South Florida’s condo markets posted strong gains in the second quarter as single-family home sales continue recovering, according to the second quarter Elliman reports released on Thursday.
Fort Lauderdale’s condo market, in particular, showed significant improvement. Condo sales jumped 32.4 percent to 805 closings in the second quarter, while single-family home sales fell 10.2 percent to 531. The median sale price for a condo was $386,000, surging nearly 35 percent, and the median price of a single-family home was $395,000, an increase of about 16.5 percent.
In Miami Beach, residential sales increased 10.7 percent year-over-year to 1,025 closings, with condo sales accounting for the majority of that increase, up 12.4 percent to 915 sales. Similar to most South Florida markets, the median price rose in Miami Beach to $438,000, up 7 percent from the previous year.
Condo sales, which includes townhouses, also grew in Palm Beach, rising 26.1 percent to 116 closings. Home sales dropped to 44, down 6.4 percent year-over-year.
“What was most apparent from the study is that just in general, conditions are noticeably better than last year, but we’re still not out of the woods,” said Miller Samuel CEO Jonathan Miller, who authored the reports.
The number of days a listing was on market generally increased in South Florida, which Miller said can be attributed in part to older inventory selling or being taken off the market, including “excess supply that really isn’t on the market to be sold.”
On the Miami mainland, residential properties spent about 86 days on the market, up about 9 percent from the previous year. Residential sales were nearly flat, down less than 1 percent to 4,191. Again, the condo market outperformed the single-family home market. Condo sales in Miami increased 3.6 percent to 2,059, and home sales fell about 4 percent to 2,132.
Brokers and developers say the changes in the tax law have led to a surge in high-end buyers relocating to South Florida. The Tax Cuts and Jobs Act, passed in December, limits the ability of taxpayers to deduct state and local taxes (SALT) from their federal taxable income, potentially driving them to no-income tax states like Florida.
Jay Parker, CEO of Douglas Elliman Florida, said he’s also hearing from more companies that are looking to relocate to South Florida. In the meantime, high-priced properties are leading sales, he said. The reports define luxury as the upper 10 percent of the market.
“Luxury is across the board moving the needle,” Parker said.
In Miami Beach, luxury condo sales rose 13.4 percent to 93, for example, while luxury home sales stayed flat at 12 sales. In Fort Lauderdale, luxury condo sales increased 19.1 percent to 81, and luxury single-family home sales also remained flat at 56.
Miller said it’s “too soon to call it,” but that it seems apparent that Southeast Florida is benefitting from the tax law.
Original Content The Real Deal