The luxury market in Miami has gotten off to a strong start this year as sales volume and prices for luxury homes have both increased.
Total luxury homes sales climbed by 12 percent in the first quarter of 2018, with 421 total sales so far this year compared to 375 at this point last year, according to the Miami Association of Realtors. Luxury homes are considered those selling for $1 million or more.
Single-family luxury homes sales are having a particularly good year, as sales of such homes jumped by 16 percent this year, the association reports. Luxury condos – which have seen a glut of inventory in recent years – saw sales numbers jump by 8 percent to start this year, with 206 sales this year compared to 190 at this point last year.
South Florida’s luxury market has seen a surge in interest recently because of new federal tax laws, which cap local and state tax deductions at $10,000. George C. Jalil, Miami Association of Realtors chairman, said people from high-tax states are looking at low-tax Florida to save money.
“Miami real estate continues to see major pent-up demand for luxury properties,” Jalil said in a statement. “Miami and Florida as a whole is attracting Americans leaving high-tax states such as New York as the new tax law cuts into their income-tax deductions.”
Despite new tax laws that could hurt wealthy homebuyers, luxury home sales have actually increased 8 percent across the country this year. The strongest luxury price growth in the first quarter was seen in Vero Beach, Florida with a 68 percent price increase since the previous year.