The Quarterly Miami Beach Condo Market Update

The Miami Beach Condo Market Update for September 2022

Welcome to our 90-Day Miami Beach Condo Market Update. The Miami Beach Condo Market is experiencing a tremendous increase in inventory. The data for the past three months show the supply climbing to 3 to 4 times more than it was in the previous three months.

What is happening?

The entry-level for Miami Beach, between $1M and $3M is still dynamic, with the months of inventory under nine months. The price bracket between $3M and $5M seems to be experiencing a slowdown. With 60% more properties listed in the last 90 days and 60% fewer closed sales, compared to the previous three months – from April through June this year. The months of supply are now 20 months, which is 700% higher than what it used to be just seven months ago.

Condos priced above $5M are in a similar shape. There are 17 months of inventory in the higher-end of the market. This number will likely come up, considering several more listings will pop up in the high season.

Why is this Happening?

Sellers are listing their properties for the same prices as six months ago. As a result, listing prices do not reflect the current market. On the other hand, buyers are not rushed and are waiting to see the effect of this increased supply. We anticipate this market has shifted in the buyers’ favor, and more opportunities are available now in comparison to just six months ago.

Due to the seasonality of the Miami Beach market, we certainly expect the number of closed transactions to increase in the next six months. However, we also anticipate inventory to keep rising, as many sellers wait to list their properties when the buyers are in town. We can state that the Miami Beach condo market has peaked already and that prices will adjust during the next six months.

Advice for BUYERS

When calculating the value of a unit, particularly in older condos, the premium of updated units with high-end finishes does not translate into the pure value of labor and materials. The premium is the value of labor, materials but also time and effort saved.

Advice for SELLERS

Sellers should consider that many prospective buyers are on the fence at this stage due to the uncertainties, and the high-interest rates. When you have a prospective buyer engaging in an offer, make sure to keep them at the negotiation table.