Experts predicted that 2017 would be a favorable year for real estate purchases in South Florida, and so far, that prediction has mostly held true. The current market climate is a result of several factors, including a price drop in Miami and several markets in the region that remain relatively affordable.
Whether you are planning a first-time luxury home purchase or an upgrade, now is an ideal time, with multiple opportunities throughout Fort Lauderdale, Delray Beach, Boca Raton, and Miami.
No matter when you plan on buying your next luxury home, it’s always a good idea to meet with a South Florida luxury real estate attorney to review your purchase agreement, for negotiations and due diligence, or help with your closing and title search.
Inventory for luxury homes remains high – driving down prices
As interest rates remain low and inventories remain high for luxury homes, it is currently a buyer’s market in several areas of South Florida. It was a seller’s market just a few years ago due to a weak dollar and an international buying frenzy, but it has been normalizing since then.
The market is not considered to be in any sort of major decline; sellers have had to simply adjust pricing in order to accommodate for a greater inventory, which some attribute to overdevelopment.
Buyers have a much wider selection to choose from in 2017 than they have had in previous years. They can often receive deals on extraordinary luxury homes – frequently below asking price.
Markets like Fort Lauderdale and Delray Beach offer excellent deals
Compared to Miami, Delray Beach and Fort Lauderdale often provide better luxury home deals. Snowbirds and relocators are attracted to Fort Lauderdale as they typically get more square footage and amenities for similarly priced homes in Miami. According to Mansion Global, luxury single family homes in Fort Lauderdale have had a similar median price of $1.7 million this year compared to 2016.
Miami condos are seeing more time on the market
Condos in Miami are seeing more average time on the market, as interest in the northern beach cities like Fort Lauderdale remains high. There were concerns about overdevelopment among the highest priced luxury homes in the Miami market.
This year, luxury condos in Miami have spent 2.5 months longer on the market on average compared to 2016. Sellers have also been more willing to negotiate on price in this market, as they have taken an average price reduction of 11.4% on condos compared to last year, while single-family homes have taken an average price reduction of 14.5%.
If you are planning on investing in one of these buyer’s markets in the near future, you should speak with a luxury real estate lawyer in South Florida to help plan your purchase and ensure that the transaction goes as smoothly as possible.
Call Schecter Law today at (954) 779-7009 for advice regarding your next luxury home purchase in South Florida.