With still-high mortgage rates and continued demand for homes, residential sales across South Florida were up, down and stagnant in the fourth quarter, depending on the city.
Median prices continued to rise for condos and single-family homes in most markets, according to Douglas Elliman’s reports. The reports, based on sales recorded in the Multiple Listing Service, also showed an uptick in new listings.
Despite the rise in inventory, it’s still not enough to satisfy the demand for housing, said the report’s author, Jonathan Miller of Miller Samuel.
“We’re continuing to see prices rise. We’re continuing to see inventory at unusually low levels. Price growth is fairly robust,” Miller said. “The wild card is inconsistency with sales.”
He joked that while 2023 was the year of disappointment, 2024 will be the year of positive “incremental change.”
Miller said the effect of the Fed’s announcement is already showing up in increased signed contracts. Optimism fueled by the Federal Reserve’s plans to cut rates in 2024 already resulted in a rise in mortgage applications.
“Instead of this cloudy unknown about the future, now the consumer has the sense that rates will be lower a year from today, two years from today. It created this sort of forward-looking perspective that hasn’t existed for the last couple of years,” he said.
Miami coastal mainland
Residential sales fell 9 percent in the fourth quarter, year-over-year, to 2,853 closings across coastal Miami mainland, which includes Greater Downtown Miami, Coconut Grove, Palmetto Bay and other neighborhoods.
Single-family home sales declined 5.5 percent to nearly 1,300 closings. Condo sales dropped 12 percent to about 1,600 sales.
The median sale price of single-family homes grew almost 11 percent, year-over-year, to $669,300. For condos, it rose 5 percent to $435,000, down slightly compared to the third quarter.
While inventory of single-family homes decreased 5 percent to 2,222 listings by the end of the fourth quarter, more condos were put on the market, a trend that continued from the previous quarter. Condo inventory rose nearly 19 percent to 3,900 active listings.
Miami Beach, barrier island markets
In Miami Beach, Bal Harbour, Bay Harbor Islands, Fisher Island, Golden Beach, Indian Creek, Key Biscayne, North Bay Village, Sunny Isles Beach and Surfside, residential sales dropped 12.5 percent to about 740 closings in the fourth quarter.
Single-family home sales jumped 38 percent to 76 closings. The median sale price fell 29 percent to $2.5 million. Inventory grew nearly 17 percent to just over 400 listings.
Condo sales fell 16 percent to 661 sales. The median sale price grew 11 percent to $520,000. Inventory rose 19 percent to nearly 3,000 listings.
Coral Gables
Single-family home sales in Coral Gables were almost flat. Compared to the same period of last year, just one additional home sold for a total of 64 houses in the fourth quarter. The median price continued to swell, rising 27 percent to nearly $2 million. Inventory shrunk, down 18 percent to 149 listings of single-family homes.
Condo sales rose 12 percent to 55 closings, compared with 49 condos that sold in Coral Gables in the fourth quarter of 2022. The median sale price was up 12 percent to $625,000. Inventory grew as well, up 73 percent to 104 condo listings.
Fort Lauderdale
Single-family home sales increased 10 percent to 377 closings in Fort Lauderdale. The median sale price for a single-family home rose about 6 percent to $570,000. Inventory grew to 749 listings, up 11 percent.
Condo sales, meanwhile, fell 9.5 percent to 370 closings. The median price grew 21 percent to $485,000. Inventory was up as well, rising 68 percent, year-over-year, to 1,140 listings.
West Palm Beach
In West Palm Beach, single-family home sales declined 10 percent to 315 closings. The median price increased 8 percent, year-over-year, to $515,000. Inventory rose about 4 percent to 567 listings.
About 500 condos sold, up 4 percent, year-over-year. The median price for a condo increased 11 percent to $265,000. Inventory rose by more than half, up 50.5 percent to 879 listings.
Palm Beach
Nineteen single-family homes sold in the barrier island town of Palm Beach, up 12 percent compared to the fourth quarter of 2022. The median sale price tumbled 46 percent to $8.8 million. Inventory was up 69 percent to 81 home listings.
Condo sales rose 39 percent to 39 closings in the fourth quarter. The median price of condos also fell 12 percent to $1.1 million. Inventory was on the rise, up 24 percent for a total of 165 listings.
Boca Raton
In Boca Raton, single-family home sales fell slightly, by 3 percent to 398 closings. The median sale price, however, jumped 20 percent, year-over-year, to $920,000. Inventory increased to 706 listings of single-family homes, up 13 percent.
Condo sales decreased slightly, by less than 1 percent to 526 closings. The median price grew 5 percent to nearly $370,000. Inventory rose 45 percent to 1,073 listings of condos.