Douglas Elliman released three 4Q 2012 market reports for Boca Raton, Fort Lauderdale and Palm Beach. In all three markets, the reports show a trending of rising sales in recovering housing markets, upward pressure on prices, and faster absorption of properties. Record low mortgage rates contributed to rising demand in the markets.
Additionally, luxury markets outpaced the overall markets and a high demand in international sales was driven by global economic volatility. The pace of sales for older listings quickened, creating sales gains for the three marketplaces.
“We are seeing the most action in the luxury market in South Florida, a shift from the past few years, when the focus was on distressed sales,” said Vanessa Grout, CEO and President of Douglas Elliman’s Florida Brokerage. “Cash is being channeled into luxury property at an astounding rate; the primary drivers being foreign demand and low borrowing rates. A scarcity of well-designed units also lifted prices across the high-end market.”
“The last quarter of 2012 saw a slowly improving economy and this has translated to a recovering market,” said Jonathan Miller, President/CEO of Miller Samuel, who produced the report in conjunction with Douglas Elliman. “Overall price indicators showed sharp year-over-year gains, sales levels grew and marketing times fell sharply, reducing the negotiability between buyers and sellers. Rising sales is the most important barometer of market health and there have been increases across South Florida markets. We can expect to see more of the same in 2013.”