May 11, 2017
Lower prices helped propel the Miami luxury condominium market in March, according to a recent report. Sellers lowered prices, hoping to boost luxury condo sales, and the result was a 31-percent increase in sales of condominiums priced over 1 million dollars, when compared to March 2016. However, only 2 of those units sold for the full asking price. Condominiums listed closer to the final selling price sold faster than those originally listed at a higher price.
However, despite the increase in sales, there is still a four-years' supply of luxury condos on the market in Miami. This is partially due to a decrease in Latin American investors. While real estate analysts believe that Canadian and American buyers will continue investing in Miami real estate, it will take time to decrease the current inventory glut.
Price reduction may be the key to upholding the current momentum in the market. In March of this year, 92 condos priced above 1 million dollars sold in Miami-Dade County, versus 51 in February. Buyers who were previously waiting out the market seem to be jumping in, due to the lower prices.
For the most comprehensive information on the luxury real estate market in Miami, contact award-winning broker Niki Higgins at +1-954-817-2500 or +1-888-242-4422.
Source: Miami Herald
