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NYC nears record levels, Miami rivals Palm Beach

Friday, July 1, 2022   /   by Dave Magua

NYC nears record levels, Miami rivals Palm Beach

The New York and Southern Florida luxury markets had a strong start to 2022, and despite some general market uncertainty real estate faces today, agents in these markets have reason to remain optimistic, according to a report released Tuesday by New York City-based brokerage SERHANT.

The 2022 Signature  Mid Year Luxury Report includes statistics, trends and highlights for the New York City, Hamptons and South Florida markets for 2022. It also features historic trends on luxury transactions priced at $10 million or higher, or “super-prime” properties.

Low inventory contributed to a dip in sales in Southern Florida markets, but still left sales well above historic levels in the region.

There were 48 sales of properties priced at $10 million or more in Palm Beach, down 27 percent year-over-year, but still 109 percent above the rolling 10-year average.

In Miami Beach, there were 110 such sales, down 33 percent from the same period in 2021, but 129 percent above the 10-year rolling average.

Prices were down in both markets, but Derderian chalked that up to the size of homes that sold, which were smaller compared to the previous year.

Case in point, the average price-per-square-foot in Palm Beach hit a record $3,580, up from $3,125 the year before.

Contract activity across the region was strong, with 41 super-prime contracts signed (pending deals) in Palm Beach during the first half of the year, up from 40 during the same period in 2021.

“I cannot understate just how strong demand continues to be for super-prime homes in Palm Beach,” Derderian said. “As the world’s wealthy flock to the market, prices have reached astronomical levels, although appreciation is beginning to slow.”

Miami inched closer to contract activity in Palm Beach with 83 contracts signed on super-prime properties (pending deals), down 37 percent from 2021 levels, however, amidst limited supply.

“The greater Miami area has seen a flurry of luxury activity, rivaling that of Palm Beach,” Derderian said. “Prices are likely to climb further as more firms relocate to the region. Just last week, Ken Griffin announced he is relocating his investment firm Citadel from Chicago to Miami, citing a more favorable business and tax environment. Of course, with Florida not imposing a state income tax on its residents, many high-income earners have opted to move to the region given the continued flexibility of remote or hybrid work.”