In taking a look at the findings of Miami Coastal Mainland and Miami Beach/Barrier Islands, we learn both markets have “reset” to a state of fewer sales but with increasing median sales prices, year over year.
Let’s check out some highlights, with all figures compared to the same period from a year ago.
- Median sales price increased by 12 percent overall as a 14 percent decline in sales was largely attributed to a decrease in distressed sales
- Median sales price increased by 5 percent overall as total sales decreased by about 22 percent, while the share of mortgage purchases rose
Jonathan Miller’s take:
“In our Elliman Reports for Miami Beach and Miami Mainland, price trends showed mixed results reflecting price stability after several years with upward price pressure. The reports show that these markets have exited the state of euphoria of recent years and reset to a lower level of sales and more supply.
The large price declines in the luxury markets of both regions reflect the significant shift in the mix from the market's former high-end emphasis to the entry and mid-tier markets. These large luxury price declines don’t reflect the same severe falling values, but rather a significant shift in the mix. However in order for sales to rise at the high-end, sellers/developers will need need to be more in sync with current conditions as more inventory enters the market.
In the mainland market, price growth is partly due to the sharp drop in distressed sales activity, which fell by nearly 9 percent to 14.5 percent of all sales. Less lower priced distressed sales push overall price trends higher. Miami Beach was much faster in clearing out distressed sales over the past few years, accounting for only for 5.6 percent of all sales.”