The changes in federal tax law, which many expected would save the residential market in South Florida, appear to be having less of an impact than originally predicted.
Residential sales in oversaturated markets like Miami Beach and Fort Lauderdale reported drops in the second quarter, following a first quarter that also showed a number of sales declines, according to the newly released Elliman Reports.
“What we have is a very choppy pattern where clearly all the markets aren’t in unison,” said Jonathan Miller of Miller Samuel Inc., who authored the reports. “There are more sales, solid pricing, little or no inventory growth, but it’s choppy.”
While the tax law migration narrative is “still firmly in place,” it seems to be happening at a slower rate, Miller added.
Here’s a look at the breakdown:
Miami Beach and the barrier islands
Sales volume fell in Miami Beach and the barrier islands, which Elliman defines as Sunny Isles Beach, Bal Harbour, Bay Harbor Islands, North Bay Village, Surfside, Key Biscayne and Fisher Island.
Overall, sales dropped to 964, down 6 percent year-over-year. The median sale price was $406,000, a 7.3 percent decline, and there were nearly 20 months of supply, up 6.5 percent.
Condo sales in the beachfront markets of Miami-Dade fell by nearly 6 percent to 861; while single-family home sales also decreased by 6.4 percent to 103 closings. The median sale price of a condo fell nearly 8 percent to $350,000; the median price of a house was $1.7 million, up 12.6 percent compared to the second quarter of last year.
Despite the overall reduction in sales, two beachfront markets reported increases in closings. In Sunny Isles Beach, condo sales jumped 25.7 percent to 191. In Surfside, condo sales were flat but single-family home sales rose by about 18 percent to 13 closings.
Closings fell year-over-year in Fisher Island, Key Biscayne, Miami Beach, North Bay Village, Bay Harbor Islands, and Bal Harbour.
Coastal Miami mainland
Closed residential sales rose on the coastal Miami mainland, up 5.5 percent to 4,422. The median price for residential properties increased by 4.7 percent to $335,000. Elliman’s reports group together Aventura, downtown Miami, Brickell, Coconut Grove, Coral Gables, South Miami, Pinecrest and Palmetto Bay.
There were 2,195 condo sales, an annual increase of about 6.7 percent. The median condo price rose 6.1 percent to $260,000, up from $249,000 the year before. While the active inventory rose by fewer than 300 condos to 3,662, the months of supply fell slightly due to increased sales.
Single-family home sales increased by 4.4 percent to 2,226. The median sales price was $396,000, up 4.2 percent. More sellers listed their single-family homes, as well, and the months of supply decreased slightly due to the sales pace picking up.
Out of the submarkets that Elliman included in the mainland, Coconut Grove had a rough second quarter, with a 38.5 percent drop in condo sales, down to 16, and a 33 percent decline in single-family home sales, down to 14.
Condo sales tanked in the second quarter, dropping by nearly 25 percent to 605 closings. The median price of condos fell by more than 22 percent to $300,000.
At the same time, single-family home sales rose 15.6 percent to 89 closings. The median price fell slightly, by 2.5 percent, to $385,000.
The sharp decline in condo sales could be due to the fact that Fort Lauderdale condo sales surged a year prior.
Boca Raton and Highland Beach
Condo and single-family home sales increased at a modest pace in Boca Raton and Highland Beach. Nearly 900 condo units sold in the second quarter, up 4.3 percent year-over-year, while 753 houses sold, a 4.4 percent increase. The luxury market performed similarly, the reports show.
The median sale price of condos rose by 4.5 percent to $230,000, and the median price of single-family homes was up 4.4 percent to 753 closings.
In the town of Palm Beach, condo sales dropped by 8.6 percent to 106 closings, and single-family home sales totaled only 31, down nearly 30 percent. The median condo price was $771,500, up 23.4 percent, and the median single-family home price totaled $5.1 million, down 4.2 percent, year-over-year.
Despite the huge percentage drop in single-family home sales, a handful of large deals recently closed in Palm Beach, including the record-setting $105 million sale of the late Terry Allen Kramer’s estate at 1295 South Ocean Boulevard.