Despite the threat of hurricanes and tornadoes, South Florida remains a magnet for luxury buyers seeking its sunny shores—albeit with slightly less enthusiasm than before.
According to data released Thursday, most of the region's most expensive neighborhoods experienced growth in both home sales and prices during the third quarter compared to the same period last year. There were 137 luxury sales across six South Florida markets (excluding mainland Miami), consistent with last year’s figures, while prices rose by 9.6%. The luxury segment refers to the top 10% of the market.
This trend aligns with the broader pattern in Florida, where, despite a marked cooling in demand, prices continue to climb across the region.
However, the dynamics varied in Florida’s most exclusive markets. In Palm Beach, for instance, there were a few high-end transactions last quarter, with six sales at a median price of $14 million, compared to four deals at a median of $35 million during the same period last year. Buyers in this niche segment now have significantly more options, with 54 active listings on the market—a 180% increase from the third quarter of 2023.
In Miami Beach, trophy homes were selling faster, with active listings dropping 35% compared to last year. The third quarter saw nine luxury sales at a median price of $23 million—an increase from last year’s 10 sales at a median of $19.8 million.
In the wider Miami Beach market, total condo and single-family sales declined by 23% from the previous year, yet the median price continued to climb, recording an 8.7% annual rise to $680,000. This growth was mainly driven by the single-family sector, where the median price surged 16% year over year, reaching $3.5 million.
Palm Beach's single-family home market, while still firmly in the luxury bracket, had a median price of $9.3 million, down 35.3% from the prior year.
Both Miami Beach and Palm Beach boasted the highest proportion of all-cash transactions, with over three-quarters of Palm Beach buyers paying outright, compared to 62% in Miami Beach. In Coral Gables, where the median luxury price stood at $8 million, 54% of sales were all-cash, while the Miami mainland had the lowest share at 35%.
Overall, Miami's housing market weakened, mainly driven by the condo sector, which accounted for 80% of sales last quarter, as per a Corcoran report released Thursday. Condo sales fell by 20% year over year, marking the ninth straight quarter of declines. However, prices rose by 6% to $622,000, propelled by new development sales.
“Despite reduced sales and increased supply, median prices and average price per square foot saw yearly gains as buyers gravitated toward newer, well-located condos,” according to the report.
In Edgewater, one of Miami's most active areas for new developments, median prices jumped 21% year over year to $770,000, even as sales fell by 48%. In Brickell, median prices increased by 3% to $655,000, while Downtown Miami experienced a slight 1% dip to $600,000, per report's data.
Source: Mansion Global
