Florida Luxury Real Estate Feeling the Heat

One of the most toxic states in the United States housing meltdown may finally be showing some cracks, Florida and its surprisingly healthy market for oceanfront mansions and palatial condos. Billionaire Donald Trump recently dropped the price on a Palm Beach mansion by 20 per cent, and some say the U.S. housing woes have finally touched the wealthy. Reports said that many luxury properties are still selling briskly, thanks to Europeans and Canadians pouring their strong currencies into Florida.

A real estate analyst with Goodkin Consulting in Miami, Jack Winston said that “There’s just not that much enthusiasm or activity in the luxury market.” High-end real estate was the only thing propping up the condo market in Miami, one of the most overbuilt and overpriced in the U.S. brokers said that is after local real estate have reached its peak 2 years ago. While price declines of 25 per cent or more were seen elsewhere in the state amid the mortgage crisis, soaring property taxes and hurricane-insurance woes, the median price of Miami condos gained 6 per cent last year. The median price fell 10 per cent, the Miami condo market finally had a bad month in December.

Chad Roffers , SKY Sotheby’s president said that “The high end is resilient,” and added “Certainly the market has corrected since the peak of 2005. What we are seeing is that quality waterfront inventory is holding value.” He said he wasn’t really overly worried. Bargain hunters had an open field, but many properties were pulled when no one bid.

Jron Magcale
http://cervera.com

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