 |
| Mike Pappas |
Pandemic likely to
result in down second quarter, but pent-up demand for $1 million-and-up homes
and condos should fuel quick rebound once travel resumes
MIAMI, FL and PALM
BEACH, FL – Luxury single-family home
and condominium sales increased significantly during the first quarter of 2020,
according to the quarterly South Florida Luxury Market Report produced by The
Keyes Company and Illustrated Properties.
The region’s high-end
residential market is expected to have a rough second quarter due to COVID-19,
however, before bouncing back in a major way once travel bans are lifted.
Miami-Dade, Broward,
Palm Beach and Martin counties had a year-over-year transaction increase of 21%
for $1 million-and-up single-family homes, from 677 in the first quarter of
2019 to 819 in the first quarter of 2020.
The high-end
single-family sector also posted a 21% year-over-year jump in cash sales, from
376 to 456.
On the condo side,
South Florida’s year-over-year sales rose nearly 13%, from 358 to 404. Cash
sales increased by 9.4% to 290 during that span.
The region’s average
sales price for condos dropped by 12% to $2.19 million, a sign that sellers and
buyers were able to close pricing gaps during the first quarter.
Palm Beach County led
the way in overall gains for both luxury single-family and condo sales. The
county had a 24.5% year-over-year jump in single-family sales to 345 in the
first quarter, and a 35% spike in condo sales to 147.
Each sector
experienced a surge of cash buyers, with single-family cash sales increasing
20.3% to 231 and condo cash sales rising 27% to 113.
The second quarter of
2020 is likely to paint a different picture, with the COVID-19 outbreak
resulting in a dramatic short-term transaction slowdown. Looking long-term,
South Florida luxury sellers should benefit from pent-up buyer demand and tight
inventory levels.
“Once travel returns
to pre-COVID-19 levels, we will see even more domestic migration from New York,
New Jersey, Connecticut and other high-tax states in the Northeast,” said Keyes
and Illustrated President and CEO Mike Pappas.
“The pandemic’s
devastating impact in those dense Northeast markets is going to be the last
straw for those who hadn’t already relocated here following the SALT deduction
cap. Palm Beach County continues to be the top relocation target for such
buyers.”
CONTACT:
Eric
Kalis
Vice
President, BoardroomPR
O 954-370-8999
C 305-794-5123
Bank
of America Plaza | 1776 N Pine Island Road
Suite
320 | Fort Lauderdale, FL 33322
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