Concierge Auctions: Miami Luxury Home Market Booms
There has been a shift in the South Florida luxury home market. Luxury condos and homes are being snapped up so fast by eager buyers, that some are questioning how long the supply will hold out. Currently, homes that aren’t even built yet are being sold as buyers from across the country, including Texas, California, Wyoming, Chicago, and the typical Northeast cities are snapping them up before the ink is dry on the plans.
There doesn’t appear to be any slowdown of buyer interest in the immediate future, according to CEO of Concierge Auctions, Laura Brady. In recent months, New York based luxury real estate auction marketplace, Concierge Auctions has seen incredible growth in the Miami area.
“Our volume has been strong and continued to increase in the last 12 months. Especially through 2020 [Florida] was one of the hottest states,” Brady said. “Unit-wise we [Concierge Auctions] had six sales already this year [in Florida], which is very strong.”
“We think we still have quite a way to go in these powerful markets, especially in Florida and Texas where there is inherent economic strength,” she added.
It looks like she is right. Major Florida broker, The Keyes Company, reported that in the first quarter of 2020, the sales of single-family, high-end homes shot up from 826 to 1,786 in 2021. This is coupled with a more than 20% increase in the average sales price, ranging from $2.55 million to $3.06 million. Cash sales also increased, more than doubling from 460 to 1,043.
Miami Condo Sales Skyrocket
In the Miami area, condo sales are leading the pack in sales. While high-end homes carrying price tags upwards of $150,000 million are moving at an incredible rate, it’s the condos that are the real surprise. The majority of the single-family home sales are all cash deals, no matter what the price tag reads. Condos, however, are a different story.
Craig Studnicky, CEO of RelatedISG, a Miami based realty group, said, “Condos are generally outpacing single-family homes sales. Condos are leading the parade.”
He continued, “It’s our forecast that by the end of this year the condo pricing will be a sellers’ market – the inventory is dropping that fast. There is a lot less inventory to choose from now.”
Buyer Home Preferences are Changing
Homebuyers are not looking for the same features that they were post pandemic. Larger homes, more space, more services, and a place where they can work as well as play are all on the homebuyer menu these days. Some experts believe that the pandemic has heavily influenced buyer preferences.
Outdoor space is a top-selling point as well. Landscaped yards and many outdoor amenities are valuable features that buyers are gravitating to and selecting. Some companies are even employing landscape architects to design exteriors of units to satisfy the resident’s needs and wants.
How long will this surge in luxury home buying last? According to the experts, it could go on for a while – especially with the dwindling inventory. As more sellers are relaxing with the rollout of the COVID-19 vaccines and are more willing to put their homes on the market, buyers are responding. It doesn’t appear to be slowing down any time soon.