“I’m thrilled to launch our new quarterly report, and there was no better time to do so than on the heels of the best year ever for Miami real estate. Market-wide in Miami Beach, sales reached one of their highest levels ever, inventory fell to a new low, and prices surged. A spike in buyer demand plus the strong economic recovery, still-low mortgage rates and favorable taxes continue to drive this market.
The Miami Coastal Mainland market has also been benefitting from a tidal wave of demand, boosted further by high prices and extremely low inventory by the beach. This quarter, as with all of 2021, interest was prompted by second home buyers, space upgrades and low taxes. Miami has always attracted well-heeled buyers and while we expect demand to remain strong in 2022, this incredible lack of inventory will continue to drive prices higher.”
– Pamela Liebman, President & CEO
Miami Beaches Highlights
This was the best year ever for the red-hot Miami Beach real estate market. Market-wide, sales reached one of their highest levels ever, inventory fell to a new low, and prices surged.
- During 4Q, condos/co-op sales rose 39% year-over-year to over 1,400 sales, one of the best quarters ever.
- Single-family closings fell 32% annually to fewer than 200 sales due to supply constraints.
- Both the single-family home and condo/co-op markets saw active listings fall to record lows.
- Average and median price figures rose across product types versus a year ago because of robust demand, record-low inventory, and the growing desirability of the Miami Beach market.
The Miami Beach condo/co-op market was incredibly active in the fourth quarter. The number and sales volume of closings were incredibly strong, inventory shrank to its lowest level, and pricing rose by double digits annually.
- Condo/co-op closings rose 39% annually to 1,412 sales. Sales declined 4% versus last quarter, a typical seasonal occurrence.
- Sales volume rose 74% to $1.544 billion, the most for any fourth quarter ever.
- About 25% of sales were over $1M, a 5% greater market share than last year.
- Average price jumped 25% annually to $1.094M, the best fourth quarter average ever. The highest priced sale in 4Q 2021 was a Fisher Island penthouse for a record $40M.
- Discounts were tight at -4.3%, 2.5% shallower than a year ago.
Miami Beach single-family homes remain highly coveted, as evidenced by record-high prices and ultra-low inventory. Due to limited supply, sales fell by double-digits to their lowest level since 2Q 2020.
- Versus a year ago, single-family sales fell 32% due to limited inventory, as listings declined over 50%.
- Price figures reached their highest levels on record; year-over-year, average price increased 30% to $5.448M and median price rose 18% to $2.6M.
- The mansion at 8 Star Island Drive that sold for $75M shattered the previous $50M Miami Beach price record set in 2019.
- Average discounts fell to -5.2%, the tightest negotiability of any fourth quarter on record.
Miami Coastal Mainland
In 4Q 2021, overall sales improved year-over-year in the Miami Coastal Mainland, though trends varied by property type. Alongside fast absorption, prices rose, and inventory fell to decade lows.
- Condo/co-ops had a banner quarter by rising 49% to 1,782 closings, but single-family sales fell 19% annually.
- Both average and median condo/co-op and single-family home price metrics each climbed year-over-year to record or near-record highs.
- Amid strong demand, listed inventory fell by nearly 60% annually for both condo/co-op and single-family homes.
The condo/co-op market had a strong performance in 4Q 2021. Sales improved annually by double-digits while inventory declined by an even greater amount. Prices reached or remained near record-high levels.
- Condo/co-op sales skyrocketed nearly 50% annually to 1,782 closings.
- The average price of a condo/co-op was $651K, 5% higher than last quarter and 27% higher than last year, though figures were skewed by nine sales over $5M.
- Median price at $460K was a new record; the market share of closings over $750K rose 10% annually to about 25% of all closings, also an all-time high.
- Listed inventory fell by a staggering 55% year-over-year to 2,477 units, 15% below the previous all-time low set in 3Q 2021.
In 4Q 2021, closings fell by nearly 20%, as inventory was nearly a third of what it was a year ago, and prices soared to levels never seen before. The luxurious neighborhoods of Coconut Grove and Coral Gables made up the majority of sales this quarter.
- Single-family home sales fell 19% compared to last year amid dwindling inventory and higher prices.
- The amount of inventory as of the end of the year was nearly equivalent to the number of closings in 4Q 2021, suggesting about three months of supply in this market, an extremely low figure.
- Average price rose by its greatest annual percentage on record, up 46% year-over-year to $2.65M. Average price per square foot surpassed $700 for the first time in history.
- Nearly 10% of all single-family closings in the Miami Mainland Coastal market were over $5M.