Residential closings across South Florida fell again in the second quarter, as the lack of “quality inventory” continues to play a major role in the state of the housing market.
Median pricing is generally still rising, though less dramatically than in previous quarters, according to Douglas Elliman’s second quarter reports. Inventory is up year-over-year, but down compared to before the pandemic, said Jonathan Miller, who authors the quarterly reports.
“Pricing is generally below the peak in mid-2021, but we’re seeing some upward pressure again,” Miller said. “Sales activity is below the pandemic frenzy [and] also a little bit less than pre-pandemic levels.”
Miller said that high mortgage rates aren’t the only culprit. “It’s lack of quality supply,” he said.
“Inventory is dramatically lower than pre-pandemic, even though it’s risen this year.”
Inventory is so low that Miller expects that the volume of new construction, when it is completed, will surpass the inventory of existing homes in some markets. But he said that the second quarter may be one of the last where “we’ll see this much distortion.”
Here’s a breakdown by market:
Miami coastal mainland
Residential sales fell 26 percent in the second quarter, year-over-year, to 3,864 closings across coastal Miami mainland, which includes Greater Downtown Miami, Coconut Grove, Palmetto Bay and other neighborhoods.
Single-family home sales declined 16 percent to 1,717 closings, while condo sales dropped nearly 32 percent to 2,147 sales. The median price for single-family homes rose 6.7 percent to $670,000. For condos, it grew only 1.7 percent to $442,500.
Inventory of single-family homes fell 11.5 percent to 1,656. Condo inventory increased 8.4 percent to 2,880 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 1,043 closings in the second quarter, down 44 percent annually.
Single-family home sales dropped 36 percent, year-over-year, to just 96 closings. Condo sales declined 44 percent to 947.
The median sale price for single-family homes fell 17.5 percent to $2.9 million, and the median price of condos again rose slightly, up 1.9 percent to $535,000.
Inventory of single-family houses grew 18.6 percent to 350 listings. About 2,500 condos were on the market at the end of the second quarter, up 19 percent, year-over-year.
Fort Lauderdale
Single-family home sales in Fort Lauderdale totaled 446 closings, down nearly 25 percent compared to the second quarter of last year. Condo sales decreased 26 percent to 590 sales.
The median sale price for homes rose 4.1 percent to nearly $677,000, and up 7 percent for condos to about $465,000.
Inventory of both single-family homes and condos grew compared to the same period of last year. Inventory of houses rose 14 percent to 563 listings, and inventory of condos was up 68 percent to 746 listings.
Palm Beach
On the island of Palm Beach, 31 single-family homes sold during the second quarter, marking a 52 percent annual drop, according to the reports, which do not include off-market deals. The median sale price fell 22 percent to $11.3 million. Inventory of single-family homes rose 50 percent to 54 listings.
Condo sales in Palm Beach decreased 32 percent to 75 closings. The median sale price of condos on the island fell slightly, down 2.4 percent, to $1.3 million. Inventory of condos totaled 135, up 45 percent, year-over-year.
West Palm Beach
Across the bridge in West Palm Beach, single-family home sales dropped 31 percent, year-over-year, to 387 closings. Condo sales declined 17 percent to 689 sales.
The median sale price for homes was $499,000, down 3.5 percent. For condos, it increased more than 8 percent to $260,000.
Inventory of single-family homes rose 19 percent to 442 listings. It jumped 66 percent for condos to 680 listings.
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