Miami’s luxury real estate market has taken a noticeable shift this year. After an intense second quarter, the third quarter of 2024 marked a softer phase for Miami’s luxury scene. Sales volume has declined, but interestingly, prices have held steady, and the average days on market haven’t changed from last year. This stability amidst slower sales suggests a resilient market, now leaning into a buyer’s market with a surplus of luxury inventory.
However, there’s a twist: Miami is redefining what luxury means. In Q3, Coconut Grove and Coral Gables stood out, leading the market with the highest growth in sales, the quickest turnover (lowest days on market), and minimal inventory. These neighborhoods are setting new standards in Miami’s luxury space, appealing to high-net-worth buyers seeking the blend of exclusivity and community that these areas offer.
Looking ahead to Q4, historically the slowest quarter, and with an election year in view, we expect buyer caution to play a role. Based on Q3 data, any market adjustment is more likely to be a minor correction than anything dramatic. The lingering question, of course, is: What will Miami’s luxury market look like in 2025?
Katerina Brosda, CEO of Brosda & Bentley shares her opinion “As we move toward 2025, we’re likely to see $3 million to $5 million homes as the new baseline, with higher tiers in the $5 million to $8 million range becoming increasingly common. While the market has slowed, its foundation remains solid, making it a promising prospect for long-term investors”.
Key Facts:
· Miami Single-Family Home Transactions Rise in 3Q 2024
· Miami Condos sale price rise in 3Q of 2024
· Miami-Dade $1M & up condo transactions increased 87% in September 2024
– Miami total existing condo sales decreased 19% year-over-year in September 2024
Statistics do not include South Florida’s robust developer new construction market and volume*
Information provided by www.miamirealtors.com
In Q3 2024, Miami’s luxury condo market made a clear shift into a buyer’s market. What does this mean for sellers and buyers?
Sellers: this environment calls for flexibility on pricing or other terms that are significant to buyers. Although, as mentioned above, recently we have seen rapid price growth increase.
Buyers: this shift offers more options across different price points and, most importantly, strengthens your negotiation power.
Top Neighborhoods: With a 14% increase year-over-year sales, Coconut Grove & Coral Gables remains the strongest market in Miami for a fifth consecutive quarter.
However, with the right approach, you can still achieve a strong outcome by working closely with your agent and adapting to current market trends.
Whether you’re thinking of buying or selling, now is the time to carefully assess market conditions and make informed decisions. Our team at Brosda & Bentley is here to guide you through each step, leveraging our deep knowledge of Miami’s real estate trends and strategies that work best in today’s buyer-oriented market. For more information like this, subscribe to our weekly newsletter for more market reports and data.
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