South Florida Luxury Real Estate Market 2020 Sees Higher Sales & Lower Home Values

South Florida Luxury Real Estate Market 2020 Sees Higher Sales & Lower Home Values

luxury homes

As luxury home builders in South Florida, we make sure to keep up to date on the latest luxury real estate trends. Since luxury homes are investments, we think it’s important to know the state of the market. Whether we are carrying out custom home construction or providing home remodeling services, our Miami home builders are able to provide clients up-to-date information to aid their decision making.

The start of the new year came with the release of data on the luxury housing trends in South Florida. Two trends stood out in particular because, at first look, they seem antithetical to each other. South Florida’s luxury real estate market at the beginning of the year will be characterized by increasing home sales and decreasing home values.

Home Values Decreasing in Affluent Areas

According to a 2020 Zillow report, five areas in Miami-Dade County and two areas in Palm Beach County have an average home value of over $1 million. However, the report also found that home values declined from 2018 to 2019 in Miami-Dade.1

Decline in Home Values in Miami-Dade

  • Indian Creek: – 11%
  • Fisher Island: – 8.3%
  • Bal Harbor: – 5.3%
  • Key Biscayne: – 5.9%
  • Pinecrest: – 0.4%

These declines speak to bigger changes expected to continue in the South Florida luxury real estate market in 2020. There are fewer foreign buyers from places like South America, Central America, and Europe investing in South Florida luxury real estate. They are gradually being replaced by American buyers moving here for tax reasons. Additionally, luxury homes that have been on the market for some years will lower their prices to reach these new types of buyers.

“I think many of our sellers have been adjusting their prices in the last half of 2019 because many of them have been on the market for two to three years. In order to attract the buyers, they are reducing.” – Ron Shuffield, CEO of Berkshire Hathaway HomeServices, EWM Realty 2

Sales of Luxury Homes in South Florida Are Up

According to a report from the Miami Association of Realtors, all three of the major counties in South Florida, Miami-Dade, Palm Beach, and Broward, saw year-over-year increases in luxury home sales in December 2019.3, 4, 5

High-End Single-Family Home Sales Increases

  • Miami-Dade County: + 35.9%
  • Broward County: + 48.1%
  • Palm Beach County: + 17.3%

These jumps in home sales are due to multiple reasons, including the growing number of domestic buyers moving to South Florida for tax benefits, increased consumer confidence, low unemployment rates, and high job creation.

At HART Homes, our home builders in Fort Lauderdale, Miami, and West Palm Beach create beautiful, custom-built homes. We are familiar with creating residences in South Florida’s most popular styles, from Key West style homes all the way to French Countryside style homes.

Contact us to schedule a consultation with our expert team today. Take the first steps toward your dream home!

 

Sources

  1. Skylar Olsen, Zillow – There are 218 Million-Dollar Cities in the U.S., But the Stream of New Entrants is Running Dry
  2. David Lyons, Sun Sentinel – Our housing crunch in South Florida won’t get much better in 2020, analysts say
  3. Miami Association of Realtors – Broward County Total Home Sales Jump Double Digits in December 2019
  4. Miami Association of Realtors – Palm Beach County Total Home Sale Rise Double Digits in December 2019
  5. Miami Association of Realtors – Miami Total Home Sales Surge Double Digits in December 2019

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