“High prices met high mortgage rates in the Miami Beaches market as demand moderated compared to last year. Unable to sustain the incredible demand of the past two years, the condo market saw closed sales and dollar volume fall for a sixth consecutive quarter. That said, single-family home sales remain a bright spot as activity reverted to normal levels.
Impacts of current market challenges were more noticeable in the Coastal Mainland as the number and volume of closings declined year-over-year by greater percentages than seen in the Miami Beaches. On the plus side, condo inventory continues to expand, giving fast-acting buyers a variety of choices in this coveted market.”
– Pamela Liebman, Corcoran’s President & CEO
Miami Beaches Highlights
In the third quarter, Miami Beach demand moderated versus a year ago as high prices met high mortgage rates.
- The number of sales fell annually for the sixth consecutive quarter, however an increase in closings over $10 million propelled the first yearly increase in dollar volume since 2021.
- Average and median price rose along with inventory, which alongside cooling sales drove days on market and discounts higher versus a year ago.
Unable to sustain the incredible levels of demand seen in 2021 and 2022, closed sales and dollar volume for condos, co-ops, and townhouses fell by double-digits annually for a sixth consecutive quarter.
- After being depleted post-pandemic, supply is now being replenished as demand slows and some owners seek to cash out now that price appreciation is moderating. This pushed inventory up 7% annually.
- Closings fell 15% annually to 784 sales, the lowest third quarter figure since 3Q 2020.
- Median price rose year-over-year for the fourth consecutive quarter, up 6% versus 3Q 2022.
Single-family sales in the Miami Beaches fell by their smallest amount in two years, down 3% annually as activity reverted to more normalized levels.
- Sales declined by 3% annually to 84 total closings in Third Quarter 2023, similar to 2019 levels.
- That said, a robust number of ultra-luxury deals led to a 62% annual increase in sales volume, the greatest percentage increase since 2021.
- Median price increased by 14% year-over-year as the market share of sales over $2M climbed.
- Average price and price per square foot spiked by over 30% due to multiple closings over $20M this quarter.
Miami Coastal Mainland
The Miami Coastal Mainland market felt the impacts of market challenges more than the beaches market.
- The number and volume of closings declined year-over-year by greater percentages than the Miami Beaches market.
- For the second quarter in a row, pricing metrics varied by product type.
- Average and median prices rose for the condo/co-op/townhouse market.
- Price figures fell for single-family homes as smaller and less luxurious homes traded this quarter.
On an annual basis, Miami Coastal Mainland condo/co-op/townhouse sales dropped by 18% while sales volume fell 8%. This was the sixth consecutive quarter with an annual decline in closings.
- Alongside the slowdown in demand, inventory rose 20% to more than 2,600 listings.
- Median price, average price, and average price per square foot all increased thanks to higher prices and an increased market share of two- and three-bedroom closings.
- With a weaker market compared to a year ago, negotiability and marketing timelines both expanded annually.
Both single-family sales and transaction volume declined by double-digits annually.
- Closed sales fell 17% year-over-year to just over 100, the second-lowest figure since before the pandemic.
- Unlike the other submarkets, however, inventory fell by 16% compared to last year.
- Both median and average price fell year-over-year by 7% and 28%, respectively, as the number and market share of sales over $5M eased versus historically high levels a year ago.
- Median price dropped by 7% annually, as there were fewer sales over $5M in Third Quarter 2023.