“The Miami Beaches housing market had a slow start to the year, with sales continuing the steady decline that closed out 2022. With annual gains in inventory, buyers now have a variety of choices in a very coveted market. The key for sellers is to focus on pricing — smartly priced condos/co-ops are selling swiftly.
For buyers looking at the Coastal Mainland, inventory and listing discounts are on the rise for single-family homes. The economic concerns from last quarter are still a cloud looming over the market but prospective buyers should take advantage of current pricing — both median and average prices are down close to 10% over last year.”
– Pamela Liebman, President & CEO
Miami Beaches Highlights
In 1Q 2023, closings in Miami Beach declined by half compared to last year’s extremely robust level of sales.
- Fewer sales this quarter moved sales volume lower by over 40% annually for both condo/co-op/townhouse and single-family residences.
- Inventory remained flat versus 4Q 2022 but rose annually by double-digits for each product type.
- Pricing factors increased across-the-board YOY thanks to movement in the market share of sales, with a greater percentage above $5M combined with a reduced percentage of sales below $1M.
Closed sales and sales volume in the Miami Beaches each fell significantly compared to 1Q 2022.
- Even with the lower number of sales, average days on market fell 13% annually, well-priced residences continued to sell at a swift pace.
- Average price per square foot increased 7% year-over-year and has risen consecutively since 2021.
- Listed inventory jumped compared to last year to 2,780 properties as of the end of March, providing much needed supply to the market.
YOY single-family home sales and closed sales volume fell by 51% and 44%, respectively.
- For the second consecutive quarter, inventory rose by double-digits, up 33% annually (378 total), its second highest figure since 1Q 2021.
- In connection with lower buyer demand, listing discounts deepened by over 5% year-over-year and average days on market rose 32% versus last year.
Miami Coastal Mainland
The Miami Coastal Mainland market saw a significant annual drop in both closed sales activity and sales volume compared to a very strong 1Q 2022.
- In 1Q 2023, the market was hindered by macroeconomic headwinds, which included rising mortgage rates, inflation, and unstable financial markets, leading to diminished sales and a significant rise in inventory. Additionally, average listing discounts for both product types increased year-over-year.
- Pricing metrics were mixed by product type — pricing rose for the condo/co-op/townhouse market while single-family pricing statistics varied.
Condo/co-op/townhouse sales in the Miami Coastal Mainland area dropped 54% YOY. Similarly, due to fewer transactions, sales volume fell sharply by 49% versus last year.
- Inventory rose by 33% annually, and 5% versus last quarter, to nearly 2,700 listings as of the end of March.
- Both pricing metrics increased annually, with median price rose to its second highest figure in over a decade.
- Negotiability favored buyers as average discounts grew by over 2% off of last ask annually; the most significant discounts were mainly for larger three+ bedroom homes.
Single-family sales in the Miami Coastal Mainland market declined by 38% versus last year’s high number of closings. In addition, sales volume also fell by over $270M annually.
- The drop in demand resulted in a spike in inventory this quarter as listings rose by over 50% year-over-year.
- Days on market increased 6% annually to 123 days on average (up 6 days annually).
- Median and average prices fell by 9% and 8%, respectively compared to 1Q 2022 due to a reduction in the market share of sales above $5M YOY.
- Listing discounts continued to favor buyers as negotiability averaged -6.2% in 1Q 2023 which was nearly 5% deeper than a year ago.