The 90-Day Key Biscayne Real Estate Market Update | Q3 2022

Advice for Sellers

Inventory remains tight but easing. If you are selling, we believe fair pricing is essential right now. Particularly for the luxury segment, as the inventory of $8M+ homes is increasing rapidly.
Owners in the $5M-$8M range have a window of opportunity in the coming six months. Especially given that inventory levels have not risen and macro-economic effects are yet to hit with full force. This segment continues to show flat to decreasing inventory levels, with nine homes for sale at the end of September. On Mashta Island drive, a home trade for almost $1,600 per square foot. We believe this is the right time to list your property in this segment before inventory levels rise and macro trends hit the market.

Sellers must keep an eye on the market as we anticipate price adjustments, particularly at the top end of the market. We also advise separating premium properties from “pretenders” as almost any property coming to market is priced at a premium, record-setting price. We still have premium buyers, and these buyers may sustain premium prices for unique properties. All others will likely face reality as inventory increases and holding costs for developers and owners go through the roof next year. So, be patient but don’t hesitate to pull the trigger for fair-priced premium properties. After all, Miami’s appeal is not going away, but unique waterfront homes will continue to be scarce.

Advice for Buyers

For buyers, the market will offer more options. Prices will start to correct in some properties. We still need more inventory, as premium properties are scarce, and there has been an influx of non-premium properties priced as premium.

The $8M+ price segment has seen an increase in inventory levels, with 13 homes listed as per mid-October. This number represents double the inventory level from August (when we saw just six homes listed) and quadruple the March-July inventory level of approximately three houses. These are no longer low levels from a historical perspective. Over-optimistic pricing could drive inventory levels up to levels seen in the past decade when homes in this segment sat unsold for long periods.

Entry-level homes (<$4M) inventory on the key remains at 15 by the end of September. Well within the post-covid range of 10-15 homes for sale but a far cry from the 50+ homes available in the years preceding COVID.