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Luxury Market Showing Strength in New York and Miami

In New York and Florida, sellers appear to be gaining an advantage in the marketplace.


According to data ""Manhattan Miami Real Estate"":http://manhattanmiami.com/, both states demonstrated significant pricing increases during the first quarter.

In Manhattan, per square-foot home prices rose by 8 percent in the luxury sector and condo prices were up by 9 percent for the year's opening quarter. Additionally, the company's statistics indicate that the city's inventory level stands at an estimated 9 months of supply.


Miami made pricing headlines as well, with residential prices in the luxury sector increasing by 13 percent on a per square-foot basis, as inventory levels descended to four month's supply. Breaking down the city's areas, the real estate group reported that South Beach pricing rose by 20 percent, Miami Beach pricing by 27 percent, and pricing in downtown was up by 19 percent.

Both cities racked up record-making, high-end sales for the first quarter, with a penthouse on Manhattan's Central Park West selling for $88 million. Meanwhile, Miami boasted a $20 million sale at St. Regis Bal Harbour and a $21.5 million sale at the Setai.

Though pricing was the primary focus of the company's recent study, their findings also showed a new emerging trend for down payments for foreign buyers in Miami. Using a practice that's common in Brazil, developers in Miami are now ""requiring 50 to 60 percent in progress payments"" on a two-year continuum with payment in full due at closing, versus the previous 10 percent down payment model for those buying pre-construction property.

Manhattan Miami Real Estate's Richard Mello explains, ""Declining inventory levels has caused multiple bids on certain properties. While multiple bids are not widespread, since many prime neighborhoods now have a shortage of inventory, bidding wars, a boom-era phenomenon, are on the rise.""

About Author: Abby Gregory


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