Luxury Property in Miami and Coral Gables: Can Sellers Look to London for Hope?

posted on February 9th, 2010 filed under: Real Estate News

Prices for luxury real estate in Miami and Coral Gables have been weakening, as stubborn sellers decide to get on with their lives and hit buyers’ bids.  The logjam of oversupply is breaking, and the result is lower prices.

But there’s been a remarkable rebound in one of the other markets that boomed in the mid-’00s:  London, England.  According to Bloomberg, luxury-home prices in London rose 12 straight months through December 2009, up 1.1% for the month alone and 11.5% from a year earlier.  Prices are still down from their peak, but only by 12%.  Brokers attributed the strength to an excess of buyers and a shortage of sellers.

Assets worldwide boomed in correlation, then busted in correlation.  But Miami and Coral Gables are not sharing London’s luxury-property pricing bounce yet.  Why?

It’s not as if London was the first to fall and first to recover.  For the market as a whole, real estate prices began falling in London in 2007 — about the same time as in Miami.

Maybe Miami never deserved to be taken so seriously in the first place.  London is a prime destination for international wealth — #2 on one top 10 list.  Miami and Coral Gables simply do not share that prestige.

Property values in Miami and London seem to have decoupled.

Source:

Peter Woodfield, London Luxury-Home Prices Increase Most Since 2008

Bloomberg.com, Feb. 03, 2009

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posted by // This entry was posted on Tuesday, February 9th, 2010 at 11:54 am and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed.

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