Miami Beaches & Coastal Mainland Market Report: 2Q 2023

“While second-quarter sales in the Miami Beaches declined compared to the strength of last year’s market, quarter-over-quarter increases for every product type show the signs of a market beginning to normalize. As inventory continues to expand, much-needed supply is available, meaning buyers now have a variety of choices if they act fast.

Similarly in Miami’s Coastal Mainland, closings and sales volume declined annually, but the market rebounded quarter-over-quarter by over 25% for both closings and closed sales volume. Any economic concerns that slowed the pace of sales in 1Q look to be less of a concern and eager buyers should take advantage of current pricing — average listing discounts deepened year-over-year for both single-family and condo/co-op/townhouse sales.”

– Pamela Liebman, Corcoran’s President & CEO

Miami Beaches Highlights

In 2Q 2023, closings in the Miami Beaches declined by nearly half compared to last year’s very robust number of sales.

  • Coupled with the reduction in closings this quarter, sales volume also dropped by double digits year-over-year for all product types.
  • Meanwhile, average price fell annually for both single family homes and condos/co-ops/townhouses, although the drop was much more significant for single family sales.
  • Inventory spiked across the board as the overall market continued to cool from the torrid pace seen in the past few years.

The number and dollar volume of closed sales in the Miami Beaches market fell significantly versus a very strong 2Q 2022, however with 912 closed sales, the condo/co-op/townhouse market increased quarter-over-quarter by 8%, showing signs of a market segment beginning to normalize.

  • Average days on market fell 3%, as strategically priced residences transacted at a consistent pace.
  • Average price per square foot fell slightly by 1% year-over-year
  • Listed inventory expanded year-over-year to 2,682, up 12%, as supply continued to be replenished versus a year ago.
  • Median price increased slightly by 2% compared to the previous year and remained level versus last quarter.

Miami Beaches single-family closed sales and closed sales volume fell by 46% and 63%, respectively. However, on a quarterly basis, sales increased by 25%, and volume rose 13% versus 1Q 2023.

  • Inventory increased versus last year and for the third consecutive quarter, up 8%, providing much needed supply to the market.
  • Despite declining year-over-year, median sale price increased by 9% versus 1Q 2023 due to a 10% increase in market share of transactions between $3M and $10M.
  • Inventory increased by 8% versus 2Q 2022 but fell compared to last quarter.

Miami Coastal Mainland

The Miami Coastal Mainland market saw closed sales and sales volume decline versus 2Q 2022. However, after a slower start to the year, the market rebounded quarter-over-quarter by over 25% for both closings and closed sales volume.

  • Average listing discounts deepened year-over-year for both single-family and condo/co-op/townhouse sales.
  • Pricing metrics varied by product type year-over-year; average and median prices rose slightly for the condo/co-op/townhouse market while both statistics fell for single-family homes.

Condo/co-op/townhouse sales in Miami’s Coastal Mainland area dropped by 41% year-over-year (to 1,118 sales). Despite the annual decline, the total number of closings rose 28% compared to 1Q 2023.

  • Similar to last quarter, in conjunction with fewer transactions, sales volume fell sharply by 40% YOY.
  • Inventory remained similar to last year, up to 2,400 as of the end of June, but fell 10% versus last quarter.
  • Average price per square foot increased annually by 3% to $629, a record high for the product type in the Mainland submarket.

Both single-family home sales and sales volume dropped year-over-year compared to a robust 2Q 2022. However, the decline in demand did not result in an increase in overall supply as inventory also fell by 4% annually.

  • Closed sales fell 7% annually to 181 but rose 30% quarter-over-quarter. Despite inventory constraints, it was the second consecutive quarter that closed sales expanded by over 25%.
  • Marketing timelines increased drastically by 54% annually, to 130 days on average, due to a larger market share of listings staying on the market for over six months compared to this time last year.
  • Both median and average prices fell year-over-year by 6% and 15%, respectively.
  • Average price per square foot fell by 4% versus last year but rose by 9% quarter-over-quarter to return to the highest figure since 3Q 2022.

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