Three of the five hottest luxury markets in the U.S. are in Greater Miami, including the country’s top market in Delray Beach. But as far as the city itself goes, a new Redfin analysis confirms that things are not going so well.
In Delray Beach (No. 1), Boca Raton (No. 2) and Hollywood (No. 4), average luxury sale prices during this year’s third quarter jumped more than 25 percent year over year. Miami proper, meanwhile, ranked as the No. 4 worst luxury market nationwide, with prices falling 9.7 percent.
Alex Garcia, a Redfin agent working in Palm Beach County, attributed the luxury price boom in Delray and Boca to waterfront development (which is mostly built out in Miami proper), and the reurbanization of downtown areas.
“We are seeing builders tearing down older homes on waterfront and water-accessible properties and rebuilding with all the bells and whistles of a modern property,” he said. “Luxury buyers in Delray and Boca are drawn to single-family homes with water access, but also proximity to revitalized downtown areas with trendy restaurants and shopping. While vacation homes make up some of our luxury market, we also have a lot of affluent buyers who live here as a primary residence.”
As the below table shows, altogether five Greater Miami markets made Redfin’s top 10.
Top Markets
| City | Average Sale Price (top 5%) | YoY Change | Average Sale Price (bottom 95%) | YoY Change |
|---|---|---|---|---|
| Delray Beach, Fla. | $2,980,000 | 70.40% | $254,000 | 21.50% |
| Boca Raton, Fla. | $2,595,000 | 37.70% | $338,000 | 13.40% |
| Boston, Mass. | $4,124,000 | 33.80% | $669,000 | 15.50% |
| Hollywood, Fla | $1,209,000 | 27.10% | $246,000 | 6.00% |
| Seattle, Wash. | $2,121,000 | 24.80% | $592,000 | 13.20% |
| San Francisco, Calif. | $4,880,000 | 22.10% | $1,190,000 | 1.10% |
| West Palm Beach, Fla. | $1,321,000 | 21.80% | $196,000 | 9.50% |
| Tampa, Fla. | $1,173,000 | 18.80% | $225,000 | 15.40% |
| Scottsdale, Ariz. | $2,044,000 | 18.00% | $419,000 | 0.70% |
| St. Petersburg, Fla. | $1,126,000 | 16.30% | $197,000 | 13.90% |
Bottom Markets
| City | Average Sale Price (top 5%) | YoY Change | Average Sale Price (bottom 95%) | YoY Change |
|---|---|---|---|---|
| Sarasota, Fla. | $1,557,000 | 20.10% | $278,000 | 6.90% |
| Sandy Springs, Ga. | $1,690,000 | -12.30% | $394,000 | 1.80% |
| Alpharetta, Ga. | $1,054,000 | -11.70% | $365,000 | 1.70% |
| Miami, Fla. | $1,404,000 | -9.70% | $282,000 | 8.00% |
| Fremont, Calif. | $1,844,000 | -8.40% | $852,000 | 1.30% |
| Houston, Texas | $1,381,000 | -3.20% | $248,000 | 2.90% |
| Oakland, Calif. | $1,920,000 | -2.30% | $683,000 | 9.80% |
| Chicago, Ill. | $1,535,000 | -2.00% | $297,000 | 1.70% |
| Atlanta, Ga. | $1,533,000 | -1.20% | $296,000 | 3.10% |
| San Diego, Calif. | $2,367,000 | -1.00% | $561,000 | 7.90% |