Skyrocketing Luxury Home Prices in Select South Florida Cities
October 27, 2023
Palm Beach, in particular, witnessed a remarkable annual price surge, with the town’s median sales price experiencing a substantial increase of 53.7% to reach $14.35 million, as outlined in the report. Moreover, the island’s inventory displayed a noteworthy uptick from last year, boasting 53 active listings on the market, marking a 51.4% increase. However, Palm Beach sales saw a dip, decreasing from 16 to 11 closings year over year.
Miami Beach’s luxury real estate market, specifically the top 10% of sales, mirrored this impressive trend, with its median sales price surging by 42.4% year over year to $19.825 million. Nevertheless, the inventory experienced a decline, dropping by 20.4% to 86 active listings, while sales remained stable with 10 transactions in the third quarter.
In contrast, mainland Miami witnessed a decline in its luxury property prices, declining by 6.6% yearly to $2.51 million. Sales also dipped, falling by 5.9%, although inventory slightly increased.
In a report released on Thursday, Pamela Liebman, President and CEO of Corcoran, highlighted the more noticeable impact of current market challenges on the coastal mainland. She pointed out that this area’s number and volume of closings declined significantly compared to the Miami Beaches.
In Fort Lauderdale’s luxury real estate sector, prices recorded a respectable annual increase, with the median sale price rising by 11.2% to $4.3 million. Inventory also saw an 18.8% increase; third-quarter sales remained consistent at 44.
Jonathan Miller, President and CEO of the appraisal company Miller Samuel and the author of the Douglas Elliman reports, noted that although inventory has increased modestly compared to the previous year, it still lags significantly behind pre-pandemic levels, by approximately 30% to 50%.
