Prices for luxury homes in Miami Beach have exploded since last year, far outpacing other luxury markets in the U.S.
Miami Beach saw a 66 percent increase in prices, with an average cost of $8.3 million per sale. This growth was driven by foreign buyers looking to retain their wealth in U.S. real estate, according to the Redfin research center.
Los Angeles was second on the list for the priciest luxury homes with an average of $4.8 million per sale, followed closely by San Francisco with $4.66 million. Miami Beach’s growth was three times greater than both cities combined.
Fort Lauderdale’s luxury prices fell 5 percent last year to $2.35 million.
Redfin defines luxury homes as the top 5 percent of the market’s price bracket. Miami Beach’s lower 95 percent also saw significant growth at 25 percent.
Delray Beach was among the list of cities where luxury was outpaced by lower priced homes. With an average sale price of $1.79 million, the city’s luxury market dropped 18 percent from last year. The remaining market grew 12 percent.
The Redfin report states Miami Beach will likely be the tip of the iceberg and predicts that other coastal and inland cities popular with foreign buyers will experience similar booms.