South Florida’s residential markets are on the upswing, according to the latest Elliman reports.
“Generally speaking for much of 2018, we’re seeing this trend of rising sales, rising prices and stabilizing inventory,” said Jonathan Miller, who authored the report. “Each quarter seems to repeat the prior quarter.”
Miller attributed the market improving in large part to the changes in tax legislation, which brokers and developers say is pushing wealthy out-of-staters to relocate to South Florida.
“This doesn’t suggest that the [entire] Northeastern U.S. is relocating to Florida, but it does suggest that, especially for the wealthy that have been on the fence about declaring homestead in Florida, they are taking action,” he said.
Coastal Miami mainland
On the mainland, sales rose for the first time in three years. Closed sales increased 11.1 percent in the third quarter to 3,868 compared to the same period of the previous year. Inventory also rose 11.8 percent to 11,545 condos and houses.
Home prices, which have been rising for years, continued increasing. The median price of a condo increased 2.1 percent to $245,000; and the median price for a single-family home increased 8.3 percent to $390,000.
Miami Beach and barrier islands
Sales rose a whopping 50.7 percent to 808 closings in Miami Beach and the barrier islands in the third quarter, year-over-year, according to the report. The inventory of houses and condos increased slightly, up 3.3 percent to 6,089.
The condo market experienced more growth than the single-family home market, with sales rising 55.3 percent to 699 in the third quarter. Home sales, meanwhile, jumped nearly 27 percent. The luxury sector, which Elliman defines as the top 10 percent of the market, performed similarly, the report shows.
The median sales price rose 4.7 percent to $335,000. For single-family homes, median prices rose 6.2 percent to $1.42 million.
“Some markets are choppier than others, but the overall pattern is we’re seeing a lot more segments with higher sales activity,” Miller said. That’s the key metric, he added, “followed by the stabilization of inventory.”
Fort Lauderdale, Boca Raton and Palm Beach emerged as the strongest submarkets in the third quarter, he said.
In Fort Lauderdale, residential sales rose 15 percent to nearly 1,000 closings, according to the report. Condo sales surged to 511, up 23.7 percent year-over-year, and single-family home sales rose 7.8 percent to 485 closings.
Luxury condo sales were up, while luxury home sales fell.
Condo inventory remained about the same compared to the third quarter of last year, and the median sales price fell slightly, by 2.1 percent, to nearly $293,000. The inventory of single-family homes, meanwhile, jumped by 16.4 percent to 1,001 houses.
A 17 percent increase in condo sales (up to 783 closings) propelled residential sales in Boca. Closings of single-family homes rose 7 percent to 654, and overall residential sales increased 12.3 percent to more than 1,400 sales.
Luxury condo sales outperformed single-family home sales in Boca Raton, as well, with both experiencing annual increases.
Condo inventory increased by more than 100 units to 1,255, a 9.6 percent jump. So did the median sales price, up 12.5 percent year-over-year to $225,000. The number of single-family homes on the market rose slightly, by 1.8 percent, to 1,290. The median sales price budged, up 1.7 percent to $447,500.
Residential sales jumped by nearly 15 percent in Palm Beach, up to 87 closings. Condo sales increased by 16.9 percent to 69, while residential sales rose by 1 deal, up to 18. The luxury end of the market is up 12.5 percent.
Condo inventory rose by less than 20 units, up 7.7 percent to 252, and the inventory of single-family homes dropped 11 percent to 113. The median sales price for both condos and houses increased year-over-year: for condos, it rose 11.4 percent to $440,000, and for houses, the price rose 17.4 percent to $3.7 million.