Miami, July 9, 2010 – SoBeLuxuryHomes.com announces the results of its Miami Luxury Homes Market Trend Report – II Quarter 2010. The analysis draws from studying sales data across 3 different property markets in the Miami area: Miami Beach luxury condos, Miami luxury condos, Miami and Miami Beach Single family residences. The data is analyzed across three different price points:

 

 

The analysis points to the following market trends:

 

Stabilization of the Luxury Market --   The numbers suggest that the stabilization of the luxury market is due mostly in part by the tremendous increase in sales volume in Miami-Dade County for the last 20 months. As noted in the graph below, as of September 2008 sales of condos and homes have been increasing for almost 20 months mostly due to a steep decrease in prices, which has led to the stabilization (prices no longer decreasing) of prices over the last month and in some markets an increase of 2-3% in home values.

 

 

 

Inventory reduced by an average of 30% across all markets – even though inventory levels are still high at around 28 months of supply (a balanced market usually has around 12 months of supply), levels are dropping very rapidly in the1st quarter of 2010 we had a 40 months.  Trends indicate that the luxury market will be at or slightly above balanced levels by the end of the year. But that doesn’t mean that you will be able to get a better deal, as we saw in the under $500K market there were better deals to be had when inventory levels were high, a few months ago. This same trend will happen in the luxury market as inventory drops, so will the discounts.

 

The Ultra luxury market ($3M and up) saw the steepest jump in activity - as closed transactions jumped by 63% compared to the 1^st Quarter of 2010. Sales in the $3M and up market were very slow for most of 2009, the 1^st quarter of 2010 saw a rebirth of sales and as our data shows the 2^nd quarter saw considerably more action. This market saw an increase of sale price per square foot of 19%. 

 

Discounts in homes that successfully sold, ranged from 10-17% - from listing (asking) price, the larger discounted deals naturally came in the highest ticketed homes. There were some isolated deals that are worthy of mentioning a $16M penthouse at the Marquis in downtown Miami just sold for $4.2M (that is a 72% discount from asking price. This is a freak incident, in which the developer had an overpriced penthouse and decided to sell it for or just under real market value. 

 

                                               

 

SoBeLuxuryHomes.com was started in 2009 by Christian Kawas and Ivan Hernandez, Realtors with the prestigious firm, Douglas Elliman Florida. The website is focused on providing the best Miami and Miami Beach have to offer when it comes to the Luxury Home market. For more information please visit www.sobeluxuryhomes.com or call Christian Kawas at 305 608 6681.