The luxury South Florida real estate markets in the oceanfront enclaves of Miami and Palm Beach are fresh from a healthy third quarter as wealthy out-of-state buyers capitalize on the low-taxed market, according to reports Friday from the Miami Association of Realtors.
The number of luxury property sales—defined as those sold for more than $1 million—across the two counties surged almost across the board.
In Palm Beach County, luxury single-family home deals increased 13.9% year-over-year and high-end condo sales followed right behind, up 12.5% in the same time frame.
Further down the coast in Miami-Dade County, luxury single-family home transactions increased 11.8% annually in the third quarter.
Existing luxury condos in Miami were the anomaly, with sales growth failing to hit double digits and rising just 2.7% in the same time.
“Interest from high earners in tax-burdened states and declining mortgage rates continue to drive demand in the South Florida real estate market,” José María Serrano, the association’s chairman, said in the report.
Federal tax reform enacted last year essentially eliminated state and local tax deductions for higher-income earners, effectively raising the cost of living and owning a home in high-tax states such as New York, New Jersey, Connecticut and California.
Florida, meanwhile, has notoriously low state, local and property taxes.
Along with rising levels of sales, prices have been on the up, too.
West Palm Beach’s luxury market ranked top nationwide for price growth in the third quarter, according to another report Thursday from Redfin.
The city saw its luxury values rise 128.3% annually, leaving the new average at more than $3.7 million, Mansion Global previously reported.