In numerous cities, single-family home sales have surpassed condo sales, even in cases where condo sales remained stagnant or saw a slight decline. According to Jonathan Miller of Miller Samuel, the author of Elliman’s reports, inventory has increased year-over-year in most top markets, although it remains notably lower than pre-pandemic levels.
“Despite emerging from the pandemic era, the real estate market continues to grapple with a significant inventory shortage,” remarked Miller.
The persistence of elevated mortgage rates has continued to hinder sales, making the third quarter resemble previous quarters, as Miller noted. “Sales continue to exhibit a more downward trend than upward, and inventory still faces a scarcity. The only noteworthy change is that we are further removed from the pandemic and the related distortions. The pause in interest rates by the Federal Reserve will be beneficial in the long run, but I don’t anticipate rates remaining flat or falling for the next couple of quarters,” he added.
It is important to note that the reports do not encompass off-market transactions unless they were officially entered into the Multiple Listing Service (MLS). Here’s a detailed breakdown of the market conditions:
Miami Coastal Mainland In the third quarter, residential sales in the coastal mainland areas of Miami, including Greater Downtown Miami, Coconut Grove, Palmetto Bay, and other neighborhoods, experienced an 11 percent year-over-year decline, totaling 3,458 closings. Single-family home sales decreased by about 5 percent to nearly 1,600 closings, while condo sales dropped by 16 percent to 1,861 sales.
The median sale price for single-family homes increased by 10 percent year-over-year to $668,000, and for condos, it grew by 8 percent to $440,000. While inventory for single-family houses decreased by 17 percent to 1,839 listings by the end of the third quarter, there was an increase in condo inventory, which rose by nearly 9 percent to 3,319 active listings.
Miami Beach and the Barrier Islands On the barrier islands of Miami Beach, Bal Harbour, Bay Harbor Islands, Fisher Island, Golden Beach, Indian Creek, Key Biscayne, North Bay Village, Sunny Isles Beach, and Surfside, residential sales in the quarter saw a 13 percent annual decline, totaling 904 closings. Single-family home sales remained flat at 92 closings, whereas condo sales dropped by 14 percent to 812 sales.
The median sale price for single-family homes rose by 7 percent to $3 million, while for condos, it grew by 4.5 percent to nearly $540,000. Inventory of single-family homes increased by 14 percent to 349 listings, while condo inventory rose by about 10 percent to 2,477 listings.
Fort Lauderdale Once again, single-family home sales outperformed condo sales in Fort Lauderdale. The city witnessed approximately 1 percent year-over-year growth in single-family home sales, with 439 homes sold, while condo sales fell by 21 percent to 449 closings.
The median price of houses increased slightly, by about 1 percent, reaching $550,000, while the median price of condos declined by 8 percent to $445,000. Single-family inventory decreased slightly, by less than 1 percent, to 624 listings, while condo inventory surged by 47 percent to 825 listings.
Palm Beach Palm Beach recorded double-digit annual declines in MLS sales, with single-family home sales dropping by 31 percent to 11 closings and condo sales plummeting by over 50 percent to 23 closings.
The median sale price for single-family homes skyrocketed by 54 percent to $14.4 million, while for condos, it dropped by 37 percent to $1 million. Inventory of single-family homes increased by 51 percent to 53 listings by the end of the third quarter, and condo inventory grew by 4 percent to 112 listings.
West Palm Beach In West Palm Beach, both condo and single-family home sales remained relatively stable year-over-year, marking a positive development for a market that had previously witnessed double-digit declines.
Around 350 single-family home sales were recorded on the MLS, reflecting a 1 percent decrease compared to the same period last year, while condo sales experienced only a 0.2 percent dip, totaling 595 closings.
The median sale price for single-family homes grew by 5 percent to $485,000, while for condos, it rose by 19 percent to $260,000. Inventory for single-family homes declined by 19 percent to 434 listings, while condo inventory increased by approximately 40 percent to 677 listings.
