Year-End Update on the Luxury Real Estate Market by THE NELSON GONZALEZ TEAMDecember 13, 2016
With 2016 coming to an end, we wanted to give you an update on the luxury real estate market and how it compared with the year 2015. In the last several years, Miami’s luxury real estate seems to have been a magnet fo domestic and international buyers, whether the reasons being Florida’s favorable tax regulations, global economic weakness, violence abroad, or governmental unrest in South America. With its beautiful sandy beaches, great year-round weather, and many restaurants and cultural attractions such as Art Basel, Art Miami and the International Boat show, how can one resist South Florida’s waterfront real estate?! The year 2015 was one of the most active years for the real estate market in South Florida. We personally sold nearly $200 Million worth of luxury homes and condos, including three of the largest mansions on Miami Beach and Indian Creek Village, all with a selling price tag of $30M+. The year 2016 however, showed to be a bit challenging for the high end homes and condos. Although we sold another waterfront estate in Coconut Grove that broke all records with its selling price of $34.5M, the luxury real estate market was soft overall, as most of international buyers were apprehensive due to the strong US dollar and their unstable economy while the domestic buyers due mostly to the uncertainty with the US elections in full swing. It is usually the case in most election years that the domestic buyers of big ticket items such as homes, cars, and appliances tend to slow down a bit, but this year’s elections have been well… "special" and hit the breaks on the real estate market a bit harder. Since the summer, with the international currencies, including the Euro, getting a bit more attractive against the US Dollar and oil prices on the rise, the international market in Miami has shown some signs of life, especially after the presidental election. Inventory levels have started to flatten and sellers are repricing their homes more competitively. We are seeing many Europian and South American buyers currently actively looking at homes, condos, and vacant land, and want to make Miami Beach their home. Now with the elections behind us, we have noticed that domestic buyers are on the move as well, as the showing requests for waterfront homes have increased dramatically. Buyers are not only looking, but also making offers. The world has definitely set its sights on the luxury real estate market in Miami Beach. North Bay Road, Pine Tree Drive, Flamingo Drive, the Venetian Islands, and the gated communities such as the Sunset Islands, La Gorce Island, Star Island, Palm and Hibiscus Island, and Indian Creek Village are Miami Beach’s most sougth-after luxury real estate locations. It seems that everyone wants a slice of paradise, and our prediction is that the next 12-18 months may still be a challenge for the high end real estate market, but sales should get a bit of a pop now that certainty is starting to creep back to the market. With its stunning and unparalleled views of Biscayne Bay waterfront and the Atlantic Ocean, who would not want to call any of Miami Beach’s beachfront condos and waterfront homes their home?!
This market overivew on the Miami Beach luxury real estate market was provided by top producing realtor Nelson Gonzalez and Julijana Rose from THE NELSON GONZALEZ TEAM at EWM Realty International. If you need help selling or buying a home in Miami Beach and Miami call The Nelson Gonzalez Team and see how we can help you with your real estate needs.