South Florida Q3 resi sales a mixed bag, with inventory falling: Elliman

Increase in home sales and more realistic pricing has led to drops in inventory

(Credit: iStock)
(Credit: iStock)

In Miami, Miami Beach and surrounding cities, sales generally rose in the third quarter, according to the newly released Elliman Reports, authored by Jonathan Miller of Miller Samuel Inc. But elsewhere in the tri-county region, sales dropped or remained stagnant.

Across the board, inventory generally fell, with fewer listings in Miami, Fort Lauderdale, Palm Beach, Boca Raton, West Palm Beach, Manalapan, and other cities. Miller said that inventory has declined due to two reasons: sales are rising, for the most part, and sellers are lowering their prices in line with market conditions.

Miami Beach and the barrier islands
In the third quarter, residential sales grew by 5.2 percent, year-over-year, in Miami Beach and the barrier islands, up to 850 closings.

Bal Harbour, Bay Harbour Islands, Fisher Island, Golden Beach, Indian Creek, Key Biscayne, Miami Beach and Miami Beach’s Mid Beach, North Beach and South Beach neighborhoods, North Bay Village, Sunny Isles Beach and Surfside make up Miami Beach and its barrier islands, as defined by Elliman. South Beach includes properties in the 33139 zip code and those in the 33140 zip code south of 30th Street.

Condo sales on the beaches increased by 7.3 percent, year-over-year, to 750, representing the bulk of residential sales that quarter. One hundred single-family homes sold, an 8.3 percent decline.

The median sales price for condos rose by 4.2 percent to about $349,000, while the median sales price for houses fell slightly by 1.4 percent to $1.4 million.

Here’s a breakdown of the beaches submarkets:
Sunny Isles Beach: condo sales increased by 23 percent to 171
Bal Harbour: condo sales doubled to 28 closings, up 100 percent
Bay Harbor Islands: condo sales took a nosedive, falling nearly 46 percent to 20 closings
Surfside: condo sales rose by 7.7 percent to 14
North Bay Village: condo sales increased by 21.4 percent to 51
Miami Beach islands: single-family home sales dropped by 64.3 percent to 5 closings
North Beach: condo sales fell by 4.7 percent to 82
Mid-Beach: condo sales dropped by 15.6 percent to 76
South Beach: condo sales decreased by nearly 17 percent to 216
Key Biscayne: condo sales rose by 9.5 percent to 46, while single-family home sales dropped by 50 percent to 6 closings
Fisher Island: condo sales dropped by 10 percent to 9

Miami coastal mainland
Unlike in Miami Beach, the single-family market performed better than the condo market on the coastal mainland, which includes Aventura, downtown Miami, Brickell, Coconut Grove, Coral Gables, South Miami, Pinecrest and Palmetto Bay.

Overall residential sales still rose in the third quarter, year-over-year, up 4.6 percent to 4,045. The median sales price also increased by 4.8 percent to $330,000, according to the report.

Condo sales throughout the mainland inched up to 1,971 closings, an increase of only 1.1 percent. Sales of single-family houses jumped by 8.1 percent up to 2,074.

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Condo sales have increased for five of the last six quarters, and the median sales price of condos has risen annually for more than three years, according to Miller’s analysis.

Here’s a breakdown of submarkets on the mainland:

Aventura: condo sales fell by 13.7 percent to 220
Downtown Miami: condo sales rose by 6.2 percent to 1,414, while single-family sales rose by 7.8 percent to 1,740
Brickell: condo sales dropped by 13.4 percent to 220 closings
Coconut Grove: condo sales jumped by 20 percent to 12 closings, while single-family home sales fell by one sale, down 9.1 percent to 10 closings
Coral Gables: condo sales decreased by 1.3 percent to 76 closings, while single-family home sales surged by 26.5 percent to 143
South Miami: single-family home sales increased by 13.6 percent to 25
Pinecrest: single-family home sales jumped by 35.3 percent to 69
Palmetto Bay: single-family home sales took a plunge, down 19.6 percent to 78

Fort Lauderdale
Residential sales remained stable year-over-year in Fort Lauderdale, a market that reported one less closing in the third quarter, compared to the same period in 2019.

While condo sales fell by 4.1 percent, down to 490, home sales rose by the same percentage, up to 505. Luxury condo sales, defined as the upper 10 percent of the market, fell by one sale, and luxury home sales rose by eight sales, up 4.1 percent.

Boca Raton, Highland Beach
Residential sales increased slightly in Boca Raton and Highland Beach, up less than 1 percent for a total of 1,450 sales. Condo sales dropped to 748 closings, a 4.5 percent decline. Home sales increased to 702 closings, up 7.3 percent.

The median condo price decreased by 2.2 percent to $220,000, while the median single-family home price rose by 3.9 percent to $465,000.

Palm Beach
In Palm Beach, residential sales reported a 9.2 percent drop. The decline reflects stable home sales of 18 sales and an 11.6 percent drop in condo sales, down to 61. Even though the number of single-family home sales didn’t change, the prices clearly rose. The median price for single-family homes increased by a whopping 59 percent to nearly $5.9 million. Condo prices also surged, with the median price rising by nearly 22 percent to $535,000.

West Palm Beach
Condo sales fell in West Palm Beach, dragging down the overall residential market. Sales fell by 2.8 percent to 1,161. Condo sales reported a 5.6 percent drop to 662, while single-family home sales increased slightly, up 1.2 percent to 499.

Despite lackluster sales, the median prices of both condos and houses continued to rise, up 7.7 percent to $140,000 for condos and up 5.3 percent to $300,000 for houses.

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