Fourth Quarter Luxury Report for Miami Real EstateMarch 3, 2016
Across Miami-Dade, in the fourth quarter 2015, the million plus market took a tumble in November as sales dipped across the board. It’s suggested the dip was due to turbulence in the global markets. Yet, overall, the third quarter ended strong as 2015 marked one of the most robust markets Miami has experienced in years. Luxury sales accelerated throughout the year up to the fourth quarter. The total sales volume in the third quarter in 2015 for million plus homes in Miami-Dade was $4,247,112,685. The median sale price in Miami Dade County for million plus properties in the third quarter was $1,600,000.
Data pulled from five communities that consistently perform well in luxury sales: Coral Gables, Coconut Grove, Miami, Miami Beach and Bal Harbour show Bal Harbour scoring the highest median sale price for the million plus market at $2,650,000 followed by Coral Gables at $1,660,000. Sales volume across Coral Gables held steady throughout the third quarter.
Miami Beach has the highest sales volume followed by Miami and then Coral Gables. With a median sale price of $1.47M, Miami Beach has the largest sales volume for the million plus market and accounts for 6% of total sales volume for the million plus market in Miami-Dade. These communities continue to be the most desirable luxury markets along with Bal Harbour, and command the highest prices.
With a lovely selection of single family homes, including both older charming estates as well as new construction, Coral Gables and Coconut Grove continues to be the most popular areas for families. Coral Gable remains the strong hold and probably one of the most stable real estate markets across the county. The excellent schools available to families who live in the area continue to be a big factor in this strong, steady real estate market. Miami Beach and Miami tend to cater more to condominiums and buyers searching for pied a terres in the city or those who are working in the city and are childless. These are distinct luxury markets with different needs and tastes.
Given the downturn in the global markets in November, it is expected that Miami and Miami Beach will possibly experience a drop in sales volume because they are largely dependent on foreign buyers. A slowdown in buyers from abroad has an impact on these communities. It will also have an impact on Bal Harbour as well. Coral Gables retains an even amount of buyers including a large proportion of Northeasterners moving to Florida who continue to drive a significant share of the market. While much of Miami-Dade experienced turbulent home sales with market fluctuations, home prices continue to appreciate and sales in December across the county were strong. Going into 2016, the outlook for the luxury market is steady growth with a mild slowdown in sales.