Luxury homeowners in Miami, Florida, are cashing in on rising prices as wealthy expats prowl the city for property investments.
Realtors say more homes are for sale and that prices are surging ahead of pre-recession values.
The US city is seeing a market split in half – with buyers and sellers thronging to deals over expensive homes, while those valued at $100,000 or less are difficult to shift.
“It’s a great time to sell,” said Liza Mendez, chair of the Miami Association of Realtors. “Many homeowners are realising the potential and the number of properties on the market is rising all the time.”
State of the market
In a report on the state of the market, the realtors reckon:
- Almost 1,800 single family homes are on the market – an increase of 11.4% compared with the previous 12 months
- Nearly 2,500 condominiums are listed for sale – a rise of nearly 2% year-on-year
Despite the flood of homes coming on the market, prices are also holding steady.
Single family homes priced between $600,000 and $999,999 make up 8% of all new listings, up 58.2% compared to a year ago. New single family homes costing from $400,000 to $599,000 are 11% of all listings, up 53.3% over the same period.
“More homes for sale means owners can see values are on the increase and that the Miami market has performed well over the past 36 months,” said Mendez. “Many owners have made up the money their homes lost in value when prices crashed and want to sell up and move on.”
The realtor’s association also reports sales are up, and new home listings are keeping up with strong demand rather than adding to inventory.
Around 13% of single family homes sold in November were priced between $300,000 and $399,999 – an increase of nearly 40% on the year before. Single family home sales of properties valued between $400,000 to $599,999 rose by 23% and those valued at $200,000 to $249,999 saw sales improve by 14.5%.
Condo sales dropped by just over 6%, mainly because more condos are in the $100,000 or less price band which is proving less attractive to investors because of the size and less attractive locations of properties.
Nevertheless, a fifth of the 1,275 condos sold in November were in this lower price bracket, but many of these sales were to local buyers rather than to overseas or out-of-town buyers.