Keyes Luxury Report: South Florida Cash Transactions Decline, High-End Condominium Prices Surge in Q1 2019

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. 

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

jcurtiss@boardroompr.com

 O 954-370-8999

Bank of America Plaza | 1776 N Pine Island Road

Suite 320 | Fort Lauderdale, FL 33322

 Web | Facebook | LinkedIn | Twitter | Instagram