SOUTH FLORIDA’S LUXURY BUYERS
South Florida has been a second home destination dating back to the early 1900’s, when James Deering built his famous Vizcaya Estate in Coconut Grove. Since then, not much has changed. Every year, the area is flooded with those looking to escape the cold and enjoy the luxury lifestyle South Florida has to offer.
Even with the trials and tribulations of 2020, the market still remains extremely active. “There are more buyers in the $10M range than ever. It’s extremely competitive and we’re seeing record breaking sales,” says Chad Carroll of The Carroll Group, who joined Compass in July. The team boasts $2B in career sales, rank among the top 100 agents nationally, and serve all of South Florida.
In a highly competitive luxury market, current inventory tells an interesting story on what homeowners are looking for in a coastal escape. Zerohedge reports a surplus of condos, with about 600 luxury units on the market asking an average of $2.05M, with only 26 sales pending.
The opposite is true for single family homes above $10M, however, where inventory simply can’t keep up with heightened demand. The buyer demographic has changed during quarantine as well, with domestic buyers from the Northeast replacing typical activity from international buyers.
In the midst of the COVID-19 pandemic, the South Florida lifestyle appears to be a significant driver of high demand in the luxury space. “Today’s luxury buyer is looking for more space and privacy – we’ve seen them gravitating toward single family homes,” says Chad Carroll.
“People are valuing time with family and enjoying being outdoors and on the water more than ever. We’re seeing people utilizing Florida’s advantages. You wake up every day and it’s sunny 90% of the time. Health is a huge part of the culture here and fitness is more important than ever.”
Things are showing no signs of slowing down as The Carroll Group expects a busy season. While some things have changed, one thing that remains true – South Florida is a hot spot for those looking for a true luxury lifestyle.