Fueled by a surging condo market, Miami luxury home sales jumped in the second quarter, according to a report released Wednesday.
From April to June, there were 591 luxury home sales, or sales at $1 million and above. Compared to last year’s 500 within the same period, the figure was 18.2% higher.
The number of luxury condo sales soared 37.1%, while single-family homes increased 5.9% year-over-year, according to Miami Association of Realtors.
Sellers of very fine luxury homes have adjusted prices “with a reduction ranging from 5% to 25%. That has stimulated pent-up demand,” said Christopher Zoller of EWM Realty International, who served as the association’s chairman in 2017.
Additionally, Miami has seen an infusion of out-of-state buyers since the new tax law was implemented at the start of the year.
“Miami is one of the most attractive cities with no state tax, many luxury buyers from New York, New Jersey and California are now buying residences here,” Mr. Zoller said.
The most expensive single-family home sold in Miami during the second quarter was the property once owned by real estate developer Thomas Kramer on Star Island. It sold for $33 million in June.
The highest condo sale was the penthouse at 321 Ocean Drive, changing hands for $26 million in May, according to Mr. Zoller.
Overall, the number of condo sales rose 5.6% to 4,033 in the second quarter. The sales do not include Miami’s multi-billion-dollar new construction condo market.
The median price of condos increased 5.2% year-over-year to $240,875. Cash sales accounted for 52.2% of all Miami existing condo sales, according to the report.
Meanwhile, single-family home sales in Miami fell 2.6% year-over-year to 3,782, mainly due to a lack of inventory in lower and mid-price points. The median sales price of existing single-family homes jumped 6.6% to $350,000.
Median prices for both single-family homes and condos in Miami have been growing for 26 consecutive quarters, the report said.