High-end buyers in and around Miami are benefitting from a bigger scope of for-sale homes, helping keep the overall supply in a healthy range. But a closer look from EWM Realty International’s Insight Report shows South Florida luxury properties flooding the market, while those under $300,000 are in only two months supply.
For reference, a healthy months supply is considered six to nine months, according to EWM. Months supply for single-family homes over $1 million in Miami-Dade is currently 23 months. For condos in the same price range, supply is 35 months. In Broward County, luxury supply for single-family homes and condos is 18 months and 25 months, respectively.
“A confluence of factors are impacting the residential real estate market in South Florida,” Ron Shuffield, president of EWM, said in a statement. “At the high-end, everything from currency exchange rates, to high supply, to pricing challenges has exuded downward pressure on the market, while the lack of inventory at the lower-end of the pricing scale is impacting entry-level home purchases.”
South Florida luxury not as hot
Miami-Dade County and Broward County both saw increases of luxury single-family homes and condominiums over the past year, the report says, at almost 49 percent and 38 percent, respectively.
Sales of South Florida luxury single-family homes over $1 million are now moving off the market faster than condos in the same price range for the first time in six years.
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So far this year, Miami-Dade saw an average 80 sales per month of luxury single-family homes. In comparison, the county posted an average 70 luxury condo sales per month during the same period.
A survey conducted by EWM among over 850 associates indicated 53 percent have cash buyers observing the luxury segment of the market.
Sales in South Florida “flat”
Since the first of the year, 37 percent of all single-family homes and condos currently for sale in Southeast Florida’s MLS have reduced price by an average 10.5 percent, according to the report.
EWM says after steep increases in Miami-Dade County sales between 2009 and 2013, sales at the mid-year point are flat. Sales leveled in 2014 and 2015 and trended down in June.
Inventory, too, is plateauing — considerably more in Broward County than in Miami-Dade County, the report says.
