Luxury residential real estate market thriving in Florida

Luxury residential real estate market thriving in Florida

In Florida, particularly Miami Beach, the luxury real estate market is flourishing. Those who purchase residential real estate here are considered to have the cream of the crop in the industry nationwide. This is based on research on the market for 2015's third quarter.

In the third quarter, luxury houses sold for about $6.3 million on average. This is nearly 12 times the average price of a regular home there, at $522,000. In other major markets throughout the United States, luxury houses sell for anywhere from five times to six times the price of a typical home.

South Florida constitutes almost 50 percent of the 20 markets in the United States with the largest disparity in prices between the top five percent of houses and the bottom 95 percent. This is due in part to the fact many people from out of town are entering South Florida to scoop up its homes. The people purchasing multi-million-dollar homes in South Florida are coming from states other than Florida or from other countries, while the individuals who live and work in the region full time make up the remainder of the real estate market. In Miami Beach, the median household income was just over $42,000 back in 2014.

With the luxury residential real estate market thriving in Florida, now may be an attractive time to pursue property ownership opportunities in the state. Navigating a real estate deal, however, can sometimes be tricky. Appropriate legal guidance may help people who are interested in buying homes to protect their best interests at all stages of the real estate transaction in the Sunshine State.

Source: Miami Herald, "The nation's most unequal housing market is Miami Beach", Nicholas Nehamas, Dec. 7, 2015