While this year hasn’t been so great for the luxury housing market, one city has seen a positive trend.
According to Knight Frank Wealth Report, Miami placed No. 1 for the fastest-growing luxury real estate market in the U.S. It also ranked No. 5 among the fastest-growing luxury real estate markets in the world, following Madrid, Berlin, Paris, and Cape Town.
High-end home sales bounced back in Q2, Redfin said in September. Prices went up 1%, a significant jump from Q1’s decline of 1.7%.
In the first quarter of 2019, luxury home prices declined for the first time in three years, and sales saw their largest decline since 2010, when supply increased by double digits.
In 2018, Coldwell Banker named Palm Beach, Florida, as one of the top five luxury buyer power markets.
The Miami luxury real estate market has seen a positive trend in new and existing construction properties, seeing record sales activity in the last few years, according to a release.
Because of lack of an income tax imposition in Miami, investors and hedge fund managers have sought refuge from other large metros where other sizable income taxes exist.
Lower tax policies in Miami have attracted the attention of other high-end markets to the Sunshine State. According to Realtor.com and Trulia.com, overseas shoppers are also setting their sights to Miami.
In turn, the cost of luxury residences have increased in value. The median price of luxury single-family homes in Q1 rose 61% year over year to $10.1 million. Luxury condos rose 12.7% to $3.23 million.