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| Kevin M. Leonard |
MIAMI, FL and PALM BEACH, FL -- South Florida’s luxury
condominium sector enjoyed a substantial rise in average sale prices, while
high-end single-family sale prices posted a slight decline in the first quarter
of 2019, according to The Keyes Company’s quarterly South Florida Luxury Market
Report.
All-cash
condo and single-family sales dropped significantly as lenders become less
stringent and interest rates remain low.
The average price for condo sales of $1 million or more in
Miami-Dade, Broward, Palm Beach and Martin counties was $2.84 million in the
first quarter of 2019, a year-over-year increase of 18.1 percent.
Palm
Beach County experienced the highest year-over-year jump in average condo sales
price, with a 42.2 percent gain to $2.65 million.
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| Mike Pappas |
Miami-Dade County had a 12.4
percent average condo sales price increase to $2.68 million, while Broward
County’s average rose 9.9 percent to $1.66 million.
In the single-family sector, South Florida’s average sales
price inched down by 1.3 percent year-over-year to about $2.5 million. Palm
Beach County had the largest average sales price decline, with a year-over-year
drop of 9.5 percent to $2.73 million.
Miami-Dade
County went in the other direction, however, as the average sales price climbed
18.6 percent to $2.75 million.
“The major gains in luxury condo prices across the region
reflect the intense demand for that product from local, out-of-town and
international buyers,” said Keyes Vice President of Luxury Kevin Leonard.
“On the single-family side, we began seeing
the slight pricing decline in the third quarter of 2018 and are not surprised
to see it continue. But Miami-Dade County’s impressive pricing increase shows
the trend is specific to Broward and Palm Beach counties.”
All-cash transactions are down in both the condo and single-family
sectors. South Florida posted a 14.3 percent year-over-year decline in all-cash
condo sales to 258, while all-cash single-family sales dropped 19.5 percent to
367.
Miami-Dade
County had the largest decline in all-cash sales for both sectors, with a 24.1
percent decrease to 126 on the condo side and a 36.8 percent drop to 74
single-family all-cash sales.
“The reality is, most luxury buyers – especially domestic
U.S. buyers – are going to finance their purchases if the rates and terms are
favorable,” said Keyes President and CEO Mike Pappas.
“If
the Federal Reserve follows through on its announcement to keep interest rates
unchanged, we will see all-cash transactions drop further over the course of
the year.”
CONTACT:
Jasmin
Curtiss
Account Executive, BoardroomPR
O 954-370-8999
Bank of America Plaza | 1776 N Pine Island Road
Suite 320 | Fort Lauderdale, FL 33322
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