More homeowners are putting their properties up for sale across South Florida, but inventory levels are still at pre-pandemic levels.
At the same time, residential sales continued to fall in most markets across the tri-county region, according to Douglas Elliman’s second quarter reports. The theme continues of higher-end markets outperforming lower-priced markets. And in markets where the median price is highest, the share of cash sales is also high, said housing expert and appraiser Jonathan Miller, who authors the Elliman reports.
“More affluent people have workarounds for mortgage rates,” Miller said. “If you have a wealth manager, you’re not paying 7 percent for a 30-year fixed mortgage.”
Miller also said that while inventory is rising, it fell in many South Florida markets compared to the first quarter. “You would think it would peak in Q2, but on a quarterly basis it declines in almost every market but two or three.”
Median prices, which had been on the rise for years, are falling in some markets, like Boca Raton. Overall, prices are still growing.
The growing divide between old and new condos also continues, Miller said, a result of condo safety legislation passed after the Surfside condo collapse in 2021.
Elliman’s reports are based on sales recorded in the Multiple Listing Service for the quarter ending June 30, and do not include off-market deals.
Here’s a breakdown:
Miami Beach and the barrier islands
Residential sales fell 24 percent, year-over-year, to 840 closings in Miami Beach and the barrier island markets, which include Bal Harbour, Bay Harbor Islands, Fisher Island, Golden Beach, Indian Creek, Key Biscayne, North Bay Village, Sunny Isles Beach and Surfside. The median sale price rose nearly 15 percent to $802,500.
Single-family home sales dropped 16 percent to 101 closings. The median sale price declined 14.6 percent to $2.9 million. Inventory rose 18.6 percent to 408 listings, or about a year of supply.
Condo sales in Miami Beach and the barrier island markets dropped 25 percent compared to the same period last year, to 739 closed sales. The median sale price rose 8 percent, to $635,000. Inventory increased 45 percent to 4,731 listings, or about 19 months of supply. Of the markets included in Elliman’s reports, the barrier islands have the greatest combined supply of condos in the region.
Coral Gables
In Coral Gables, single-family home sales actually increased in the second quarter, year-over-year, by 16.5 percent to 113 closings. Inventory grew 29 percent to 223 listings, and the market has about six months of supply, which is considered a balanced market.
The median sale price of single-family homes rose 11 percent, year-over-year, to $2.3 million.
Condo sales in Coral Gables fell 11 percent to 64 closings. Inventory rose 42 percent to 183 listings, for a total of 8.6 months of supply. The median sale price of condos rose 14 percent to $672,500.
Fort Lauderdale
Second quarter single-family home sales in Fort Lauderdale fell 16 percent, year-over-year, to 415 closings. Inventory grew nearly 22 percent to 1,054 listings, or about nine months of supply. The median sale price of a home in Fort Lauderdale reached $620,000, up just 3.3 percent compared with the second quarter of last year.
Condo sales increased slightly, up 2.5 percent, to 456 closings. Inventory rose 16.3 percent to 1,774 listings, or about a year’s worth of supply. The median sale price actually dipped, less than 1 percent, to $432,500.
Boca Raton/Highland Beach
In Boca Raton and Highland Beach, second quarter single-family home sales experienced a 6.5 percent annual decline, to 588 closings. Inventory rose about 14 percent to 812 listings, or just four months of supply. The median sale price for a single-family home in Boca Raton was $932,000, down 2 percent, year-over-year.
Condos fared a bit worse, though supply is normalizing. Condo sales fell 13.3 percent to 685 closings. Listing inventory grew 8.1 percent to 1,447 listings. The market has about six months of supply. The median sale price fell 2.5 percent to $385,000.
Palm Beach
Sales rose in Palm Beach, up 52 percent to 38 single-family home sales. The median price grew 18.6 percent to nearly $13 million on the island. Inventory was also up 20 percent to 73 listings, or about six months of supply.
Condo sales in Palm Beach rose 15 percent to 92 closings. Inventory grew 21 percent to 202 listings, or nearly seven months of supply. The median sale price rose 40.5 percent to $1.85 million.
West Palm Beach
Across the bridge in West Palm Beach, single-family home sales fell 6.2 percent to 396 closings. The median sale price rose 4.1 percent to $582,500. Inventory grew 25.8 percent to 653 listings, or nearly seven months of supply.
Condo sales fell 22.4 percent to 429 closings. Inventory rose 11.7 percent to 1,395 listings, for a total of nearly 10 months of supply. The median sale price fell 12.7 percent to $240,000.
