Despite the housing market rebalancing toward a more normal one, wealthy areas in South Florida are still holding on to their high home values.
There are at least 15 cities in South Florida where the typical home is worth at least $1 million, of “millionaire cities” in the country, according to an analysis done by Zillow.
It makes South Florida one of the areas with the most millionaire cities in the country. “These areas have always been considered luxury, exclusive areas,” said Melissa Miller, CEO and team leader of the Melissa Miller Group at eXp Realty in Weston. “Wealthy buyers desire exclusivity on their property, a concealed oasis and a place to be free to relax and wind down in the utmost of secrecy.”
Here are the 15 “millionaire” cities in South Florida, according to Zillow:
- Golf: A village in Palm Beach County, not far from Boynton Beach, with a golf course, country club and homes, the typical home is worth $2.4 million.
- Gulf Stream: Located in Palm Beach County along A1A, a little north of Delray Beach, the typical home value in this town of less than 1,000 is $2.5 million.
- Jupiter Inlet Colony: Known for its beautiful parks and access to a private beach club, a typical home is worth $3.4 million.
- Manalapan: Situated in Palm Beach County, halfway between Delray Beach and Palm Beach, the typical home value in this small town bordered by water is $3.9 million.
- Ocean Ridge: A small coastal town, Ocean Ridge offers a safe option for families relocating with children. The typical home value is $1.457 million.
- Palm Beach: Known for its high-end estates and beaches, this town’s typical home value is around $1.8 million. It is also home to former President Trump’s Mar-a-lago.
- Sea Ranch Lakes: A small city in Broward County next to the Intracoastal, this area offers a private beach club for residents. It’s nestled next to Lauderdale-by-the-Sea. The typical home value here is $1.6 million.
- Southwest Ranches: Located in the far western parts of Broward County, Southwest Ranches offers plenty of land for affluent buyers to build larger, more exclusive compounds. The typical home value is $1.1 million.
- Bal Harbour: Located on the northern tip of Miami Beach, the Village of Bal Harbour offers access to fine dining and shopping at Bal Harbour Shops, as well as oceanfront resorts. A typical home here has a value of $1.6 million.
- Coral Gables: This established, affluent community offers access to dining, coffee shops and historic landmarks. The median sale price of a home here is $1.21 million.
- Fisher Island: Located in Miami-Dade County off the southern tip of Miami Beach, this exclusive area is only accessible by ferry. The typical home value is around $3.9 million.
- Golden Beach: Located in northeastern Miami-Dade County, the average value of a home in this exclusive, oceanfront community is $6.9 million.
- Key Biscayne: Offering a vacation vibe, Key Biscayne is known for its beaches and restaurant views. The typical home value is $1.49 million.
- Pinecrest: Offering a slightly less expensive option, this Miami-Dade suburban city offers access to well-known schools and nature. The typical value of a home is about $1.7 million.
- Surfside: A walkable beachfront community with family-friendly parks, the typical home value is a little over $1 million.
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Zillow defined a “millionaire” city as a city where the typical home in the area is worth $1 million or more. South Florida has lost one millionaire city, “Parkland,” since last June as housing values have readjusted as the market rebalances to a more normalized one, Zillow noted.
Overall, the United States has about 464 cities where the typical home is worth a $1 million or more. It’s a slight decrease from when the housing market hit its peak last July. At the peak, there were 522 “millionaire” cities.
“Sellers may have missed the market’s peak, but they can still get a higher price for their homes than last year in most markets, and certainly more than they would have before the pandemic. Getting the pricing right and boosting a home’s online curb appeal are keys to success for this spring’s sellers,” said Anushna Prakash, economic data analyst at Zillow.
While the pandemic housing boom has been waning, the South Florida luxury market is still holding steady, according to luxury real estate agents in the tri-county area.
“We still have a lot of demand for luxury properties, and we still don’t have enough supply,” said Alicia Cervera Lamadrid, Managing Partner of Cervera Real Estate. “Our foreign buyers see tremendous opportunity in the luxury market.”
There’s a few factors at play in South Florida’s luxury market: Sales have dropped when compared to a year ago, though home prices still remain high, according to an analysis by RedFin. And some economic uncertainty has some buyers on the sidelines deciding whether to wait out a purchase.
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In Fort Lauderdale, luxury sales plummeted 53.4% when compared to the prior year. However, prices still remained high. The median sale price of a luxury home was 16% higher than it was a year ago. There’s also less inventory on the market: Active listings were down 4.6% when compared to the prior year.
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It was similar in West Palm Beach, where sales of luxury homes dropped 51.6% when compared to the prior year. Prices have risen about 14%, and some inventory is heading back to the market: There was about a 19% increase in active listings when compared to last year.
And in Miami, sales have dropped about 68% when compared to a year ago. However, the median sale price has skyrocketed about 17%. And active listings have plummeted 13%.
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“There hasn’t been a slippage in the entire market. It’s been more selective,” noted Lamadrid. “Some people who have moved down during the pandemic now have to go back home, and they have to adjust their price and not hold out for the top of the market. We are seeing isolated incidents where buyers can see an opportunity based on specific situations.”
There is still room for growth as buyers begin to adjust to the current market, and South Florida continues to be a destination for out-of-state buyers, lured by beachy weather and no income taxes.
Miller notes that sales have started to tick up in February and March, a sign that more growth could be on the way in South Florida.
“There are some local buyers that are taking a pause due to the higher interest rates, but to many cash buyers from northern cities and overseas, South Florida is still the hottest deal in town,” Miller said. “We are moving into a more normal market.”