Cash Deals Continue to Dominate Miami Luxury MarketApril 16, 2015
All-cash deals continue to dominate Miami’s luxury real estate market with foreign buyers leading the way. Cash sales represented 27.1 percent of the $1 million plus market in 2008, and they represented 61.9 percent of luxury sales in 2014. All-cash deals were half of Miami’s single-family luxury home sales in 2014. The groups dominating the cash sales include foreign buyers, and retirees selling their houses and then using the cash to purchase a home in Miami.
Foreign buyers started the all-cash trend, and for the most part, drive the majority of deals. Venezuela leads the pack as the top foreign buyer followed by Argentina, Brazil, Columbia, and France. Mexico and Canada tie for 6th place followed by Italy, Peru, Spain, Ecuador and the Dominican Republic. Miami’s reputation as a world-class destination continues to gain favor among the international elite seeking additional homes in a politically stable country. In the U.S., New York and Miami compete for first place in the number of homes purchased by foreigners.
The luxury market drives Miami’s cash deals. For the buyer searching for state-of-the-art homes with the latest in modern conveniences, Miami’s the place to buy. The attraction factor includes the city’s combination of world-class residences, low taxes, great weather, world-class cultural institutions and outdoor activities. The soaring luxury market does not show signs of slowing down anytime soon either, evident in the new construction of luxury residences funded in large part from all-cash pre-sales. An added bonus: Miami’s equity funded, rather than debt financed, luxury buildings strengthens the overall market position.