The luxury real estate is slated to make a comeback in 2020. In 2019, homebuyers who could afford high-end, luxury properties chose to “wait it out.” In other words, with such drastic economic uncertainties around the globe, they chose not to spend millions of dollars on luxury real estate that may lose, rather than gain, value. However, as we begin 2020, the U.S. economy has never been better and buyers are expected to start spending again.
The city of Paris is already forecasted to show a 7 percent luxury price increase, with Miami and Berlin not far behind. The state of Florida has no income tax. This makes it an attractive market to wealthy home buyers. In addition, within the tax overhaul of the Trump administration, all federal deductions on state and local taxes were capped. This means that living in a state where neither exists is ideal. It is projected that high-end buyers moving in from out of state will drive high-end, luxury real estate prices in Miami up by 5 percent. Many of those buyers are relocating from states such as New York and New Jersey who carry high taxes.
In 2020, demand is high and supply is short. Realtors are actively recruiting new luxury listings, and they are selling almost as quickly as they are placed on the market. It is a decade high for the ratio of buyers to sellers. Consumers are gaining confidence in our economy once again and the wealthy are ready to spend. 2020 is poised to be a major comeback for the Florida real estate market.
An experienced real estate attorney is vital to the smooth execution of any luxury real estate transaction. Where millions of dollars are at stake, there is nothing more important than having an expert make sure all protections are in place and all bases have been covered.