The Quarterly Key Biscayne Condo Market Update

Welcome to our 90-Day Key Biscayne Condo Market Update.

Key Biscayne Condo Market Update for October 2022. Key Biscayne shows essential market changes. With condo sales down in half and inventory steadily increasing by over 33% in the last three months, we are seeing price reductions and a slight softening in the median price. Unlike other markets, Key Biscayne has always been a very resilient market. These adjustments are bringing the number of months of supply back into balance, meaning a healthy market with more products to choose from.

Key Biscayne Statistics and Specific Sales

Looking at the statistics page for this neighborhood will reveal the specific sales from the last 90 days. As a registered user on the site, you can go back further than 90 days. Browse the specific sales and observe what is transacting at the highest price per sqft and why. For a granular analysis of a property you are interested in selling (or buying), please call me and we can plug your subject property into the stack to see how it compares. This is an advanced one step further feature, that is not part of the website’s front-end capability, but a highly advantageous tool to assess real-time property values.

ADVICE FOR SELLERS

Inventory remains tight but easing. If you are a seller, we believe fair pricing is essential right now, particularly for the most expensive homes on Key Biscayne, as inventory is increasing rapidly above $8M. Owners in the $4M-$8M range have a window of opportunity in the next six months. Especially given that inventory levels have not risen and macro-economic effects are yet to hit with full force.

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 being priced at a premium, record-setting prices. We still have premium buyers, and these buyers may sustain 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 up-and-top 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 exploded growth of inventory levels, with 13 homes listed as of 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 ~3. These are no longer low levels from a historical perspective. Current 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.

The $5M-$8M segment continues to show flat to decreasing inventory levels, with nine homes for sale at the end of September. We believe this is the right time to list your property in this segment before inventory levels rise and macro trends hit the market more strongly.

Entry-level homes (<$5M) inventory on the key remain at 15 by the end of September, well within the post-covid range of 10-15 homes for sale over the last year; a far cry from the 50+ homes available for sale, in the years preceding COVID.