Inside The South Florida Real Estate Market | ForbesAugust 10, 2018
The maturation of South Florida’s communities, from every perspective, has come at a time where several other variables are contributing to the stabilization and traction in our luxury residential markets. As a seasoned real estate professional in the South Florida market with over twenty years spent both running one of the largest title insurance companies and now at the helm of a real estate brokerage, I have seen firsthand the market’s transformation. Looking back its like watching a video of a flower bloom in fast-foward.
We have seen quality rise to meet the sophisticated and discerning demands of domestic immigrants, making the move to South Florida that much more enticing. This quarter has presented numerous real estate transactions across South Florida in the $10 million range. Until recently, reportedly the highest-paid residential real estate deal for Miami-Dade county in the past 12 months closed at $26 million. Our latest Star Island sale closed at $33 million, breaking this record.
There is no doubt that several of the changes enacted by the Tax Cuts and Jobs Act have stimulated the high-net-worth buyers in states with higher state and local taxes. The elimination of the deduction for state and local taxes (SALT) and the cap on deduction for mortgage interest are just a couple of the changes that are driving the movement. I have observed a sharp increase in both interest in and consummated transactions on South Florida properties by buyers from New York, Connecticut, California and other states. And since the beginning of 2018, we have seen consistent and meaningful strength in the sale and marketing of properties at the top of the market.
It’s clear that the those who can make the move to South Florida are actively considering the same, and those who are still constricted by life circumstances — be it children in schools, parents in close proximity or the understanding that many projects are mid-construction and won’t be completed for many months — are looking to the near future in the hopes of a primary residence in the Sunshine State.
In addition to the new tax plan, Florida has historically been at the top of the list for retirees and empty nesters. With a large percentage of the U.S. population in or entering those stages of life, Florida is naturally on the radar for relocation. However, today, this class of buyers is welcomed by a plethora of home details that our market has never offered before, from balconies as deep as 35 feet, to curved glass with windows that fully stack to provide a true indoor/outdoor environment, to world-renowned “starchitect”-crafted masterpieces that adorn our cities’ skylines and offer floor plans carefully calculated to maximize living space and functionality.
Long gone are the days of a basic gym, card room and a vacant room to be used for multiple purposes. Today’s development sophistication is complemented by highly curated amenities designed to enhance the owner’s lifestyle in material ways. Art studios with 24-hour daylight, children’s playrooms, movie/entertainment theaters and fully functioning dining halls with restaurant-grade kitchens complete many development projects throughout South Florida today.
Buyers of South Florida real estate tend to group South Florida into one market. The truth could not be further from that assumption. In fact, a component of our mission in Florida is to help our clients learn more about what each submarket has to offer. Buyers should secure knowledgeable insight into the characteristics of each area; schools, entertainment, walkability, culture, pricing variances and transportation concerns are some of the variables that require careful attention and thought.
Taking all of the above into consideration, the local real estate market continues to offer extraordinary value and, in my view, a strong investment proposition. Most South Florida markets remain at a significant discount to other major metropolitan markets domestically and globally. As I’ve heard around the country in many meaningful circles, people are “having the conversation” about moving to Florida, and many have already made the move.
Make no mistake, the South Florida real estate market is excited to welcome newcomers and deliver a lifestyle worth pursuing.
Article credit Forbes