The State of the 2024 Miami Condo Market

A Mid-Year Review and Insights from seven leading brokerage firms!

The State of the Miami Market Agent Mastermind is a panel featuring top agents who answer the public’s most pressing questions about the market. If you want to stay informed about the latest market trends and hear from the experts, keep reading. In this article, we focus on the condo market, but stay tuned for our upcoming report, which will cover the broader Miami real estate market and highlight key insights from the panel discussion.

The Miami Condo Market Revealed

Over the past five years, the condo market has surged by 136%, with the growth rate reaching 144% in the Grove and Downtown areas, and 98% in other regions. We delve into the Condo market with the most frequently asked questions.

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Buyers’ Mindset in the 2024 Miami Condo Market

In today’s market (q3 2024) buyers are hesitant but persistent. They continue to circle the market, not walking away or deciding not to buy, but rather waiting for the perfect property and the right moment. They are unwilling to settle for anything less than perfect and are often frustrated by the lack of high-quality properties at digestible prices.

Buyers in Miamis different areas have a different reaction. In areas like Coconut Grove, we see a trend towards a primary home market, driven by people who want to establish a long-term base. This has created a situation where buyers don’t want to settle and sellers are unsure of their next steps. In Brickell, it might be a bit easier as the area is more focused on income generation, and there is more available inventory. As a general takeaway it is important to know that even though there appears to be a lot of inventory on paper, truly exceptional properties are increasingly rare.

Sellers’ State of Mind

What many agents experience is that owners who want to sell. want top dollar. They don’t care about comps, they have a number in mind and only for that number they want to sell. They are convinced they will find a buyer for that price as their property is unique (or perceived by them as unique). For many of the sellers its a very emotional process without looking at the numbers. Top brokers collaborate, creating an off-market system where some units never officially hit the market. Without good quality properties on the market and demanding buyers we increasingly turn to each other if we know of someone who has that property and might be open to talk. In Miami, especially in the higher-end market, who you work with truly matters.

We have noticed however that condos are staying longer on the market, especially older condos. Inventory is increasing and the market is slowing down. While every real estate cycle has moments of slowdown or stagnation, if you are a true seller today and if you really want to sell now, you need to adjust your prices. This is not to say you will be taking a hit, but don’t try to get that premium. It is up to us agents to have that conversation about moving from overly ambitious prices to more realistic ones. Interestingly, once prices are lowered slightly, the properties tend to sell.

What’s Driving All the New Projects and Who Is Buying Them?

People are seeking a particular lifestyle and are often end-users looking for their final or long-time home.  We are seeing a lot of new buyer registrations on our site, especially for Miami pre-construction projects. The Residences at Mandarin Oriental stand out to me because resort-level products at scale tend to perform best; we’ve conducted extensive studies on this. I also like Vita on Grove Isle., but it’s hard to say there’s one best option for everyone as it depends on individual preferences.

Most buyers are now primary users, with inquiries coming from nearly every country, though the majority are  still from the Northeast (of the US)  It’s less about nationality and more about the demographic profile. These buyers are sophisticated and want the best in class. They are not dependent on interest rates, and believe in Miami’s future. They see how the population, economy, and city are evolving and are confident in the long-term prospects.

We see a lot of wealth has been generated. Many of my buyers are affluent individuals who have done extremely well in the last few years. They have built profitable businesses that they are now selling and they are starting a new life in Miami, often purchasing large units. Meanwhile, investors with all kinds of budget, driven by fear of missing out (FOMO), are eager to buy but finding it increasingly difficult to secure properties below $2 million.

Factors Driving Rising Prices in the Luxury Condo Market

In areas like Coconut Grove, the urban lifestyle, walkability, shopping, restaurants, schools, and proximity to the water are major draws. Wealthy buyers seek an easy lifestyle,Wealthy buyers seek an easy lifestyle, preferring condos for their convenience, especially since they travel frequently and appreciate the ability to lock up and leave. They desire amenities and security and are willing to pay a premium for these features.

The Grove, along with several other areas in Miami, provides this desirable lifestyle. The new wave of luxury condos is designed with end users in mind, catering to those who seek an elevated lifestyle with top-notch services, amenities, privacy, and security. New construction condos come with a higher price tag, but also offer larger units and more services and amenities than ever before.

Looking Ahead: Market Trends for the Next 5 Months and Into Next Year

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