Miami’s Million-Dollar Cash Sales and Government Scrutiny by FinCEN
In January, I posted information regarding the upcoming government watchdog FinCEN’s new scrutiny on purchases over $1M which began March 1st. Many were concerned and called it a “killer” for Miami. As of February, Miami was the fourth highest City for cash sales noted in the United States.
Of all Miami-Dade’s home sales in February, 52.5 percent were made without financing, according to a newly released report from real estate research firm CoreLogic.
Side note: In the article listed above, CoreLogic focuses on the entire County (both Miami condos and homes) having 2,163 total sales with 1,122 of those being cash (52%).
As of the March 1st implementation, the U.S. Treasury Department Financial Crimes Enforcement Network (FinCEN) began watching for potential shady Miami investors buying properties priced over 1 million.
Question: What has happened since FinCEN began watching?
- JUN – 67 cash/90 total sales = 74.4%
- JUL – 53 cash/73 total sales = 72.6%
- AUG – 39 cash/57 total sales = 68.4%
- SEPT – 45 cash/53 total sales = 84.9%
- OCT – 42 cash/57 total sales = 73.6%
- NOV – 31 cash/45 total sales = 68.8%
- DEC – 45 cash/61 total sales = 73.7%
- JAN – 49 cash/57 total sales = 85.9%
- FEB – 49 cash/59 total sales = 83%
- MAR – 52 cash/68 total sales = 76.4%
- APR – 52 cash/75 total sales = 69.3%
- MAY (1st to 23rd) – 22 cash/27 total sales = 81.4%
Answer: Not much.
The areas above include Miami Beach, Fisher Island, Bay Harbour Islands, Bal Harbour, Surfside and Sunny Isles Beach. “Why just these six locations?” These six preferred destinations are where a typical Miami investor will come and spend million’s on their second, third, or fourth home. With these high percentages staying fairly consistent month after month, it doesn’t appear that watchful FinCEN eyes are deterring luxury property buyers in Miami.
(figures were derived from the South Florida MLXChange)
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