes sold in the $1 million-to-$2 million range, compared with 307 over the same period last year — an increase of just under 16 percent.

“Many of the builders have come off the sidelines after five years to take on land acquisitions,” said Eric Murtagh, who heads up the New Luxury Homes Division of Evers & Co. “Many of the speculative builders have been identifying properties suitable for new home development. It will affect supply by next summer.”