Residential sales fell again across South Florida in the first quarter, as inventory rose, yet was still below pre-pandemic levels.
The only area where sales increased was Manalapan, Hypoluxo Island and Ocean Ridge, according to Douglas Elliman’s first quarter reports. That’s likely because the market is very small, so a bump of just a few deals can make the difference. Single-family home sales rose 36 percent annually to 15 closings in the first quarter.
Aside from that trio of oceanfront towns in Palm Beach County, residential sales fell, year-over-year, across the South Florida cities that Elliman covers. Jonathan Miller, who authors the quarterly reports, said the number of deals has also fallen below pre-pandemic levels.
“It’s not just about mortgage rates being more than double what they were a year ago. Inventory is chronically low,” he said, adding that inventory is 30 percent to 60 percent below where it was in the same period of 2020 and before.
Miller pointed to inventory in Boca Raton as an example. Though it’s up more than 100 percent for both condos and single-family homes, compared to the same period of last year, it’s still considerably lower than in the first quarter of 2020.
Bidding wars still occurred in the first quarter, but fewer properties sold above asking price, Miller said. And price discounts became common across South Florida, the reports show.
Miller again warned against comparing sales in the first quarter of this year to the first quarter of last, when mortgage rates were still in the 3 percent range.
Miami coastal mainland
Residential sales fell 42 percent, year-over-year, to 3,073 closings in the coastal areas of the mainland, which include Greater Downtown Miami, Coconut Grove, Palmetto Bay and other neighborhoods, according to the reports. The median sale price rose about 10 percent to $522,000.
Single-family home sales declined 30 percent to nearly 1,400 closings. The median sale price increased at a slower pace, up about 4 percent to $610,000. Condo sales took a bigger year-over-year hit, dropping by about 50 percent to 1,682 closings. The median sale price rose 4 percent to $415,000.
Inventory of single-family homes jumped 60 percent to 1,805 listings, and condo inventory grew 63 percent to 3,178 listings.
Miami Beach and the barrier islands
Residential sales 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 totaled 932 closings, down 51 percent annually.
Single-family home sales fell 55 percent to 72 closings in the first quarter. The median sale price rose about 4 percent to $2.8 million. Inventory increased 57 percent to 364 closings.
Condo sales dropped 51 percent, year-over-year, to 860 closings across the barrier islands. The median sale price increased slightly, up 2 percent to $548,000. Inventory of condo listings also grew, up 33 percent to 2,510, according to the reports.
Coral Gables
Single-family home sales in Coral Gables declined 30 percent to 104 closings. The median sale price fell 8 percent to $1.7 million. Inventory doubled in a year, up 102 percent to 125 listings.
Condo sales in Coral Gables decreased 56 percent to 57 closings. The median sale price grew 12 percent to about $574,000. Inventory of condos rose 6 percent to 71 listings by the end of the first quarter.
Fort Lauderdale
Single-family home sales dropped 31 percent, year-over-year, in Fort Lauderdale to 385 closings. The median sale price declined by 11 percent to $580,000, the reports show. Inventory of single-family homes rose 91 percent to 577 listings.
Condo sales fell 41 percent to 461 closings in Fort Lauderdale. The median sale price also decreased 3 percent to $425,000. Inventory climbed 135 percent to 782 listings.
Palm Beach
Single-family home sales continued to tumble in Palm Beach, compared to the first quarter of last year. Closed sales fell 63 percent to 16 closings. Inventory rose 34 percent to 71 single-family home listings. The median price dropped 26 percent to $8.9 million.
Condo sales fell 35 percent to 77 closings. The median price of condos grew 66 percent to $1.5 million. Inventory ballooned to 160 listings, up 146 percent.
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Boca Raton, Highland Beach
Closed single-family home sales in Boca Raton and Highland Beach fell 23 percent, year-over-year, to 442 in the first quarter. The median sale price rose 5 percent to $815,000. Inventory more than doubled, up 111 percent to 577 listings.
Condo sales in those two markets fell 31.5 percent to 609 closings. The median sale price rose a slight 1 percent to $350,000. Inventory climbed 174 percent to 768 listings.