Douglas Elliman Releases Q1 2017 Market Reports, Shows Continued Strong Growth Across South Florida

Douglas Elliman has released their Q1 2017 South Florida Market Reports for Miami Mainland, Miami Beach, Boca Raton, Fort Lauderdale, Palm Beach, Wellington, Delray, and Jupiter/Palm Beach Gardens. The data was compiled in partnership with Miller Samuel, who is a leading independent appraisal firm. Reports reflect price and sales trends along with current market conditions and emerging market trends. The data through Q1 2017 reflects the continued strong growth of South Florida real estate as it continues to be a destination from flight capital from both northern states and International buyers.

MIAMI BEACH/BARRIER ISLANDS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price slipped 5.8% to $385,000
- Average sales price jumped 10.4% to $999,241
- Number of sales rose 0.6% to 815
- Days on market was 143, up from 97
- Listing discount was 12.1%, up from 8.8%
- Listing inventory increased 6.4% to 6,166

LUXURY CONDO
- Median sales price increased 14.2% to $3,025,000
- Days on market was 207, up from 119
- Listing discount was 13.1%, up from 10.1%
- Listing inventory increased 11.8% to 1,188 units
- Entry threshold began at $1,600,000

LUXURY SINGLE FAMILY
- Median sales price surged 56.5% to $11,425,000
- Days on market was 261, down from 352
- Listing discount was 20.4%, up from 12.8%
- Listing inventory fell 14.5% to 165 units
- Entry threshold began at $6,250,000

5446 North Bay Road, Miami Beach. Listed for $29 Million by Brett Harris of Douglas Elliman.

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MIAMI COASTAL MAINLAND HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price increased 12.5% to $292,500
- Average sales price rose 0.3% to $405,266
- Number of sales fell 2.7% to 3,487
- Days on market was 81 up from 76
- Listing discount was 5.6%, unchanged
- Listing inventory fell 19.9% to 10,186 units

LUXURY CONDO
- Median sales price fell 27.5% to $785,000
- Days on market was 154 days, up from 110
- Listing discount was 7.8%, down from 8.4%
- Listing inventory slipped 8% to 2,535
- Entry threshold began at $520,000

LUXURY SINGLE FAMILY
- Median sales price declined 12.8% to $1,200,000
- Days on market was 138 days up from 113
- Listing discount was 7.7%, up from 7%
- Listing inventory declined 15.9% to 924 units
- Entry threshold began at $825,000

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FORT LAUDERDALE HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price increased 5.1% to $1,112,500
- Days on market was 48, up from 45
- Listing discount was 6.8%, down from 4.3%
- Listing inventory increased 6.2% to 344
- Entry threshold began at $785,000

LUXURY SINGLE FAMILY
- Median sales price increased 13.3% to $1,950,000
- Days on market was 189, up from 150
- Listing discount was 11.2%, down from 13.6%
- Listing inventory increased 3.8% to 359 units
- Entry threshold began at $1,200,000

5446 North Bay Road, Miami Beach. Listed for $29 Million by Brett Harris of Douglas Elliman.

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BOCA RATON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price slipped 3.7% to $780,000
- Days on market was 73 days, up from 101 days
- Listing discount was 7.3%, down from 7.5%
- Listing inventory increased 27.6% to 305
- Entry threshold began at $485,000

LUXURY SINGLE FAMILY
- Median sales price jumped 18.4% to $2,365,000
- Days on market was 162 days, down from 165
- Listing discount was 9.5%, up from 15%
- Listing inventory jumped 39.2% to 565
- Entry threshold began at $1,272,500

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DELRAY BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 12% to $1,399,000
- Days on market was 100, down from 136
- Listing discount was 7%, down from 13.5%
- Entry threshold began at $1,125,000

LUXURY CONDO
- Median sales price jumped 19.6% to $580,000
- Days on market was 103, up from 78
- Listing discount was 5.1%, down from 5.7%
- Entry threshold began at $400,000

Grand Opening of the Douglas Elliman Delray Beach Office

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WELLINGTON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 33.3% to $1,000,000
- Days on market was 146, down from 160
- Listing discount was 15.5%, up from 12.2%
- Listing inventory increased 13.4% to 271
- Entry threshold began at $625,000

LUXURY CONDO
- Median sales price declined 28.1% to $345,000
- Days on market was 132, up from 99
- Listing discount was 5.5%, down from 6.1%
- Listing inventory declined 22% to 46
- Entry threshold began at $330,000

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PALM BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO AND SINGLE FAMILY
- Median sales price dropped 29.1% to $7,475,000
- Days on market was 239, up from 74
- Listing discount was 13.2%, up from 14.4%
- Listing inventory surged 38.7% to 86
- Entry threshold began at $5,400,000

Hammock House at 3503 Banyan Circle, Coconut Grove Listed for $5.95 Million with Michael Light and Rafael Montejo of Douglas Elliman.

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JUPITER / PALM BEACH GARDENS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
JUPITER SINGLE FAMILY
- Median sales price declined 5.9% to $447,000
- Days on market was 73, up from 74
- Listing discount was 5.1%, up from 6.1%
- Listing inventory increased 4.2% to 499

JUPITER CONDO
- Median sales price increased 17.7% to $282,500
- Days on market was 210, up from 201
- Listing discount was 5%, down from 5.7%
- Listing inventory increased 81.7% to 318

PALM BEACH GARDENS SINGLE FAMILY
- Median sales price increased 16% to $479,000
- Days on market was 91, up from 79
- Listing discount was 6.6%, up from 6.4%

PALM BEACH GARDENS CONDO
- Median sales price increased 4.3% to $220,000
- Days on market was 59, down from 60
- Listing discount was 5%, down from 5.3%

About Douglas Elliman:

Douglas Elliman was established in 1911 and has grown to become the largest regional and the nation's fourth largest real estate company. Douglas Elliman has a current network of more than 6,000 agents in over 80 offices throughout Manhattan, Brooklyn, Queens, Long Island (including the Hamptons and North Fork), Westchester and Putnam Counties, as well as South Florida, California, Connecticut, Colorado and New Jersey. In addition, through a strategic partnership with Knight Frank Residential, Douglas Elliman's powerful network extends to 488 offices in 59 countries. Read our PROFILE Exclusive Interview with Douglas Elliman CEO, Florida Brokerage Jay Parker. 

Hammock House at 3503 Banyan Circle, Coconut Grove Listed for $5.95 Million with Michael Light and Rafael Montejo of Douglas Elliman.

Cash Sales in Miami Continue to Decline Through 2017

All cash sales in the Miami real estate market continue to decline through 2017, after reaching highs in 2014. The Miami Association of Realtors reported a 20% drop year-over-year for January 2017 cash home sales, with a mere 232 deals completed in cash. This is compared to the June 2014 peak with over 600 all cash deals completed during the period. The highest percentage of cash deals came following the last Miami real estate crash in Q1 2013, with cash sales hovering around 50% for all real estate transactions during the period. This all comes at a period where international investment has been slowing down, the U.S. dollar is strengthening against foreign currency and U.S. home prices continue to rise. This should give a leg up to cash investors looking to get a deal as sellers do not always like to take the risk on a buyer closing on their mortgage. It also points to the market beginning to hit a state of equilibrium as lenders become more comfortable issuing loans in the market and limited foreclosures and REO's available to investors. 

Miami Top Major U.S. City in 2016 For International Immigration

The Miami Metropolitan area was the top major U.S. city market in 2016 for international immigration. The year-over-year growth for the area was 1.1%. Miami is also reportedly the number one U.S. city for foreign born working professionals and those holding college degrees. This influx of immigration has helped bring equilibrium to a market that many thought may have been overdeveloped. This has led to rising housing prices, rising rents, low vacancy rates and rising record employment numbers. 

Miami-Dade County/ Miami Metropolitan Area Sets New Record For Employment

In January 2017, Miami set a new record high for employment as the population continue to rapidly rise. The Miami Metropolitan Area increased by 64,670 people in 12 months, split evenly between Miami-Dade, Broward and Palm Beach Counties. according to new census data. The study was ran from July 1, 2015 through July 1, 2016. The Miami Labor Force, according to the US Bureau of Labor Statistics was 1,360,727 in January 2017, up from 1,333,962 in January 2016. January 2017 also showed 1,291,079 of the 1,360,727 were employed. The total labor force for the Miami Metropolitan Area in January 2017 was 3,100,186. The job sector is led by finance, education and health services, and leisure and hospitality. 

Miami Downtown Development Authority Study Concludes It Will Be "Unprecedented" to Find a Downtown Condo for Under $750,000 in 2025

A study by the Miami Downtown Development Authority concluded that it will be "unprecedented" to be able to find a condo in Downtown Miami for under $750,000 in 2025. The study found that the market reached an equilibrium in 2016, with new construction and supply matching an increasing demand for Downtown Miami. Although the Miami condo market has seen a softening and has entered into being in a state of being a "buyer's market," prices have remained somewhat stable and can even hint at trailing up in certain areas. That said, the resale market regressed 7%, seeing a drop after five years of gains above 10%. In Downtown, 2,202 condos were delivered in 2016, another 3,456 condos in 2017, 2,846 in 2018 and 1,960 in 2019.

Russia Top Country Searching For Miami Real Estate Since Trump Election

According to reports, Russia is now the top country searching for Miami real estate since the election of Donald Trump. According to the Miami Association of Realtors®, data shows that Russians have been searching for real estate in Miami once again with Knight Frank reporting a 35% increase in Russian interest in buying luxury properties. The jump in demand stems from expectations of relations improving between the United States and Russia with the new Trump administration. Sunny Isles Beach has a large Russian population, which is reflected in the culture that encompasses the neighborhood. According to the same report, Canadians spent the most on South Florida real estate in 2016 amongst international buyers and 81% o their deals were all cash. 

Top-10 countries Searching Miami Real Estate

1. Russia
2. Colombia
3. Venezuela
4. Argentina
5. Canada
6. Brazil
7. India
8. Philippines
9. Spain
10. United Kingdom

Miami Ranks 9th in Top Ten 1-Bedroom and 2-Bedroom Median Rent Prices Nationally

Miami ranks 9th nationally according to a Zumper report when it comes to median rental prices for 1-bedroom and 2-bedroom units at $1,800 /mo. and $2,500 /mo. respectively. Month to month, Miami saw no change in median pricing, down 2.2% year-over-year for 1-bedrooms and 3.8% year-over-year for 2-bedrooms. San Francisco leads the list at $3,720 /mo. for 1-bedroom units and 4,500 /mo. for 2-bedroom units, followed by New York, Boston and San Jose. Fort Lauderdale ranked 13th with the median rent for 1-bedroom units at $1,500 /mo. and 2-bedrooms at $1,900 /mo. 

Miami Rated 2nd Best Buyer's Market in U.S. According to Zillow Report

Miami has been rated the 2nd Best Home Buyer's Market in U.S. according to a report by Zillow. Zillow reported that 11.5% of active listings have suffered a price cut and homes in the region have averaged 108 day on market. To put that in comparison, the Top Seller's Market per the same report is San Francisco, which has an average days on market of 51. San Francisco is followed by San Jose, Seattle, Denver and Portland as the top Seller's Markets in the U.S. The Top Buyer's Market according to the same report is Baltimore, followed by Miami, Philadelphia, Chicago and Houston. When breaking down Miami by neighborhood:

Best 5 Miami Neighborhoods to be Buyer:

1. Lauderdale by the Sea - 18.7% of Listings Price Cut - 141 Average Days on Market
2. Hallandale - 15.6% of Listings Price Cut - 175 Days on Market
3. North Bay Village - 13.8% of Listing Price Cut - 179 Days on Market
4. Aventura - 13.8% of Listing Price Cut - 177 Days on Market
5. Miami Shores - 15% of Listings Price Cut - 134 Days on Market

Best 5 Miami Neighborhoods to be Seller:

1. South Miami Heights - 6.3% Listings Price Cut - 94 Days on Market
2. The Crossings - 8.6% of Listings Price Cut - 86 Days on Market
3. Kendall Lakes - 6.4% Listings Price Cut - 95 Days on Market
4. Margate - 9% of Listings Price Cut - 88 Days on Market
5. Fountainbleau - 6.3% Listings Price Cut - 98 Days on Market

Trump, Feds Renew ID Requirement Regulations for South Florida homebuyers

The Treasury Department announced Thursday that it would be extending its requirement that Title Insurance companies disclose the identities of luxury homebuyers in Broward and Palm Beach counties by six months through July. The regulations affect cash home sales in excess of $1 million in Miami-Dade, Broward and Palm Beach counties. These requirements were set after it was announced that 30% of transactions in Palm Beach, Broward County, Miami-Dade, New York City, San Antonio and parts of California involved a suspicious buyer or suspicious activity. ID Requirement regulations are in affect in all of those counties through July as the fed continues their crackdown on money laundering in the real estate sector. Many of the deals covered by the regulation involved shell companies. It was hoped that a Trump Presidency would ease some of the regulations placed by the Obama administration, but brokers have yet to see a drop in sales attributable to the ID Requirement regulations. 

Brickell City Centre's Rise & Reach Sales Updates

Swire has announced their quarterly earnings, in them their Brickell City Centre sales update reflecting that 353 contracts have been signed at Brickell City Centre's residential building Reach and another 185 contracts in their other residential building Rise. Of that, 175 of Rise's units have closed. These numbers reflect weaker quarterly sales of just 4 units in Reach and 11 units in Rise during the time period. Both Reach and Rise have 390 units each with units in reach starting slightly cheaper starting at $595K as the lowest currently listed 1 bedroom resale. Closings in Reach began in April 2016 and closings in Rise began in September 2016. Swire did not provide any update on the second phase of the Brickell City Centre project, One Brickell City Centre.