Prices Trends Generally Edging Higher, With Sales Slipping Slightly and Uptick in Inventory
Douglas Elliman Real Estate, the second largest independent residential real estate brokerage in the United States by sales volume, releases the first quarter 2019 South Florida Market Reports, covering Miami Beach and the Barrier Islands, Miami Coastal Mainland, Fort Lauderdale, Boca Raton, Highland Beach, Delray Beach, Wellington, Palm Beach, Jupiter, and Palm Beach Gardens.
The reports showed price trends generally edging higher in South Florida, although sales slipped and inventory slightly increased this quarter. Miami Beach, Boca Raton, Highland Beach and Jupiter showed the most strength, while the Palm Beach condo market was active with the second-highest market share of condo sales in history for the quarter.
“The South Florida market remains strong, although we are seeing a bit of hesitancy with upward price trends, a slight dip in sales and inventory edging a little higher in most of the regions,” said Jay Phillip Parker, Chief Executive Officer of Douglas Elliman Florida brokerage. “With mortgage rates lower than they were at this time last year, I anticipate a tail wind heading into next quarter.”
The median sales price increased in many of the markets including Miami Beach, Boca Raton, Wellington, Jupiter, and Palm Beach Gardens, with price trend indicators moving higher in Miami Beach even as the number of sales slipped. Delray Beach showed single-family sales slipping for the first time in six quarters as listing inventory expanded. In Palm Beach, condos sales continued to drive the market, rising year-over-year for the fifth consecutive quarter.
“Overall, South Florida is outperforming the Northeast, as had been expected with the new tax laws which were very favorable to Florida real estate,” said Jonathan Miller, President and CEO of Miller Samuel Inc, and author of the report. “That said, that trend is slow in forming, but as we move past tax day I think we may see some pent-up demand released into the spring market.”
MIAMI BEACH/BARRIER ISLANDS HIGHLIGHTS
Overview
- Overall price trend indicators moved higher than year ago levels as the number of sales slipped
- Marketing time jumped as older inventory was sold off and listing inventory slipped
- Condo median sales price was unchanged from the prior year results
- All single family price trend indicators moved higher as sales decreased
- Luxury condo inventory slipped as price trends showed mixed results
- Luxury single family price trend indicators surged, aided by a jump in average sales size
Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price rose 2.3% to $440,000
- Average sales price increased 11.6% to $1,129,317
- Number of sales slipped 2% to 772
- Days on market was 145, up from 80
- Listing discount was 10.6%, up from 10.4%
- Listing inventory slipped 0.3% to 6,726
LUXURY CONDO
- Median sales price rose 12.7% to $3,225,000
- Average price per square foot decreased 11% to $1,299
- Days on market was 70, down from 72
- Listing discount was 12.7%, up from 11.5%
- Listing inventory declined 6.6% to 1,006 units
- Entry threshold began at $1,864,000, up from 1,750,000
LUXURY SINGLE FAMILY
- Median sales price surged 61% to $10,100,000
- Average price per square foot rose 2.6% to $1,524
- Days on market was 352 up from 141
- Listing discount was 12.1%, down from 17.9%
- Listing inventory fell 38.5% to 152 units
- Entry threshold began at $7,250,000, up 70.6%
MIAMI COASTAL MAINLAND HIGHLIGHTS
Overview
- Median sales price rose year over year for the eighteenth consecutive quarter
- Sales declined annually for the first time in three quarters
- Listing inventory trended higher for the fourth straight quarter
- Luxury condo listing inventory declined annually for the fourth consecutive quarter
- Luxury condo price trend indicators were mixed year over year as marketing time expanded
- Luxury single family price trend indicators slipped as marketing time expanded
Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price increased 0.6% to $320,000
- Average sales price slipped 2.2% to $425,740
- Number of sales declined 7.5% to 3,104
- Days on market was 91 up from 51
- Listing discount was 5.7%, down from 5.9%
- Listing inventory rose 6.9% to 12,247 units
LUXURY CONDO
- Median sales price slipped 6.9% to $780,000
- Average price per square foot rose 4.9% to $468
- Days on market was 160 days, down from 167
- Listing discount was 7.2%, down from 7.4%
- Listing inventory declined 0.3% to 2,759
- Entry threshold began at $580,000, up 9.4%
LUXURY SINGLE FAMILY
- Median sales price slipped 0.5% to $1,407,500
- Average price per square foot slipped 0.9% to $439
- Days on market was 133 days up from 76
- Listing discount was 8.9%, up from 8.8%
- Listing inventory rose 14.7% to 1,223 units
- Entry threshold began at $880,000, down 4.6%
FORT LAUDERDALE HIGHLIGHTS
Overview
- Condo price trend indicators slid year over year with decline in average sales size
- Condo sales declined annually for the first time in five quarters
- Single-family price trend indicators were mixed as inventory expanded annually for the fifth straight quarter
- Luxury condo pending sales signed in the quarter surged over the same period last year
- Single family luxury median and average sales price moved higher as marketing time stabilized
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price decreased 6.2% to $1,226,000
- Average price per square foot rose 0.5% to $619
- Days on market was 52, down 8.8%
- Listing discount was 7.6%, up from 6.7%
- Listing inventory rose 20.4% to 348 units
- Entry threshold began at $875,000 down 7.9%
LUXURY SINGLE FAMILY
- Median sales price rose 8% to $2,240,000
- Average price per square foot slipped 2.6% to $530
- Days on market was 163, unchanged
- Listing discount was 14.9%, up from 8.1%
- Listing inventory rose 19.6% to 396 units
- Entry threshold began at $1,365,000, down 6.5%
BOCA RATON / HIGHLAND BEACH HIGHLIGHTS
Overview
- Condo & single family price trend indicators rose year over as sales slipped for the first time in three quarters
- Condo & single family price trend indicators saw larger growth at the higher end of the market
- Condo listing inventory fell annually for the second straight quarter
- Luxury condo price trends surged year over year partially due to jump in average sales size
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price jumped 48.3% to $1,175,000
- Average price per square foot rose 39.2% to $522
- Days on market was 146 days, up from 116
- Listing discount was 8.2%, up from 7.3%
- Listing inventory declined 21.4% to 313
- Entry threshold began at $665,000, up 26.7%
LUXURY SINGLE FAMILY
- Median sales price declined 14.9% to $1,830,000
- Average price per square foot rose 9.1% to $455
- Days on market was 136 days, up from 134
- Listing discount was 9.4%, down from 9.4%
- Listing inventory slipped 2.1% to 410
- Entry threshold began at $1,350,000 up 8%
DELRAY BEACH HIGHLIGHTS
Overview
- Single family sales slipped for the first time in six quarters as listing inventory expanded for four quarters
- Condo price trend indicators haven’t declined in thirteen straight quarters
- Luxury single family price trend indicators skewed lower by decline in average sales size
Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 1.4% to $2,045,250
- Days on market was 143, up from 126
- Listing discount was 9.7%, up from 8.7%
- Entry threshold began at $1,298,000, down 1.6%
LUXURY CONDO
- Median sales price declined 26.8% to $510,000
- Days on market was 111, up from 88
- Listing discount was 5.4%, down from 6.6%
- Entry threshold began at $385,000, unchanged
WELLINGTON HIGHLIGHTS
Overview
- Condo median sales price increased annually for the tenth straight quarter
- Condo inventory expanded year over year for the fourth consecutive quarter
- Single-family price trend indicators all rose year over year for the fourth consecutive quarter
- Single-family sales declined annually for the fourth time in the past five quarters
- Luxury condo and single-family price trend indicators surged due to significant shift to larger average sales size
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price surged 58.5% to $598,500
- Average square footage jumped 14.6% to 2,288
- Days on market was 154, down from 157
- Listing discount was 1.8%, down from 3.7%
- Listing inventory fell 46.8% to 33
- Entry threshold began at $415,000, up 22.1%
LUXURY SINGLE FAMILY
- Median sales price jumped 79.9% to $2,752,500
- Average square footage surged 42.7% to 5,717
- Days on market was 184, down from 262
- Listing discount was 14.2%, up from 9.5%
- Listing inventory declined 6.3% to 236
- Entry threshold began at $885,000 down 1.1%
PALM BEACH HIGHLIGHTS
Overview
- Condos sales rose annually for the fifth consecutive quarter to the second highest market share recorded
- Most first quarter condo sales in four years while inventory increase annual for the fourth time in five quarters
- Single family price trends showed mixed results as sales fell to their lowest first quarter total in seven years
- Luxury average sales size fell sharply as the luxury price threshold fell annually for the fourth straight quarter
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO AND SINGLE FAMILY
- Median sales price declined 29.2% to $7,100,000
- Average sales size dropped 25.1% to 4,915 square feet
- Average price per square foot fell 21.1% to $1,641
- Days on market was 106, down from 122
- Listing discount was 8.1%, down from 14.6%
- Listing inventory jumped 27% to 127
- Entry threshold began at $5,100,000, down 6%
JUPITER / PALM BEACH GARDENS HIGHLIGHTS
Overview
JUPITER
- Single-family median sales price moved higher for the second straight month
- Condo sales rose year over year for the third consecutive quarter
PALM BEACH GARDENS
- Single-family sales slipped for the third time in four quarters as all price indicators rose
- Condo median price slipped year over year for the first time in 27 quarters
Key Trend Metrics (compared to same year ago period)
JUPITER SINGLE FAMILY
- Median sales price increase 6% to $530,000
- Days on market was 71, down from 77
- Listing discount was 5.4%, up from 6.5%
- Listing inventory rose 11.1% to 481
JUPITER CONDO
- Median sales price rose 7% to $305,000
- Days on market was 65, up from 46
- Listing discount was 5.3%, up from 5.1%
- Listing inventory rose 3.1% to 328
PALM BEACH GARDENS SINGLE FAMILY
- Median sales price increased 8.2% to $499,500
- Days on market was 89, up from 83
- Listing discount was 6.9%, down from 7.9%
- Listing inventory rose 3% to 556
PALM BEACH GARDENS CONDO
- Median sales price slipped 2.1% to $235,000
- Days on market was 71, up from 49
- Listing discount was 4.1%, down from 4.5%
- Listing inventory jumped 16.9% to 277
About Douglas Elliman Real Estate
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 118 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado and Massachusetts. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.
