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| Mike Pappas |
MIAMI,
FL and PALM BEACH, FL – South Florida’s luxury condominium sector is
feeling the impact of oversupply, while more realistic pricing is resulting in
an uptick of high-end single-family sales in Palm Beach County, according to
The Keyes Company’s quarterly South Florida Luxury Market Report.
All-cash
condo and single-family transactions continued to decline in the second quarter
thanks to more accommodating lenders and low interest rates.
Miami-Dade,
Broward, Palm Beach and Martin counties had a year-over-year drop of 21% in
luxury condo sales, from 590 in the second quarter of 2018 to 466 in the second
quarter of 2019.
Cash
transactions declined by 20.5% year-over-year to 337. The average sale price
slipped by 9.1%, from $2.22 million to $2.02 million.
Single-family
sales in the four counties had a significantly less severe decline, with a 2.6%
year-over-year decrease in total sales to 951 and a 2% drop in cash sales to
541.
The
average sale price fell by 8.4% year-over-year, from $2.62 million to just
under $2.4 million.
Palm
Beach County’s high-end single-family market was a bright spot for transaction
activity. The county had a 7% year-over-year uptick in single-family sales to
429 and a 15.8% jump in cash sales to 301. This was fueled by a 13.8% decline
in average sale price, from $3.03 million to $2.61 million.
“While
South Florida’s luxury market consistently outperforms the national market, it
is not entirely immune from the decline in high-end sales occurring
nationally,” said Keyes President and CEO Mike Pappas.
“During the second quarter, we saw the
short-term impact of oversupply issues. But we still expect to see sales pick
up throughout the region in the second half of 2019, as sellers adjust to
today’s pricing.”
Pappas
notes that looming interest rate cuts should ensure a strong second half of the
year for South Florida’s luxury market – especially when combined with
heightened demand from residents of tax-heavy states.
“These
domestic luxury buyers are going to be opportunistic and capitalize on the
lower interest rates to secure a win-win scenario of reduced rates and
substantially lower taxes,” said he said.
“When
the interest rate rose to 5% in October 2018, it essentially shut down the
market.
"There has been a one-point drop since then and the promise from the
Federal Reserve to drop rates further.”
Keyes is the largest independently owned real estate firm in Florida and a Top 30-ranked firm in the entire United States, and is extremely active in luxury residential real estate. In 2018, Keyes generated $6.7 billion in real estate services across its Family of Companies.
CONTACT:
Eric Kalis
Vice President, BoardroomPR
O 954-370-8999
C 305-794-5123
Bank of
America Plaza | 1776 N Pine Island Road
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