While the South Florida real estate market in 2021 reached unprecedented levels, 2022 revealed a return to normal levels, according to recent reports from industry experts. According to The Keyes Company and Illustrated Properties’ new Luxury Report, realtors and owners who sold $1 million-and-up single-family homes and condominiums last year benefitted from continued strong demand and extremely tight supply. It also unveiled a 10.2% year-over-year drop in total $1 million-and-up single-family sales to 10,149 in 2022. The region’s luxury condo sector also saw a year-over-year decline of 11.9% in total sales to 5,501. In the past, luxury listings often spent at least 300 days on the market before a deal, but the average days on the market for luxury single-family homes plunged by 33.1% to 75 from 2021 to 2022.
“The sharp year-over-year declines in average days on market reinforce that our region is in high demand,” Christina Pappas says, Keyes president. “That demand, coupled with ongoing supply challenges, should help South Florida avoid significant drops in pricing. Our relocation specialists continue to get tremendous interest from residents of high-tax states who want to be here.”
Other notable findings in the 2022 luxury report include the following:
- Brickell experienced a 27.6% surge in year-over-year high-end condo sales to 379 in 2022. Doral continues to be one of South Florida’s fastest-growing cities, with a 106.7% year-over-year jump in luxury single-family sales to 124
- In Broward, Parkland and Weston are where Broward-based families want to be, as the former posted a 16.8% year-over-year gain in luxury single-family sales to 292, and the latter saw a 35.6% year-over-year surge to 244. Fort Lauderdale and Hollywood combined to record a 2.9% year-over-year uptick in high-end condo sales to 497. The average sales price in those markets jumped by 29.8% to $2.33 million
- Palm Beach County’s price per square foot for luxury single-family sales increased by 8.8% year-over-year to $731, with the high-end condo price per square foot jumping 17.6% to $952
- The Boca Raton/Delray Beach submarket continues to be the focal point of high-end condo activity in the county, with 330 transactions in 2022
“Luxury residential sellers and buyers grasp the concept of market normalization,” Mike Pappas says, Keyes/Illustrated CEO. “They know that 2019 is a more appropriate bellwether than 2021 when evaluating how our region performed last year. Activity in the second half of 2023 should be particularly brisk as comfort with the current market grows.”
A luxury market report from Alexa Rosario, a real estate agent and industry expert, the Miami market is heading towards a buyer’s market with a 19% drop in the sales price and a 110% increase in total inventory. Sakes in the Boca/Delray area indicate it’s still a buyer’s market, with a 5% decrease in price per square footage compared to last year.
Photo Courtesy: ONE Sotheby’s International Realty
