The Miami real estate is nearing meltdown, hitting the most expensive areas the hardest.
According to real estate experts, the combination of luxury condominium buildings under construction and the weaker demand from buyers overseas was the reason behind falling prices and sales in Miami real estate market.
During the first quarter, sales and prices of Miami real estate in Miami Beach, where highest-profile properties are located, fell significantly. At the same time, inventory increased by roughly 30 percent compared with 2015's first quarter, according to a feature from the Miami New Times.
Miller Samuel Real Estate Appraisers & Consultants and Douglas Elliman released a report indicating that the average sale price of properties in Miami Beach and Barrier Islands fell 7.5 percent to $905,252. The median sale price, on the other hand, fell to $408,750 (6.6 percent).
Miller Samuel President and CEO Jonathan Miller said, "The high end is softer than the broader market right now."
True enough, the Miami market did slightly better. The average sale price in Miami's coastal mainland market rose 2.7 percent to $404,020 and the median sale price to $260,000, a 7.4 percent increase from last year. However, sales still declined about 17.5 percent to 3,853 while inventory increased by 15 percent.
The average sale price of condos in the Bal Harbour, a hyper-exclusive community, fell 38 percent to 1.02 million and number of sales decreased 32 percent, to 30.
Families and retirees are finding better value farther up the coast, according to a feature from the CNBC. Miller stated that markets in Boca Raton, Palm Beach and Fort Lauderdale tend to be less dependent on overseas buyers.
The average sale price of properties in Boca Raton increased to 12 percent while number of sales jumped 21 percent.
Miller said that Boca is the leader of the current major markets in southern Florida. He also said that the high end market is performing as well as the broader market, contrary to the current state of the Miami real estate.
