On May 18, 2017, the Wall Street Journal reported that the asking price on Florida's most expensive luxury residential property, the home of the late William B. Ziff Jr., had fallen by $30 million. The sprawling compound, featuring well over 30 bedrooms and about 50 bathrooms, has been in the market for two years now but there are no takers yet. Being one of a kind offer and located as it is in Manalapan, FL just south of Palm Beach; you may be forgiven for wondering what this $165 million home sale has to do with the Miami real estate market.
The drop in the late publishing magnate's family home's asking price is significant in that it reflects a wider trend in the luxury real estate market throughout Miami and state of Florida as a whole. For close to a year now, prices have been falling steadily. Despite that, countless condos are springing up all over the coast. You only need to scan the Miami skyline and the number of giant cranes dotted all over will offer adequate proof. In short, it is a buyer's market for luxury real estate investment in Miami. There may never be a better time to own a piece of a Miami luxury home than the present.
A report issued by ISG Miami, a company which surveys real estate sales data in and around the city, on Monday May 15th, 2017 showed marked slowdown in sales in all key luxury real estate Miami submarkets over the first quarter of 2017. The most lethargic sales were in downtown Miami, Fort Lauderdale and the Beaches. Sales were relatively more brisk in areas like Brickell/Miami River, Key Biscayne, Biscayne corridor, North Miami Beach, Coconut Grove and Aventura but still substantially down on last year's figures.
Market analysts believe that the current trend of falling prices will continue for most of the year, and maybe well into 2018. Part of the reason the prices have fallen down so significantly is that inflows to the Miami luxury real estate investments market from South American economies such as Brazil and Venezuela have slowed down to a trickle owing to the spiraling global oil prices and civil unrest. The outlook is especially bleak for real estate developers with oceanfront properties in the crucial Miami Dade County with many happy just to break even for now.
Another reason why there is a supply glut in many Southeast Florida luxury communities is that in the run-up to the 2016 US general Elections, many would-be homebuyers held off from putting money in luxury homes, waiting to see how the election would go. The cumulative effect is that anyone looking for a new condo or some other luxury development will be spoilt for choice in 2017.
As a luxury real estate buyer, there is no time like the present to invest in Miami real estate. With a wide array of condos and single family homes coming to the market but buyers in short supply, you will be spoilt for choice. Best of Luxury Realty offers you the most comprehensive and up-to-date listing of Miami luxury developments to guarantee you the best value for money. As a local realty company, we have more accurate data, including hot off-the-press offers, more than you can say of nationwide companies which curate their data from apps like Zillow.