The latest numbers on the Miami mansion market show it is getting frothy and probably will continue to be so through at least next year.
The median sales price in Miami rose to $240,000 in the third quarter, a 23 percent gain from the the year-earlier period, according to a report from Douglas Elliman and appraisal firm Miller Samuel. The number of sales rose 20 percent, while inventory fell 8 percent. The absorption rate, or the rate at which homes are sold, declined by 24 percent, the report said.
Mansions and ultraluxury condos are especially hot. Looking at the top 10 percent of sales, the median price for a condo is now $1.2 million, and sales are up 19 percent. The median price for single-family luxury homes jumped 16 percent, to $1.5 million.
(Read more: Hottest ZIP codes for megahome sales)
Sound like a bubble? Perhaps. Especially when you consider that a large number of Miami buyers in recent years came from Brazil and other Latin American countries no longer creating as much wealth or affluent real-estate buyers.