Miami Luxury Property Sales Dip in Q2 as Foreign Buyers Slow
According to the Miami Association of Realtors, Miami-Dade County's luxury properties saw a rise in median sales prices while total luxury residential listings surged 26.7 percent in the second quarter. Yet sales of both luxury residential homes and condos slowed due to global economic slowdowns and weaken foreign currencies.
Single-family homes priced at $1 million or above had a median sales price of $1.75 million in the second quarter of 2015, a 6.06 percent increase from $1.65 million in the same time period last year. Luxury condos had a median sales price of $1.6 million in the second quarter of 2015, a 1.43 percent rise from $1,577,500 million in the 2015 first quarter.
Total inventory for all luxury residential properties increased 26.7 percent, from 1,894 in the second quarter of 2014 to 2,400 in the second quarter of 2015.
"Miami's luxury properties are among the most sought-after properties in the world," said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of Miami. "In addition to offering picturesque oceanfront views, Miami's luxury market offers buyers the ability to live, work, and play in what is America's second most important financial hub behind New York City. The recent growth in luxury listings and median prices is another sign of growing seller confidence in this sector."
Miami ranked as the sixth most important city in the world to ultra-high-net-worth individuals (UHNWI), according to the prestigious 2015 Knight Frank Wealth Report. UHNWI are defined as having a net worth of at least $30 million. Miami and New York were the only North American cities to make the top-10 list of the Wealth Report, which is issued annually by London-based real estate consultancy Knight Frank. London, New York, Hong Kong, Singapore, and Shanghai rounded out the top-five.
Yet Miami's strong dependency on foreign buyers to drive its local property market sales is the root cause of the recent sales slowdown, say some Wall Street analysts.
Given the significant economic slowdown and market volatility of emerging economies around the world, coupled with the collapsing value of many foreign currencies against the U.S. Dollar over the last year in places like Brazil, Russia, Canada and now China - all top feeder markets for Miami - have dramatically impacted the pace of Miami property sales in recent months.Miami Luxury Single-Family Homes
Miami luxury single-family homes declined 10.6 percent in second-quarter sales compared to the same period last year, from 310 to 277. The $1 million-plus properties spent 77 median days on the market in the second quarter, a 2.5 percent decrease from 79 days in the second quarter of 2014.
Luxury single-family homes continue to see an increase in new listings as seller confidence in Miami's luxury market continues. In the second quarter, 739 luxury single-family homes were placed into the market. That's a 15.8 percent increase from 638 in the second quarter of 2014.
The inventory for luxury single-family homes reached 1,227 in the recently completed second quarter, a 17.3-percent rise from the 1,046 listed in the second quarter of 2014.Miami Luxury Condominiums
Miami luxury condominiums saw a 9.4 percent year-over-year decline in sales in the second quarter of 2015, from 307 to 278. The median days on the market for luxury condos was 105, an 8.2 percent increase from 97 days in the same period in 2014.
Luxury condos had 21.9 percent more new listings in the recently completed second quarter, growing from 676 to 824. In the second quarter of 2015, the number of property listings for $1 million-plus condos grew to 1,661, a 32.2 percent increase from 1,256 in the second quarter of 2014.