Savills plc

11/25/2021 | Press release | Distributed by Public on 11/25/2021 04:47

Postcard from Miami

Palm trees, beaches and working from home - it's little wonder Miami's property market is breaking records and proving an irresistible draw for domestic and international house-hunters.

Before the pandemic, Florida was the United States' largest market for overseas buyers, accounting for 20 per cent of the total. California ranked second at 16 per cent, followed by Texas, Arizona, New Jersey and New York.

Despite the worldwide Covid crisis, existing home sales increased dramatically across the board, with double-digit growth in both the condo and house market, heavily weighted towards high-end properties.

The pandemic has only accelerated the market's progression with a series of decisive factors: record low interest rates, a record high S&P 500, the appeal of stable assets in a volatile economy, homebuyers leaving tax-burdened northeastern states to purchase in Florida, and work-from-home and remote-learning policies.

A surge of domestic and foreign buyers is purchasing primary homes in Miami, led by big-spending home buyers who are propelling the area's real estate market. In addition, multiple tech investors and billionaire financial services companies are moving to South Florida, including New York's Goldman Sachs and California's Blumberg Capital, converting the Miami to West Palm Beach corridor into a southern hub for finance and investing. This will have monumental implications for the area's development.

Strong demand coupled with limited supply continues to drive price appreciation and break home sales records in Miami, which will surpass its best year ever for total sales next month. Total home sales surged 20.2 per cent year over year in September 2021, from 2,521 sales to 3,031. Miami single-family home transactions decreased 3.6 per cent, from 1,288 to 1,241 because of lack of inventory. Miami existing condo sales increased 45.2 per cent, from 1,233 to 1,790.

With the lifting of the travel ban on 30+ countries for vaccinated visitors - easing restrictions that prevented most foreign real estate buyers from entering the US to view and buy - wealthy interest from overseas is expected to descend on the city's luxury housing market, giving a second boost to demand for high value apartments and mansions.

Contact Rory McMullen

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