April 26, 2013
The real estate market in Miami and surrounding areas has been hot lately, thanks in part to an increase of wealthy overseas buyers purchasing vacation homes with cash. With foreign wealth flocking to Miami, luxury sales prices have increased in the first quarter of 2013, on a year-over-year basis.
The latest data released by Douglas Elliman shows an increase in prices at the luxury end of the market. The luxury market is defined as the top 10 percent of sales. For luxury condos, the average sales price in the first quarter of 2013 was 1.57 million dollars, an increase of 18.5 percent from the first quarter of 2012. The sales price of luxury homes also showed a significant increase of 15.4 percent to 2.02 million dollars.
The influx of foreign buyers has also spurred the construction of new ultra-exclusive, oceanfront condos, such as 321 Ocean and One Ocean in Miami Beach. Currently, 3/4th's of condo buyers are purchasing with cash.
Source: The Wall Street Journal
