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Luxury Miami Real Estate Transactions Surged in June

Mid and lower price points feel the effects of limited supply

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A view of the Miami skyline

Sevag Mehterian / EyeEm / Getty Images
A view of the Miami skyline
Sevag Mehterian / EyeEm / Getty Images

Luxury real estate in Miami-Dade County is booming, with top-tier transactions in the South Florida market increasing over 20% in the year to June, according to a report Monday from the Miami Association of Realtors.

Luxury transactions—defined as properties priced at $1 million and above—increased 21.5%, to 220 from 181 compared to June 2017, and have posted year-over-year increases in six of the last seven months.

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Luxury condo sales fueled the rise, jumping 28%, the report said.

Sales across the wider Miami-Dade County market, however, haven’t seen quite the same boon as the top end of the market.

"We continue to see a divided real estate market in Miami-Dade with strong overall demand for local properties," said George C. Jalil, chairman of the Miami Association of Realtors. "There is limited inventory available under $600,000. And while luxury sales have significantly increased over the last few months, high supply in the luxury sector offers great opportunities for buyers."

The limited supply at mid and lower price points is the cause behind a 2.8% decline in total Miami home sales but is also responsible for pushing up prices countywide.  

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Prices for single-family homes in Miami rose 6% in the year to June to $355,000, marking the 78th consecutive month—or six-and-a-half years—of increasing prices.

Existing condo prices rose 2.1% in the same time frame, to $240,000. Condo prices have increased in 82 of the last 85 months, the report said.

The total value of transactions in the county rose to $1.3 billion from $1.2 billion in the year to June.

Single-family homes saw their total dollar volume rise 17.1%, to $799 million from $682.5 million, while existing condo sales volume increased to $552.5 million from $508.5 million, a rise of 14.4%, in the same time.