Continued supply crunch amid intense demand contributes to declines in $1 million-and-up single-family and condo transactions.
South Florida remains among the most in-demand luxury real estate markets in the nation, but the scarcity of available inventory is slowing down the pace of sales, according to the new Keyes/Illustrated Luxury Report. Broward County was an outlier in the second quarter of 2022, posting total sales increases for both luxury single-family and condominiums.
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Miami-Dade, Broward, Palm Beach counties and the Treasure Coast collectively recorded a 6.5% year-over-year drop in total $1 million-and-up single-family sales, from 2,828 in the second quarter of 2021 to 2,645 in the first quarter of 2022. The region’s luxury condo sector also saw a year-over-year decline in total sales, from 1,724 to 1,546.
With supply dwindling following a record-breaking two-year stretch that commenced in the third quarter of 2020, available luxury homes and condos are quickly being snapped up by buyers. South Florida’s average days on market for luxury single-family sales plunged by 44.8% year-over-year to a mere 64 in the second quarter of 2022. Average days on market for $1 million-and-up condo sales dropped by 33.9% year-over-year to 121.
“It is important to put the current market in context with what was the strongest market most of us have ever seen,” Keyes/Illustrated CEO Mike Pappas said. “You expect to see luxury properties stay on the market for 300 days or more. A correction in the velocity of high-end transactions was inevitable. Developers will have to get creative to meet the insatiable demand for $1 million-and-up product throughout the region.”
Broward County outperformed its neighbors to the north and south in terms of year-over-year sales activity gains for the second consecutive quarter. The county’s high-end single-family sector had a 12.9% increase in $1 million-and-up sales to 692. For condos, total sales rose 14.5% year-over-year to 229.
Other notable findings in the second quarter luxury report include:
- Miami-Dade County’s $1 million-and-up single-family sales declined by 22.3% year-over-year to 765 in the second quarter of 2022. The average price per square foot jumped 19.8% to $851 during that span. Luxury condo transactions dipped by 8.1% year-over-year to 877.
- Miami Beach again led the way in total luxury condo sales in Miami-Dade with 189, but that equates to a 36.6% year-over-year decline.
- Palm Beach County’s high-end single-family sales slightly dipped by 3.4% year-over-year to 1,038 in the second quarter of 2022. The average price per square foot concurrently rose by 18.4% to $810. Luxury condo sales dropped by 25.1% year-over-year to 367, with a similar 21% price per square foot gain to $975.
- The average days on market in Palm Beach County continues to plunge for both $1 million-and-up single-family sales (53.4% year-over-year drop to 42 days) and condo transactions (54.9% year-over-year decline to 46 days).
- The Boca Raton/Delray Beach submarket accounted for more than 36% of Palm Beach County’s total luxury single-family sales in the quarter, with 381, and nearly 29% of total high-end condo transactions, with 367.