REGIONAL SPOTLIGHT–South Florida’s luxury residential market experienced a return to normal in 2022, after a historic 2021 that virtually has no precedent, according to The Keyes Company and Illustrated Properties’ new Luxury Report. However, those who sold $1 million-and-up single-family homes and condominiums last year benefitted from continued strong demand and extremely tight supply.
Miami-Dade, Broward, Palm Beach counties, along with the Treasure Coast and Southwest Florida, collectively recorded a 10.2% year-over-year drop in total $1 million-and-up single-family sales to 10,149 in 2022. The region’s luxury condo sector also saw a YoY decline of 11.9% in total sales to 5,501.
Across Miami-Dade, Broward, Palm Beach counties, the Treasure Coast and Southwest Florida, the average days on market for luxury single-family homes plunged by 33.1% to 75 from 2021 to 2022. The region’s high-end condo sector experienced a similar YoY decline in average days on market, falling 30.1% to 118. In the past, luxury listings often spent at least 300 days on the market before a sale.
Key highlights:
- Certain key categories even saw year-over-year pricing gains in 2022. The territories covered collectively recorded a 4.7% YoY increase in average high-end condo sales price to $2.41 million. That was fueled by Broward County, which posted a 26.2% year-over-year jump in average condo sales price to $2.19 million. In the luxury single-family sector, the regionwide average price per square foot rose 8.8% to $736.
- Miami-Dade County’s $1 million-and-up single-family sales declined by 21.5% year-over-year to 2,469 from 2021 to 2022. The average price per square foot rose by 7% to $807 during that span. Luxury condominium transactions dropped by 9.8% YoY to 2,624, with the average price per square foot increasing 8.8% to $1,098
- Brickell experienced a 27.6% surge in YoY high-end condo sales to 379 in 2022. Doral continues to be one of South Florida’s fastest-growing cities, with a 106.7% YoY jump in luxury single-family sales to 124
- In Broward, Parkland and Weston are where Broward-based families want to be, as the former posted a 16.8% YoY gain in luxury single-family sales to 292, and the latter saw a 35.6% YoY surge to 244. Fort Lauderdale and Hollywood combined to record a 2.9% YoY uptick in high-end condo sales to 497. The average sales price in those markets jumped by 29.8% to $2.33 million
- Palm Beach County’s price per square foot for luxury single-family sales increased by 8.8% YoY to $731, with the high-end condo price per square foot jumping 17.6% to $952
- The Boca Raton/Delray Beach submarket continues to be the focal point of high-end condo activity in the county, with 330 transactions in 2022
Major takeaway:
“The sharp year-over-year declines in average days on market reinforce that our region is in high demand,” Keyes President Christina Pappas said. “That demand, coupled with ongoing supply challenges, should help South Florida avoid significant drops in pricing. Our relocation specialists continue to get tremendous interest from residents of high-tax states who want to be here.”
Keyes/Illustrated CEO Mike Pappas added, “Luxury residential sellers and buyers grasp the concept of market normalization. They know that 2019 is a more appropriate bellwether than 2021 when evaluating how our region performed last year. Activity in the second half of 2023 should be particularly brisk as comfort with the current market grows.”
For more information, visit https://www.keyes.com/.
