Luxury Condo Supply Surges To 16 Months Of Inventory Listed For Resale In Miami Beach

A review of 2023 luxury condo statistics shows that the average asking price for a unit is $4.4 million or $1,909 per square foot.

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Miami Beach is in a buyers market for luxury condos with about 16.4 months of supply currently listed for sale at the peak of the South Florida Winter Buying Season, according to an analysis of statistics compiled by CondoVulturesRealty.com.

In the 12 months of 2023, buyers purchased an average of nearly 33 luxury units per month for a total of more than 390 units between January and December.

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Based on the current active listings in the Multiple Listing Service – a database used by Realtors to market condos – the Miami Beach neighborhood is in a buyers market with a supply of nearly 535 units available for purchase.

Generally, six months of supply is considered equilibrium for the housing market. Less months indicates a sellers market and more months points to a buyers market from a negotiating perspective.

This is an about-face from the sellers market of the pandemic years when a plethora of work-from-home employees relocated to South Florida from places such as California, Illinois and New York. The influx of transplants to South Florida bought up or leased out much of the available housing supply, which increased prices and triggered new development.

Rising property values from strong demand, skyrocketing insurance prices following the Surfside condo collapse disaster and high interest rates from a series of hikes by the Federal Reserve brought the South Florida housing market to a standstill in the second half of 2023.

Industry watchers are at odds as to the direction of the South Florida housing market in 2024. Bullish investors are predicting housing demand will reignite once interest rates begin to fall. Bearish investors contend that home prices are too high and likely to collapse in the months ahead.