“Following a strong start to 2022, the third quarter saw this supply-constrained market being thwarted by extremely low inventory, and on the demand side by rising interest rates and recession fears. Buyers continue to move quickly to acquire their piece of Miami Beach and as a result, days on market dropped by double digits.
And as interest in Miami’s Coastal Mainland shows zero signs of slowing down, average and median price figures increased annually. With more buyers looking inland, available inventory is being affected here as well, with numbers down by nearly one-third annually and 5% quarterly.”
– Ryan Schleis, Senior Vice President of Research and Analytics
Miami Beaches Highlights
In 3Q 2022, the Miami Beaches market was hindered both on the supply side, by extremely low inventory, and on the demand side by rising interest rates, stock market volatility, and recession fears.
- Overall closed sales declined nearly 40% annually from a record-setting 2021.
- Pricing metrics were mixed by product type as condo/co-op median price fell 3% year-over-year, while single-family median sale price rose 4% annually.
Condo/co-op inventory was down by over one-third year-over-year but rebounded slightly from the historic low level seen last quarter.
- Closed sales and volume each dropped by over 30%, compared to a very strong 2021.
- Though median price figures declined, the number of condo/co-op sales over $1M increased by 16% annually in the Miami Beaches as luxury-seeking buyers continued to transact.
- Negotiability and days on market once again favored sellers in the face of limited supply.
Single family home sales in the Miami Beaches declined by double-digits annually while inventory dipped on both a quarterly and annual basis, and average sale price fell YOY.
- Sales $10M+ (23 transactions) fell 82% compared to the same quarter last year, when ten of these closings exceeded $20M.
- Median price increased as the market share of $1M to $5M sales rose year-over-year.
Miami Coastal Mainland
The Miami Coastal Mainland market saw closed sales decline by double-digits from a record setting 2021.
- In 3Q 2022, the market — down by nearly one-third annually and 5% quarterly — was impeded by macroeconomic conditions as well as extremely low inventory.
- Across the board, average and median price figures increased annually thanks to high-end single-family home sales in Coconut Grove and Coral Gables, as well as luxury condo sales in Downtown Miami, Brickell, and Coconut Grove.
Condo/co-op sales in the Miami Coastal Mainland area declined by nearly half compared to a year ago. Despite the annual drop in closings, this quarter was still well above pre-pandemic levels.
- As inventory declined by 32% annually and 8% quarterly, price per square foot increased significantly.
- Average and median price both increased by double-digits YOY as demand rose for larger residences, likely influenced by conditions such as full-time relocation and live-work lifestyle needs driving a need for more space.
- Negotiability also declined, thanks to supply constraints and shorter marketing timelines.
The Miami Coastal Mainland single-family market experienced a significant drop in closed sales activity following a record high in 2021.
- On the other hand, 2022 was a record setting year thanks to the nearly $107M sale in Coconut Grove that shattered previous records for the highest priced single-family home sale in all of Miami-Dade County. As a result, pricing metrics jumped annually.
- Closed sales fell 74% annually to 130, a record low third quarter, amid inventory constraints. This quarter was the second lowest inventory level for any third quarter on record.