According to a recent report from Sunny Realty, the Miami area has experienced the largest boost in sales activity in five years. The largest contributing factor to this rise in activity is the number of foreign buyers flooding to the area, predominantly from European countries and Brazil.

“The 2011 trend shows that we are heading toward a healthier Miami real estate market. The strength of this market is something that hasn’t been seen in years, showing promise for a strong third and fourth quarter finish,� stated Leon Bell of Miami’s Sunny Realty.

When evaluating reports on the state of the Miami real estate market, it is essential to consider specific segments of the data collection relative to the types of properties listed, those selling, those in distress and who the buyers are. For example, at first glance at recent pricing reports, one would conclude that the median sales price for Miami properties had dropped. June reports show the median pricing of single-family homes in Miami dropping slightly, 2.8%, from second quarter close. One contributing factor to this slight price decrease is the number of distressed property sales in the area.

Many real estate professionals, including those of Sunny Realty, suggest that we are nearing the bottom of the distressed inventory, as many property owners have addressed these issues over the past several years. What we will be left with moving forward are the more desirable properties, positioned well to sell. In fact, as the number of distressed properties has been drastically reduced in recent months, the number of properties currently in inventory has also dropped, helping prices to hold their own, despite the perception of a slow market.

While this tells the tale of the median home market, an entirely different story is painted when you consider the state of the Miami luxury real estate market.

When you isolate luxury properties in the same area boasting average pricing in excess of $1 million, up nearly 5% from second quarter, a different story is painted of the market. Leading the market are luxury properties, predominantly of interest to foreign buyers (nearly 80% of sales), although domestic buyers are also looking to the area for vacation properties offered at competitive prices. Within the Miami area, homes in Miami Beach are showing the most promise, case in point with the recent $19.8 million sale of the Maurice-Fatio designed property on Sunset Island.

As the number of high end Miami homes sold increases over the past month, the number of high end properties hitting the available inventory has not. This trend suggests that the market is tightening. It is possible that the Miami real estate market will bear price increases as we head into the year’s end.

Palm Island real estate

is known for being among the most luxurious in the Miami-Dade area. This is a gated, private island community that still has convenient access to all the amenities this world-class city has to offer. While the real estate market tumbled off a cliff in 2008, many feared that any significant recovery would be years, or longer, away. Today, the performance of Palm Island home sales, and the resurgence of the southern Florida market, has begun in earnest already.

The prices for Palm island homes for sale

exhibit how exclusive this community is. Recently, a property sold for just under $12 million (click here to see all recently sold Palm Island houses). This is an area defined by luxury estates, vast properties and elegant homes. The amenities on Palm Island make it ideally suited for very affluent and celebrity clientele. All of the luxuries one would expect are provided, including private docks, but the privacy of the community ensures that all residents can enjoy those amenities without having to worry about security or other concerns.

Southern Florida, in the minds of many people, embodied the nature of the real estate crash. The market was booming loud enough to be heard around the world in the early 2000s and, in fact, the area boasts many affluent residents from other nations. The crash in 2008 made many people afraid that they’d overpaid for their properties, but that concern is quickly being proven to be an illusion. On Palm Island, real estate is climbing in price again, just as is real estate in neighboring areas such as South Beach. Some properties are currently being expanded upon, making it obvious that even the most successful individuals in the world are keen on the fact that things are looking brighter in the Florida real estate market.

There are homes on Palm Island

listed for as much as $20,000,000. While this may seem an ambitious sale for anyone in a market that’s so often described as dismal, it may also indicate that movement in the market is starting to increase and that sellers know full well that there’s someone out there who wants exactly what they have to offer. With real estate on Palm Island, it’s imperative that a good Palm Island realtor represents it. Without a good realtor, the right market will not be reached and the sale price may well prove less impressive than it should in this market.