Miami Luxury Prices Expected to Rise in 2016

February 23, 2016

Throughout 2015 luxury market prices rose in Miami, and real estate values are expected to continue to appreciate but at a slower pace through 2016. Knight Frank predicts luxury prices in major global cities will slow by nearly half from 4% to 1.7% this year. In Miami-Dade, all-cash buyers fell from 56% in 2014 to 49.5% in 2015. There were a total of 10,428 cash sales in 2015. The majority of buyers of luxury properties came from out of state and foreign countries. This decline in foreign buyers is expected to continue through 2016, which will impact sales. The data suggests despite this decline in sales, prices will appreciate in Miami’s ultra luxury market.
While million plus market sales volume remains strong, there was more inventory available in 2015 than in the last three previous years. Miami has undergone a massive luxury building boom in the past couple of years. Now market demand is catching up with the number of available full service condos, which will impact sales across the luxury condo market. While top tier properties take longer to sell, the demand for luxury single family homes across the board remains strong. We expect Coral Gables, Coconut Grove, Miami Beach and Pinecrest to continue as top selling markets through 2016. For top tier properties, the market is leveling but remains healthy.