Despite a slower pace, South Florida remains a beacon for affluent homebuyers, with its sunny shores continuing to draw interest from luxury seekers.
While hurricanes and tornadoes make occasional headlines, the region’s high-end enclaves showcased a steady performance in the third quarter. Data from Douglas Elliman reveals that sales and prices in many top-tier neighborhoods climbed compared to the same period last year. A total of 137 luxury transactions—representing the top 10% of the market—were recorded across six South Florida markets (excluding mainland Miami), mirroring last year’s figures, while prices edged up by 9.6%.
This resilience aligns with broader trends in Florida, where housing demand has softened, yet prices persist in their upward trajectory.
Diverging Trends in Trophy Markets
South Florida’s elite neighborhoods told varied stories. In Palm Beach, six luxury deals closed at a median price of $14 million in the third quarter—down from four deals at $35 million the previous year. Yet, buyers in this segment now enjoy a larger selection, with active listings soaring 180% year-over-year to 54 properties.
Meanwhile, Miami Beach presented a contrasting dynamic. Active listings for trophy homes dropped by 35%, signaling brisk movement in the market. Nine luxury transactions closed at a median price of $23 million, up from 10 deals at $19.8 million last year.
The broader Miami Beach market experienced a 23% decline in total sales, yet prices continued their upward march. The median price rose 8.7% annually to $680,000, fueled largely by single-family homes, which saw a 16% year-over-year median price jump to $3.5 million.
Palm Beach followed a similar pattern, with a single-family home median price of $9.3 million—solidly within the luxury range but reflecting a 35.3% decrease from last year.
All-Cash Dominance in the Luxury Sector
Cash remains king in South Florida’s luxury real estate. Over three-quarters of Palm Beach buyers opted for all-cash purchases, while 62% of Miami Beach transactions were completed without financing. In Coral Gables, cash deals accounted for 54% of sales, with a median luxury price of $8 million. On Miami’s mainland, cash purchases were less prevalent, comprising 35% of transactions.
Condo Market Drives Miami Trends
Miami’s overall housing market softened, particularly in the condo segment, which represented 80% of sales last quarter, according to Corcoran. Condo sales declined for the ninth straight quarter, dropping 20% year-over-year. Yet, prices continued to rise, with a 6% increase pushing the median to $622,000, driven by new developments.
Edgewater, a hub for new construction, recorded a 21% annual price increase to $770,000, even as sales plunged 48%. Brickell saw a modest 3% median price gain to $655,000, while Downtown Miami bucked the trend with a 1% dip to $600,000.
A Market in Transition
Despite fluctuating sales volumes and growing inventory in some areas, South Florida’s luxury market continues to appeal to buyers seeking premium properties. Whether driven by a desire for beachfront mansions or sleek urban condos, affluent investors remain committed to staking their claim in one of the country’s most dynamic real estate markets.
Source: https://www.mansionglobal.com/articles/slowed-but-steady-south-floridas-luxury-home-market-is-still-a-magnet-for-wealthy-buyers-5edb5aa5
