Luxury home sales in South Florida have been growing considerably faster than the rest of the market—further evidence of the disconnect between the housing sector and the state’s economy, where hundreds of thousands of workers remain unemployed amid the pandemic. In October, nowhere in South Florida was that divergence more pronounced than in Miami’s single-family home market, according to statistics published this week from the Miami Association of Realtors. Million-dollar-plus house sales in Miami-Dade County more than doubled year-over-year, while overall single-family sales rose by a much more modest 15.7% during that timespan.
“Robust pent-up demand, record-low mortgage rates and purchases from tax-burdened Northeastern home buyers are fueling a resilient Miami real estate market,” said Jorge L. Guerra Jr., chairman of the board of the Miami Association of Realtors. Existing home sales are increasing across the board, with double-digit growth in both the condo and house market. But the growth has been heavily weighted toward high-end properties, especially standalone houses offering more space and privacy during the Covid-19 pandemic.
In October, there were 27% more million-dollar-plus condo sales than a year ago in Miami-Dade County, solid year-over-year growth but far less impressive compared to the 122% explosion in luxury house sales. The surge of luxury home sales drove the Miami-area median sale price up by $70,000 in October compared to a year ago, an annual increase of more than 19%. The divergence between the luxury and the mainstream market was almost as dramatic in Palm Beach County, home to President Donald Trump’s Mar-a-Lago club.
There were nearly one-third more existing single-family home sales in October in Palm Beach County than a year ago—a phenomenal growth rate. But that paled in comparison to the luxury market, where million-dollar single-family home sales soared over 140%. Luxury condo deals of $1 million or more grew by a similar margin—though they are far fewer in number. As witnessed in Miami, the spate of luxury sales has pulled the median price up in Palm Beach County. The median single-family home sold for $420,000—up 17% from a year ago.
The divergence was also apparent, albeit less dramatic, in Broward County, home to Fort Lauderdale. The middle county between Miami and Palm Beach saw million-dollar-plus house sales increase 84% in October, year-over-year.
Article source: Mansion Global