Sales of luxury Miami homes surged in the first quarter of 2018, as the South Florida city started to benefit from a favorable state tax law, according to a report by the Miami Association of Realtors released Tuesday.
During the first three months of this year, there were 421 luxury homes sold in Miami—those priced at $1 million and above—up 12.3% compared to the same period last year. Sales of luxury single-family homes jumped 16.2% to 215, while sales of existing luxury condos increased 8.4% year-over-year to 206.
The strong growth in Miami’s luxury real estate market is partly due to the impact of the U.S. federal tax overhaul, according to George C. Jalil, chairman of the Miami Association of Realtors.
“Miami real estate continues to see major pent-up demand for luxury properties,” Mr. Jalil said in the report. “Miami and Florida as a whole is attracting Americans leaving high-tax states, such as New York, as the new tax law cuts into their income-tax deductions.”
Federal tax reform, which was signed into law last December, caps deductions for income, sales and property taxes at $10,000. The new law is driving residents of states with high property values and state income tax to states such as Florida, which has no state income tax.
— Mansion Global (@MansionGlobal) May 17, 2018
Meanwhile, the broader Miami market also continued to pick up steam. During the first quarter, the median price for single-family homes in Miami-Dade County increased 5.9% to $337,000, marking the 25th consecutive quarter with a price increase. The median price for existing condominiums rose 4.5 % year-over-year to $230,000.
The Miami Association of Realtors, a trade organization that represents roughly 47,000 real estate professionals in the region, doesn’t offer data about new condo developments, which often skews toward the pricier, luxury segment.
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