South Florida’s luxury residential market has led the charge in the region’s recovery from years of real estate stagnation during the recession.
But several factors are now prompting market observers to question whether the luxury sector in Miami-Dade County is starting to lose its momentum.
Analysts and industry members point to a buildup of inventory and a strengthening U.S. dollar that, in some cases, has more than doubled the costs for international buyers, who have played a big part in Miami-Dade’s recovery.
South Florida’s luxury market is at a pivotal time in this cycle, said Peter Zalewski, the founder of Condo Vultures in Miami, and a columnist for The Real Deal.
Foreign nationals are still interested in luxury condos but are no longer excited about the price due to real estate appreciation as well as a strengthening U.S. dollar,he said.
Miami-Dade, which leads South Florida in both sales and inventory in the $1-million-and-up price bracket, has seen a dip in the number of transactions so far this year compared with the same stretch last year.
The county is seeing a flood of condo inventory as new buildings open and more sellers are being drawn into the market by higher prices.
[read more] Has Miami’s Luxury Market Lost Steam?
South Florida’s luxury residential market has led the charge in the region’s recovery from years of real estate stagnation during the recession.
But several factors are now prompting market observers to question whether the luxury sector in Miami-Dade County is starting to lose its momentum.
Analysts and industry members point to a buildup of inventory and a strengthening U.S. dollar that, in some cases, has more than doubled the costs for international buyers, who have played a big part in Miami-Dade’s recovery.
South Florida’s luxury market is at a pivotal time in this cycle, said Peter Zalewski, the founder of Condo Vultures in Miami, and a columnist for The Real Deal.
Foreign nationals are still interested in luxury condos but are no longer excited about the price due to real estate appreciation as well as a strengthening U.S. dollar,he said.
Miami-Dade, which leads South Florida in both sales and inventory in the $1-million-and-up price bracket, has seen a dip in the number of transactions so far this year compared with the same stretch last year.
The county is seeing a flood of condo inventory as new buildings open and more sellers are being drawn into the market by higher prices.
[read more]