What To Expect In Miami’s Luxury Real Estate Market During 2023 Posted on December 5, 2022December 12, 2022 by Sarah Elles Boggs Inflation. Interest rate hikes. Supply chain problems. Layoffs. Crypto-crash. Now that Art Basel 2022 is a wrap, these are the buzzwords that fill news stories leading up to the end of the year. What a buzz kill. But does this tell the entire story? Not according to Knight Frank, one of the globe’s largest real estate consultancy firms. Each year, Knight Frank publishes its annual Wealth Report. This consists of a breakdown of the world’s prime property markets. It goes through global wealth distribution and threats and opportunities for wealth in these top markets. The 2022 Wealth Report has listed Miami as the second fastest growing luxury real estate markets in the Americas with just over 28% growth since 2021. Knight Frank Luxury Markets Growth 2022 We make it a point to remain objective about Miami’s position in the global arena, the pros and the cons, and what needs to happen in order to ensure we remain perched at the top of the list. For 2021-2022, the growth was largely fueled by the aftermath of COVID-19 and then intensified by Florida’s tax climate paired with Miami’s collaborative business culture. Let’s be honest. If we are forced to quarantine in place and remote working is a viable option, are you going to work remotely in a snowy, dreary climate with excessive taxes, or would you rather quarantine in a sunny climate that invites breezes coming through open windows as you collaborate with others in your field without the worry of excessive taxes? The answer is clear. All of these positive attributes aligned and created a run on the luxury real estate market, throughout Greater Miami (including Coral Gables, Coconut Grove, Downtown Miami, Edgewater/Wynwood, Brickell and Miami Beach). Available inventory was snapped up at record pace and for record prices, yet the prices were still viewed as a bargain for New Yorkers who are accustomed to price tags over $5,000/square foot. In turn, the prices of luxury properties rose over 28%. Is this growth sustainable? Now that we are inching closer to 2023, the Fed has steadily raised interest rates, inflation has hit an all-time high, FTX bombed the already struggling crypto market big time and a new Presidential race is beginning to simmer in the wings. Will we crash or will we continue? It would be very easy to say that because of the crypto markets alone, Miami should prepare for a hit. Knight Frank does not share this sentiment, having ranked Miami again as the second overall market for the high-end housing market. It does predict a slowdown, but not a bust. Rather than the unheard of 28% growth, we should expect a 5 percent price growth in 2023. This may seem like a stumble, however compared to the 2 percent growth anticipated for the global luxury market as a whole and the previously forseen 2.7 percent growth for the Magic City, this really is something to celebrate and look forward to. We are moving back into a place of stability and manageable growth. As we mentioned last week, both the art world and the real estate markets are trending toward traditional, tangible choices. Kitschy digital art did not sell as well at Art Basel as it has in recent years, and the new luxury developments that are performing the best are those with a timeless, elegant feel. Examples, please. Lest we all forget the banana duct-taped to the wall that sold for over $2 million at Art Basel Miami Beach 2019. This year’s viral piece was an ATM that doubled as a leaderboard, ranking attendees by their bank account balance. It did not sell, but was an awful lot of fun and an amazing conversation piece, even if the novelty does wear off as quickly as the 2019 banana on the wall turned brown. While gallerists noted a drop in digital art sales, there was an uptick in more traditional works by artists who used more traditional media. Rather, paintings by Agnes Martin and Phillip Guston were trading for $7 million. Warhols were changing hands. The same holds true for the real estate presented. The real estate projects that fared the best were timeless. Exclusivity and privacy took a front seat to overt opulence and garish finishes. Six Fisher Island Drive was one of the standouts of this year’s fair. This is the new development that is already infamous as being so exclusive, you have to be invited to even consider purchasing. Other new projects that we are seeing perform increasingly better over recent months are those that have solid brand names such as St. Regis Sunny Isles (pictured above), Cipriani in Brickell, and Waldorf Astoria Residences in Downtown Miami. Another strong sector in luxury Miami real estate is new developments that pay homage to nature and wellness. We are very excited to see these projects come to fruition and contribute to the evolution of Miami’s always-changing skyline. If you are interested in speaking more specifically about a neighborhood, project or listing, please contact Michael Light, Broker and Executive Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.
May 2017 was a Historical Month for Miami Real Estate Posted on June 27, 2017 by Michael Light May 2017 was a historical month for the single-family home market in Miami as total home sales, dollar volume, median prices, traditional transactions and luxury sales increased, according to a new report by the Miami Association of Realtors and the MLS. In May, 1,344 single-family homes in Miami were sold, which is the most in any May in the history of Miami real estate and a significant 9.9% increase from the 1,223 homes sold 1 year ago. Further, the existing condo sales are up 5.7%, total residential sales are up 7.7%, total dollar volume rose 14.7% and luxury single-family home transactions surged 23.5%. Luxury sales, which includes single-family homes $1 Million and above, have risen for 3 consecutive months, showing that the luxury market in Miami just keeps strengthening. Total Residential Sales Increase Sales for existing condos in Miami rose 5.7% year-over-year from 1,309 to 1,384. So, this combined with the 1,344 single-family homes transactions allot Miami-Dade County a total (existing) residential sales year-over-year growth from 2,532 to 2,728 transactions in the month of May. Pending sales data also shows signs for future growth in the Miami real estate market. The number of existing condos in Miami that went under contract in May grew 6.8% year-over-year and pending sales for single-family properties also rose 5.4%. May 2017…New Record for Single-Family May Home Sales This year’s May single-family transactions of 1,344 highly surpassed the previous Miami-Dade County record of 1,276 transactions in May of 2015. According to the Miami Association of Realtors, the increase in Miami single-family home sales is being fueled by a surge in mid-market (properties listed between $200k-$600k) and luxury transactions ($1 Million and above). Mid-market homes skyrocketed 27.9% from 756 to 967 sales and account for 71.9% of all the single-family home sales. Luxury transactions also skyrocketed 23.5% in May of this year. Single-family home sales, excluding distressed transactions, in Miami rose 21.4%, showing signs of the health and strengthening of the Miami real estate market. Median Prices Surge Median prices for both single-family homes and existing condos in Miami-Dade County surged in May. Single-family home prices rose 10.7% in May of this year and have risen for 66 consecutive months. Existing condo prices also jumped up 4.8% in May and have increased in 70 of the past 72 months. Despite increases in prices in the Miami real estate market, the value proposition of Miami real estate is so great that it remains a major bargain compared to other prime cities around the world such as Monaco, Hong Kong, New York and London. Seller’s Market for Single-Family Homes, Buyer’s Market for Existing Condos Inventory of single-family homes decreased 5% in May from 6,522 active listings in 2016 to 6,193 last month (2017). Monthly supply of inventory for single-family homes decreased 3.4% from 5.8 months to 5.6 months. The 5.6-month supply indicates a seller’s market. Inventory of existing condos increased 8.8% from 14,081 to 15,325 during the same period in 2016. Existing condos have a 13.8-month supply, which indicates a buyer’s market. The total active listings at the end of May increased 4.4% year-over-year, from 20,603 to 21,518 listings. Miami Real Estate Market Expert If you, or someone you know, are interested in buying or selling real estate in Miami, please contact Michael Light, Director of Luxury Sales at Douglas Elliman and Founder/Owner of the Miami Luxury Homes Group at Douglas Elliman. You may reach Michael directly at his office at (305) 350-9842, on his cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com. Disclaimer: Data referenced herein was received from a third-party, according to the MLS. This information is for informative purposes only and should not be relied upon.
High Pines Tuscan-Style Estate on Acre with Soccer Field Offered at $3.599M Posted on May 6, 2017 by Michael Light Miami Luxury Homes is featuring a spectacular Tuscan-style 7,555-square-foot estate on nearly an acre of land boasting an entertainer’s dream backyard with swimming pool, fire pit area and a full-size soccer field with bleachers located in the highly-sought-after neighborhood of High Pines. If you are looking to purchase a luxury home in this area of Miami, you must see this house…it is truly an extraordinary home. Private Soccer Field and Bleachers Location, Location, Location….Oh, and Amenities! Home buyers in Miami look for location and amenities, and this home has both! Located at 8040 SW 54th Court in the affluent High Pines neighborhood of Miami, minutes from Coral Gables, Coconut Grove and Pinecrest, this stunning home is situated in a highly-sought after community near great schools, shopping and entertainment and surrounded by natural park-like landscaping. This home is also 500 feet from one of the top private schools in South Florida, ‘Our Lady of Lourdes Academy.’ Interior Features and Amenities This 7-bedroom, 6-bathroom move-in ready home offers 5,303 square feet of actual interior living space encompassing 2 full stories. The first floor offers beautiful Jerusalem stone flooring, soaring-high ceilings, floor-to-ceiling high-impact windows, a grand foyer, formal living room, family great room, dining room and a gourmet eat-in kitchen boasting gorgeous custom wood cabinetry and premium appliances. Also situated on the first floor of the home is a library/office, spacious laundry room and Staff/In-Law’s Quarters. Formal Living Room Gourmet Kitchen The second floor boasts an entire wing consisting of a spectacular master suite offering enormous his and hers walk-in closets, dressing area, sitting area, private covered terrace and a spa-inspired bathroom with whirlpool spa and glass-enclosed shower with marble flooring and wet walls. The opposite wing of the second floor features 3 bedrooms and bathrooms with an oversized central foyer perfect for an office or children’s homework area. Master Bedroom Master Bathroom Master Bedroom Suite Covered Terrace Outdoor Features and Amenities When you first arrive at this High Pines luxury estate, you notice the large well-appointed circular driveway that leads you to the attached 3-car garage. You will also immediately enjoy the stunning mature trees and natural landscaping that surround the property from the street to the front of the house wrapping all the way around the entire property. The property, encompassing almost an acre of land, has an abundance of green space that may be used for a multitude of purposes, in addition to the already-established entertainer’s backyard that boasts a large covered patio, swimming pool, spa and plenty of space for sunbathing in comfortable cabana beds and lounge chairs. This beautiful High Pines estate also includes a full-size soccer field with bleachers, perfect for year-round tropical South Florida weather! View from Master Suite Terrace Exclusive Tour of This Luxury Estate This luxury home located at 8040 SW 54th Court in the affluent High Pines neighborhood of Miami is exclusively listed by Douglas Elliman Real Estate. If you, or someone you know, are interested in a private viewing of this estate, please contact Michael Light, Director of Luxury Sales at Douglas Elliman. You may reach Michael directly at his office at (305) 350-9842, on his cell phone at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.