Buyers in Miami are turning to luxury in increasing numbers due to pent-up demand and low taxes, according to a report released Wednesday from the Miami Association of Realtors.
The number of luxury home sales—defined as those priced at $1 million and up—in Miami rose 24.1% in the 12 months to May, rising from 158 to 196 year on year, the report said.
The sales were buoyed by luxury condo sales, which surged 58.6% from 58 sales to 92.
“Miami real estate luxury sales continue trending upward,” said the Miami Association of Realtors chairman George C. Jalil. “Strong pent-up demand for $1 million-and-above Miami properties, sellers becoming more reasonable with their prices and the federal tax reform leading more home buyers from high-taxed northern states to purchase in Florida, which has no state income tax, are several key factors.”
Meanwhile, sales of overall Miami homes dropped 3.9% year over year, from 2,728 to 2,622. The decrease is due to a lack of inventory in lower price points, according to the report.
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Cash buys in the city made up 39% of sales in May, a slight dip from 39.4% last year, but far higher than the national average of 21%.
Of the cash purchases made in May, 50.9% were for condos, compared to 25.5% of single-family home sales.
Miami’s high percentage of cash sales reflects South Florida’s ability to attract international home buyers, who tend to purchase properties in all cash, the report said.
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