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After Hurricane-Related Delays, Miami Real Estate Bounces Back

Luxury single-family homes show the biggest gains

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Miami, Florida.

Roberto Machado Noa/Getty Images
Miami, Florida.
Roberto Machado Noa/Getty Images

Residential real estate sales in Miami bounced back in October after two months of delayed inspections, appraisals and closings following Hurricane Irma, according to a report Tuesday by the Miami Association of Realtors and the Multiple Listing Service.

The luxury market, defined as sales over $1 million, saw the biggest gains in October. Luxury single-family home sales jumped 22.2% year-on-year to 66 from 54, while existing luxury condominium sales rose 9.8%, to 56 from 51, over the same time, according to the report.

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"Delays in getting clean-up crews, inspectors and appraisers out to properties after Hurricane Irma stalled many Miami closings the last two months," said Christopher Zoller, the 2017 Miami Association of Realtors chairman of the board, in a statement. "Now that re-inspections are being completed and tree debris has been mostly removed, Miami real estate is back to another strong month of home sales. The rise in luxury home sales showcases the strength of Miami’s market fundamentals."

Before the real estate slowdown caused by Irma, Miami’s luxury market had been seeing improvements, thanks in large part to a recent lowering of luxury asking prices, expected interest rates hikes and uncertainty surrounding changes to the U.S.’s current tax plan, according to the report. It now appears to have picked up where it left off.

Miami’s existing condo —which are competing with one of the most robust new construction markets in the country— saw sales increase 1.5% year-over-year, to 998 from 983. Sales of single-family homes in Miami stayed almost flat, decreasing 0.4% to 993 from 997.

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Total existing Miami-Dade County residential sales increased 0.6% year-over-year to 1,991, according to the report.

November too, looks bright for Miami’s market. New pending sales, which is the number of listed properties that went under contract, increased year-over-year for both Miami single-family houses and condos in October, 2.3 % and 7% respectively.

Hurricane Irma, which made landfall in Florida in September, caused between $32 billion and $50 billion in insured losses, according to AIR Worldwide, a catastrophe-modeling firm. Dozens of people were killed.