South Florida’s Luxury Home Market Remains a Steady Draw for Wealthy Buyers
October 25, 2024
In six South Florida markets, excluding mainland Miami, 137 luxury home sales occurred, keeping pace with last year’s numbers. However, luxury prices increased by 9.6%, reflecting a broader trend in the region where prices continue to climb despite slowing demand. Luxury is defined as the top 10% of the housing market.
In Florida’s most exclusive enclaves, market dynamics varied. Palm Beach saw a few standout sales, with six deals at a median price of $14 million—down from last year’s four deals at a much higher $35 million median price. Meanwhile, inventory has increased significantly, with 54 active listings, a rise of 180% year over year.
Conversely, Miami Beach experienced a faster-moving luxury market, with listings down 35% compared to the same period in 2023. Nine homes sold at a median price of $23 million, up from $19.8 million last year. While the number of sales was nearly flat, prices rose.
The broader Miami Beach market experienced a dip in condo and single-family home sales, falling 23% from the previous year. However, the median price surged 8.7% to $680,000, driven primarily by the single-family sector, where the median price jumped 16% to $3.5 million.
In Palm Beach, the median price for single-family homes stood at $9.3 million, down 35.3% from last year, though still firmly within the luxury segment. Both Miami Beach and Palm Beach had the highest share of all-cash deals—over three-quarters of buyers in Palm Beach paid in full, while 62% of Miami Beach buyers did the same. In Coral Gables, where the median luxury home price was $8 million, 54% of sales were all-cash. On the mainland of Miami, cash transactions were much lower at 35%.
Overall, Miami’s housing market softened, mainly due to the condo sector, which accounted for 80% of all sales last quarter, as reported by Corcoran. Condo sales dropped by 20%, marking the ninth consecutive quarterly decline. Still, prices continued to inch upward, with a 6% year-over-year rise, bringing the median condo price to $622,000. New developments primarily drove the increase.
Notably, in Edgewater, where new developments are plentiful, prices shot up by 21% to $770,000, even as sales plummeted by 48%. Meanwhile, the median price increased by 3% to $655,000 in Brickell. In comparison, Downtown Miami saw a slight 1% decline, with the median price dipping to $600,000.
