Miami Luxury Housing Market Prices and Sales Continues to Rise

January 30, 2013

It was hard to tell the end of last year whether waterfront condos and estates were going to continue to go up in sales and sell at the same rate or not. Many luxury buyers were waiting to see how things were going to turn out in Washington before they decided to buy another property.

Vanessa Grout, CEO of Douglas Elliman Florida, said that, with the fiscal cliff situation resolved, things were looking up for the Miami residential market. “Prices have continued to increase, and the increase has been dramatic over the last year,” she told The Real Deal. “The amount of inventory is decreasing, the days on the market have decreased, and the average prices have increased — so you look at all the factors and it’s finally making sense.”

The luxury housing market has seen a pretty significant increase in sales prices. The median luxury condo sales price was 1.18 million dollars, which is up 32.6 percent from a year ago, according to a report prepared by Douglas Elliman Florida. The report examined the sales and sale prices of Miami’s coastal communities, from Pinecrest in the southern part of Miami to the surfside toward the north. The report found that the single family market the median sales price was one million and four hundred thousand dollars, which is a 30.1 percent increase from last year.

More crucially, Grout said, was the decrease in share of the market held by distressed inventory, which fell to 40.2 percent, its smallest share in more than three years.

The distressed market also showed a 3.4 percent increase in condo sales prices and a 12.8 percent increase in single-family home prices.