Florida Real Estate Analysis

The Florida luxury real estate market is one of the most sought-after markets in the United States, and for good reason. It offers high-end homes, exclusive communities, and beautiful beaches all at a price that's hard to beat. The state has seen an increase in demand for high-end homes, and the supply of these properties has been slow to grow. This has created a situation where many buyers are left with few options, which has led to higher prices. As a result of its proximity to both the Atlantic and Gulf of Mexico, Florida real estate tends to be some of the most expensive in the country. This is especially true when it comes to beachfront properties and homes with direct access to golf courses. With this in mind, there are several factors that should be considered when purchasing luxury real estate in Florida.

Home values are up more than 50% year-over-year from 2020 to 2021 and rents in Miami alone jumped 31% in the same time frame. The typical home value of homes in Florida is $500,000.  Most in demand are homes directly on the beach, where values have hit up to $4,000 per square-foot. There are still some challenges facing buyers who want to purchase luxury homes in Florida: Low inventory levels mean fewer homes available for sale at higher price points; this can lead to bidding wars between competing buyers or even sellers who refuse offers made at or below asking price because they feel their home is worth more than what was offered by buyers. The increase in luxury home sales can be attributed to higher prices for properties in this category. 

In addition to this, there are more buyers looking for a luxury home than there were previously. This is because of the rising income levels among those living in Florida. Another thing to note about the current state of luxury real estate in Florida is that buyers are becoming more selective. The number of properties available for sale has dropped significantly since the beginning of 2022, which means that buyers are now able to carefully consider which properties they want to purchase. This has caused a drop in sales volume, but it also means that there are fewer properties available on the market and more opportunities for sellers to get a higher price for their home. As we move into 2023, we expect this trend to continue until we reach a point where buyers have as many homes as they need or want. At this point, we expect prices will begin increasing again until they reach a new equilibrium point.

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