SobeLuxuryHomes.com

SoBeLuxuryHomes.com announces results of 3^rd Quarter Miami Luxury Homes Market Trend Report

-         Availability of luxury homes decreased by 5%

-         Traditionally slow quarter results in 20% decrease in sales volume vs 2^nd Quarter, but outpaces 1^st Quarter

-         Signs point to a strong upcoming season for the luxury market in Miami and Miami Beach

Miami, October 7, 2010 – SoBeLuxuryHomes.com announces the results of its Miami Luxury Homes Market Trend Report – III 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 and Miami and Miami Beach single family residences. The data is analyzed across three different price points:

1.        Chic Luxury, $500,000-$1,000,000

2.        Super Luxury $1,000,000-$3,000,000

3.        Ultra Luxury $3,000,000 and above  

The analysis points to the following market trends:

Short Sales see challenges; foreclosures are whisked off the market: During the past few months there has been a clear change in the way banks have been handling short sales and foreclosures.  Information points to much fewer short sales closing as a result of banks backing out of the sales, in some cases even at the closing table.  Foreclosures, on the other hand, are selling immediately with multiple full price offers. The conclusions drawn are that banks prefer to release the asset via a foreclosure than by the short sale route. As a result of many short sales failing to close, the volume of sales in Q3 has been negatively affected for the first time in 2 years.

Source: Florida Association of Realtors

Availability of luxury homes down 5% –   There are 5% less sellers in the luxury market in Q3 vs. Q2, (Q2 showed a 3% decrease vs.Q1). Although inventory levels are still high, the trend indicates that there will be a further  decrease in availability of luxury homes for the rest of 2010 and entering Q1 and Q2 of 2011. 

Transaction volume decreased 20% - Although there were 20% fewer transactions in Q3 vs. a highly active Q2, Q3 still outpaced Q1 of 2010 by over 10%.  This data is not uncommon as transaction volume in a strong second home market such as Miami is seasonal and traditionally data has shown that the summer months post slower sale numbers. 

Upcoming season/Q4 showing strong signs –All trends and figures are pointing to the real estate season of November 2010 to April 2011 outpacing previous seasons. 

“The facts, figures and trends identified in our quarterly report has been strongly backed by our team on the ground”, states Christian Kawas, co-principal, SoBeLuxuryHomes.com.  “In the recent months, we have experienced a sharp increase in calls from out-of-towners booking our time for Q4 and requesting information, statistics and figures on the Miami market.  Most of the traffic and interest is currently coming from NY, Canada and Eastern Europe”.  

Data for Q3 2010

Source: Multiple Listing Service

About SoBeLuxuryHomes.com

Headed by Christian Kawas and Ivan Hernandez, SoBeLuxuryHomes.com is a division of Douglas Elliman Florida, one of South Florida’s leading full service real estate brokerage firms.  In addition to providing the latest news, properties and information on South Florida’s property market, SoBeLuxuryhomes.com produces a quarterly Miami Home Trends Luxury Market Report that includes the latest analysis, statistics and outlook on the Miami luxury real estate market.  For more information please visit www.sobeluxuryhomes.com or call Christian Kawas at 305 608 6681 and Ivan Hernandez at 305 490 0028.

For press inquiries or request for blog entries please contact Natalie Boden, Natalie@bodenpr.com, 305.639.6770.