Uncertain Future for Miami’s Luxury Market?

As the result of a year-long housing market slowdown, Ron Shuffield, the CEO of EWM International in South Florida is urging luxury homeowners to drop their prices.

In a recent article in The Real Deal, he referred to October’s “perfect storm”, created by a bitter presidential race and Hurricane Matthew, resulting in Miami’s worst October for luxury home sales since 2011. Only 94 houses and condos priced above $1 million sold during the month, marking a drop-off of more than a third from the 145 sold in the same period of 2015.

Shuffield, whose brokerage has 10 offices in South Florida, said that while these forces may have been temporary, sellers should not expect buyers to flock back to the Miami market any time soon. The market is still contending with an inventory of 4,100 luxury homes listed for sale across Miami-Dade County.

A healthy luxury market can contend with up to eighteen months of supply, but he said “Miami is now grappling with nearly three years’ worth of inventory,” which means buyers are more inclined to sit on the sidelines and shop around for deals. “When you have inventory growing to that level and sales falling off, the major motivator to buyers is going to be an adjustment to price.”

In other South Florida news, Douglas Elliman just purchased a Delray Beach brokerage firm, bringing the company’s total offices to 19 as it expands along Florida’s coast. The firm bought Tauriello & Co. Real Estate, founded in 2000 by Sue Tauriello. Their 60 agents and office at 900 East Atlantic Avenue will become part of Douglas Elliman, said Jay Parker, CEO of Elliman’s Florida brokerage. He also revealed that they had been focusing on Delray Brach for some time. “Tauriello’s homegrown nature made the firm an attractive target in a growing market – known for its trendy restaurants, boutiques and nightlife – which has become an increasingly popular destination for Northeasterners.” With the acquisition of the firm, Douglas Elliman now has more than 900 agents in Florida.

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