(ZeroHedge) Luxury homes in South Florida have been selling like hot cakes – mostly because mansion taxes and the capping of SALT deductions have pushed many from Mid-Atlantic and Northeast states to the tax-friendly environment of Florida.
“I’ve been selling real estate for 34 years,” said real estate broker Rob Thomson, a Mar-a-Lago club member and the owner of Waterfront Properties & Club Communities, who spoke with Bloomberg. “This is the longest bull run of my career.”
He said mansions, small homes, and empty lots have been in high demand, thanks to the state’s income tax rate of 0%, along with the region’s vast amount of wealth.
Thomson said while the Miami Metropolitan Area, from Miami to West Palm Beach/Palm Beach, is booming – there’s a section of residential real estate — within a ½ mile of President Trump’s Mar-a-Lago Club that has gone cold.
Ten homes remain unsold within a four-block radius of Mar-a-Lago have been sitting on the market for an extended period.
One of the properties is located at 1090 South Ocean Blvd. has been listed since 2016; with a listing price of $6.95 million, according to Zillow, down 26.5% from an initial $9.5 million. Four other listings have been sitting on the market since 2018; seven have already seen significant reductions in price.
“The fact that they’re all being marketed at the same time, nearby, is not natural,” said Jonathan Miller, the CEO of Miller Samuel. “A cluster of listings, especially at the high end, is not likely to reflect a positive condition” in the market.