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Looking for a Luxury Home? So is Everyone Else in Miami

by James McClister

If all roads lead to home recovery, then it’s pretty clear that not all American’s are taking the same path.

In 2013, heavy investor interest began driving up the number of homes sold throughout the country. Listings priced high to low were selling like hot cakes.

According to a report from Redfin, sales of the priciest homes – meaning properties in the top one percent – grew by more than 35 percent, while sales of the other 99 percent still made out with an increase of 10.1 percent.

This year, however, things have begun to slow down – at least for most of us. Redfin confirms that home sales in the bottom 99 percent since January have dipped by a national average of 7.6 percent. Though a select number of major metro areas have experienced slight increases in the bottom 99 percent of home sales, the majority of growth remains in the top one percent where sales are up 21.1 percent.

Luxury Buyers Set Their Sights on Miami

Miami had a pretty good 2013. From one end of the price spectrum to the next, home sales were on the rise. Sales of the priciest homes, designated by their $2.9 million and above price tag, were up 26 percent and the other 99 percent were up seven percent.

Moving into the new year, home sales in many areas, urban and rural alike, began dipping. Investor interest had hit its peak and high prices were and really still are keeping families from making too many big financial commitments, but Miami has managed to keep itself in a bit of a bubble.

Redfin’s research shows that while growth of home sales priced in the bottom 99 percent aren’t as promising as they were in 2013, sales still are up by one percent. The real story, however, is Miami’s luxury market. Since January, the city’s top priced homes have been selling as quickly as they’re listed – many out of the South Beach neighborhood. Redfin recorded the sales growth at a staggering 56.1 percent.

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