“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.

©2022 Corcoran Group LLC. All rights reserved. Corcoran and the Corcoran logos are trademarks of Corcoran Group LLC. The Corcoran® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Real Estate Inc. and franchised offices which are independently owned and operated. The Corcoran System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Listing information is deemed reliable, but is not guaranteed.