Every market has its dynamics; some kind of observations that can be made both in the short term and in the long term. In South Florida, the bigger picture being made now is that more condominiums are coming up. All targeting those seeking high end lifestyles. To the real estate investors who do the math and investments, there is additional observation with regard to the property prices. It helps for the buyers as well to understand how the market is performing. Finding the best and affordable luxury condo in South Florida will be much easier when you have a clear understanding of the market.
Of course the prices are getting low
Let’s get back to the main agenda. It’s about prices. If you ask anyone, they will tell you how much they would love living on a penthouse on top of the new Jade Signature tower. Well, it’s how people are. To some however, that will be a tall order. Why? The cash is against them. Leave alone the case of a single individual. Let’s get to the details of the general market view. As a matter of fact, the prices of Miami luxury condos are getting down. Though not rapidly, but that’s the direction they adopt.
But not all properties are depreciating
Even when everything else flows down the river, the fish will find their way up. That’s the case with single family homes. Miami Single family homes are gaining value and their prices are getting up.
The numbers declare the fall
Let’s not talk things out of imagination. The facts lie with the numbers. In Miami-Dade County, the percentage drop in home was around 4.3%. A similar observation was made for Fort Lauderdale on a greater scale. The fall was about 3.7%. One may take such statistics insignificant but not the case for realtors. It gets worse when statistics show a decrease of 22% on luxury condo sales in Miami Beach. They form part of the people affected ad they have to re-strategize to keep their businesses running.
What are the reasons?
Time for analysis. Yes we have recorded a drop, but can it be explained? Well, three factors are to be blamed. These are the factors that bring the demand lower leading to the decrease of property values.
- Stronger dollar – when the dollar is weak, affordability rises. Since the recession, the dollar has been gaining value and that is part of the reason why people aren’t buying a lot.
- Latin America is suffering economic instability – when things are flowing right, that’s when businesses in various sectors flourish. But look at what is happening around the Latin America regions.
- Increase in inventory – well, investors heard of the boom in the south Florida luxury homes and most of them were for the idea. Now, the condominiums are all over. Call them a forest of luxury condo towers if you like. But they are in plenty.
All in all, there is no weakness recorded yet in the market. Its only that the buyers dictate what will happen in the market and the sellers have to adjust their approaches. You can expect more dynamics in the future.
For full inventory of Miami luxury condos and homes for sale please visit our Miami luxury real estate website.
This week’s hot developments on the beach are Ritz Carton Sunny Isles, Estates At Acqualina, Armani Residences, Turnberry Ocean Club, Porsche Design Tower, Fendi Chateau Miami, Surf Club Four Seasons Surfside, Eighty Seven Park Miami Beach.