The Miami Beach Condo Market Report for Q4 2020 | What to Expect Going into 2021?

This beautiful unit at Faena House sold for 25% less than its original listing price of $15.5M

Miami Beach Condo Market Report for Q4 2020

Miami is seeing a high influx of new residents (and thus buyers) mostly for its favorable tax climate. Although many of these relocation buyers are looking for single-family homes, we have also experienced a healthy demand for Miami Beach condos. Compared to our previous study that looked mostly into Q2 and Q3 of this year (more focusing on the market at the start/peak of the pandemic) we see that in Q3 and Q4 the Miami Beach Condo Market is catching up again. In the below table we show the amount of closed sales in the last half a year and compare that to 2019 and it does not show the same gap as we saw comparing Q2/Q3 with the previous year. Of course buyers are able to fly into Miami again and the condos have opened up again. The fact that nobody was allowed into condos was the condo market’s achilles heel.

We see a very strong luxury market, which is nothing new at this point in 2020. Most tax refugees flocking into Miami are power players that are looking for the best of the best and therefore luxury sales have gained in strength. We saw 3 sales in the $10M+ market with very high sales prices per SF averaging at $3,455 per SF.  Prices remained relatively stable compared to the same period a year earlier, with the exception of prices in the $2M-$3M range. The $1M-$2M range seems to be gaining in strength as well, as sales are up and inventory is down.

Maybe the most important table here is the one with the months of inventory. The months of inventory provide you with information about the supply and demand relationship or the absorption rate of a market. The months indicated here are the months it will take to sell all available product if no new product were to enter the market. Between 6 and 9 months is generally considered a neutral or balanced market while less than 6 is a sellers market and more than 9 a buyers market. The Miami Beach condo market is experiencing a high inventory, mostly in the range between $2M and $10M. The more affordable sub-markets as well as the ultra-luxury market is experiencing a healthier inventory.

The Miami Beach Condo Market Report; Transaction volumes in Q3 and Q4 of 2019 compared to 2020

The Miami Beach Condo Market Report; Prices per SF in Q3 and Q4 of 2019 compared to 2020

The Miami Beach Condo Market Report; Discounts on the sales price in Q3 and Q4 of 2019 compared to 2020

The Miami Beach Condo Market Report; Months of inventory in Q3 and Q4 of 2019 compared to 2020