“For Miami’s housing market, 2022 came in like a lion and went out like a lamb. Sales activity in Miami Beach’s fourth quarter continued to decline versus last year’s record highs largely due to rising interest rates and recession fears.
In Miami’s Coastal Mainland, for the first time since the pandemic, we’re seeing equilibrium between buyers and sellers. Sales are down compared to a strong 2021 and this drop is translating into something we haven’t experienced in South Florida for a while — increased inventory — which is rising by double digits in certain areas.”
– Pamela Liebman, President & CEO
Miami Beaches Highlights
In 4Q 2022, sales activity in Miami Beach continued to decline versus last year’s record high figures due to rising interest rates, stock market unpredictability, and overall recession concerns.
- Overall closed sales fell 48% annually.
- Inventory constraints remained in the condo/co-op/townhouse market while buyers began to see an uptick in single-family homes hitting the market.
- Median price increased for both product types — condo/co-op/townhouse rose 2% year-over-year while single-family median sale price climbed by nearly 50% due to multiple high-end closings above $25M.
For the third consecutive quarter, condo/co-op/townhouse listed inventory rose by double-digits but was still below the same time period last year.
- Closed sales declined by 45% YOY and sales volume dropped sharply compared to a record-setting 2021.
- Median and average price were essentially level with last year while days on market fell by 21% YOY, further demonstrating continued buyer interest in the submarket.
The Miami Beach single-family home market saw closings decline by 67% YOY.
- Since there were less than half the number of transactions this quarter versus a year ago, closed sales volume fell sharply by 64% YOY to $328M.
- Inventory rose by double-digits versus last year, reaching its highest figure since before the pandemic.
- Pricing metrics increased annually due to rising prices and the decline in the market share of sales under $3M.
Miami Coastal Mainland
The Miami Coastal Mainland market experienced a steep decline in overall closed sales, down 54%, compared to a record high in 2021.
- In 4Q 2022, the lower number of closings hindered sales volume, which dropped 41% overall versus last year.
- Inventory spiked by double-digits to 2,869 total listings as of the end of December.
- Days on market fell annually by 16% — to 113 — on average while discounts deepened versus last year and quarter.
Condo/co-op/townhouse sales in the Miami Coastal Mainland area declined by 53%, compared to a strong 2021.
- As the market continued to cool, inventory increased by 2% annually and 15% quarter-over-quarter.
- Condo/co-op/townhouse closings fell 53% YOY, to 844, compared to a record-breaking 2021.
- Average price rose 25% annually, to $812K, the highest fourth quarter figure on record (while pricing was skewed higher by the $23.5M penthouse sale at One Thousand Museum.
The Miami Coastal Mainland single-family market displayed a sizable drop in closed sales and volume, each down over 50% year-over-year.
- The decline in demand translated into an annual rise in inventory of over 46%.
- Closed sales fell 60% annually, to 103, the lowest quarterly total since 2020.
- Average price increased 2% to $2.7M, owed to multiple eight-figure sales located in Coconut Grove and Coral Gables.
- Median sale price fell 5% year-over-year due to a significant 50% decline in the market share of sales under $1M.