As the Miami housing market continues to gain momentum, a new report suggests that the recovery is being led by activity in the luxury property market.
After the market collapse, Miami experienced a high rate of foreclosure and dismal home sales. However, a recent trend of multimillion-dollar transactions is a promising sign of things to come, according to a report from CNBC.
"Miami is hot and it’s not just the weather!" Miami Association of Realtors chairman Jack Levin told the news source.
In fact, real estate data shows that in 2011, the sales rate of million-dollar condominiums in Miami was up 20 percent from its previous peak in 2006. In addition, the recent listing of Casa Casuarina - formerly known as the Versace Mansion - for $125 million, has the market buzzing.
However, skeptics warn that this trend could only be temporary, CNBC said. Currently, luxury home sales in Miami are being driven by international buyers. Concerns over the European debt crisis or a sudden slow in other markets abroad could bring this rising sales rate to a screeching halt.