Luxury home sales in the world’s top real estate markets were a mixed bag in the second quarter of this year.
Sales of homes priced at $10 million or more doubled in New York, and fell by half in Miami, according to a global report by Knight Frank. That flips the script on Miami’s post-pandemic market, where luxury sales have closed at record levels since the wealth migration started in 2020.
Dubai and New York led luxury markets globally, according to the report. Dubai saw 143 sales with $2.6 billion in dollar volume; and New York closed 120 deals with $2.9 billion in dollar volume. Los Angeles followed with 73 luxury sales with $1.6 billion in dollar volume.
For New York, second quarter sales amounted to a 97 percent increase in deal volume, year-over-year, compared to 61 deals in the same period of last year. Dollar volume surged by 184 percent, from $1 billion in the second quarter of last year. The report credited New York’s thriving market to demand for trophy condos and luxury townhouse resales. Foreign buyers have also been fueling New York City’s market this year.
South Florida’s numbers weren’t as sunny. In Miami, deals priced at over $10 million fell 52 percent, year-over-year, from 52 to 25. Dollar volume dropped a similar 53 percent, from $1 billion to $495 million. In Palm Beach, the decline was less extreme. Sales decreased 18 percent, from 39 to 32 deals. Dollar volume also tumbled 18 percent, from $725 million to $594 million, the report shows.
In South Florida, brokers have pointed to market uncertainty and the president’s tariff policies for the stumble.
“Liberation Day and trade wars aren’t what we had on our bingo card,” Nathan Zeder, part of Coldwell Banker’s Jills Zeder Group, told The Real Deal last month.
New safety regulations and rising insurance costs have also disrupted the condo market, and certain economic warning lights are blinking yellow.
