Leading real estate firm cites Northeast buyer interest following tax reform, pricing adjustments as key drivers for year-over-year transaction surge
South Florida’s luxury condominium and single-family residential sector experienced a dramatic increase in $1 million-and-up sales from 2017 to 2018, according to The Keyes Company’s year-end South Florida Luxury Market Report.
Miami-Dade, Broward, Palm Beach and Martin counties recorded 3,161 luxury single-family sales in 2018, up 14.7 percent from 2,756 completed sales in 2017. On the condo side, the four counties had a 26.6 percent year-over-year increase from 1,306 to 1,654.
The strongest growth on a percentage basis occurred in the high-end condo markets in Broward and Palm Beach counties. Broward County posted a 38.3 percent year-over-year gain in $1 million-and-up condo sales, from 227 in 2017 to 314 in 2018. Palm Beach County had a 36.3 percent jump in completed condo sales, from 342 to 466.
“The federal tax reform took shape early in 2018, allowing plenty of time for buyers from tax-heavy states to understand the impact and close on South Florida luxury home and condo purchases,” said Keyes Vice President of Luxury Kevin Leonard. “This should continue to be a major catalyst for our market going forward. Our agents are also reporting an influx of baby boomer-era buyers who have recently sold their businesses and are buying real estate here as part of a retirement plan.”
Leonard noted that these retiree buyers are often purchasing these homes and condos in all-cash transactions and are more motivated by the lifestyle than the investment opportunity.
Overall, cash sales continue to rise throughout South Florida. The region’s luxury single-family sector recorded a 10.7 percent increase in cash sales, from 1,530 in 2017 to 1,693 in 2018. Cash condo transactions jumped 27.6 percent, from 959 to 1,224.
The median sales price for South Florida luxury single-family homes stayed flat at $1.6 million. The condo median sales price slightly increased by 2.7 percent, from $1.46 million to $1.5 million.
“It is important to understand that in addition to the tax reform bringing scores of buyers from the Northeast, the increased activity was also a function of the market adjusting its pricing,” said Keyes President and CEO Mike Pappas. “Sellers of luxury properties in South Florida became more realistic about where the market is at from a pricing standpoint. The average list-to-sell price declined by 15 percent year-over-year.”
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 2017, Keyes generated more than $6 billion in real estate services across its Family of Companies.
To see the full report, click here: https://www.dropbox.com/sh/
About The Keyes Company: Independently owned and operated since 1926, The Keyes Company is a leader in the real estate industry. Keyes completed a merger with Illustrated Properties in July 2016. Keyes has 58 offices, more than 3,000 associates and nearly $6 billion in annual real estate sales and services. Keyes’ offices are distributed throughout six counties – Miami-Dade, Broward, Palm Beach, Martin, St. Lucie, and Volusia. Keyes expands our Associates’ reach globally as a Founding Member and Shareholder of Leading Real Estate Companies of the World®. In addition to our Associates’ expertise, The Keyes Company offers a suite of resources to cover whatever needs arise while buying or selling your home. Your mortgage, title, insurance, and property management needs can all be managed in-house, allowing us to close your deal with speed and efficiency while giving you the opportunity to talk to a real person whenever you have a question.
