In 2013 the amount of real estate that is being sold is truly record breaking in Miami-Dade and Broward Counties. Prices are up in every sector of the market, and most especially in the luxury condominium and luxury home markets. The inventory is so incredibly tight that homes that are priced correctly are receiving multiple offers as soon as they are listed or even before if it is a pocket listing. One thing that observers are remarking on is the continued demand. With nearly 160 new projects in developments and international cash buyers ready to put large cash down payments on pre construction condo developments, there is little doubt that this market is still on fire.
Celebrities are even taking advantage of the sellers market. Billy Joel sold his home last week for just under $14 million on La Gorce Island, and this week Rosie O’Donnell sold her Star Island Mansion for just under $13 million. Billy Joel will likely break even on the purchase after brokers fees are paid, however O’Donnell will nearly double the money made on the property, since she bought the property in 1999 for $6.75 million and sold it for $12.65 million. While the home was listed last year for $19.5 million, and was reduced, she was advised correctly to sell. Matt Damon also sold his home on North Bay road at an advantage. At the very least this indicates the market is back to 2006 conditions, if not approaching another level, reaching the top echelon of investor.
Celebrities are selling, not to leave Miami per se, but because it would be fiscally irresponsible not to. The property values are sky rocketing, and taxes will likely be raised, especially for non-homesteaded waterfront home owners. So who is buying all this incredibly expensive real estate? The answer is billionaires. Alex Rodriguez sold his home on North Bay Road to a group of the Saudi Royal Family, and Billy Joel sold his home to the largest share holder of Saks Fifth Avenue and the owner of Tod’s Shoes. So not only are the celebrities and big name athletes selling their homes, they are making profits, and making way for a newer and vastly more wealthy crowd. This real estate market is most certainly the market to watch, and if you are looking to take part in it, contact us today.