Florida’s luxury residential real estate market has been breaking records with properties selling for never-before-seen prices. However, the overall slowdown in sales has resulted in more price cuts and longer closing times.

Miami Beach is one city where price reductions or discounts are becoming more prevalent, with nearly all $5 million-and-up sales trading at a discount off the asking price. The slowdown in home sales has created a divide between older homes in need of repairs and new or renovated properties, with new constructions selling at a premium.

Despite the slowdown, perception still plays a significant role in sales. The owners who have reacted slowly to the changing market are still hesitant to sell unless they receive what they consider “an astronomical amount of money.”

(source: therealdeal.com, picture: erica carr)