South Florida’s luxury residential market recorded significant quarterly gains in the past three months, according to The Keyes Company and Illustrated Properties’ new Luxury Report. The first-quarter metrics hint at an active remainder of 2023.
Key findings:
- Miami-Dade, Broward, Palm Beach counties, the Treasure Coast and Southwest Florida collectively recorded a 19.7% year-over-year decline in $1 million-and-up single-family sales to 2,077 in the first quarter of 2023, while the high-end condo market posted a 32.7% year-over-year drop in transactions.
- The region’s single-family sector had a 16.9% quarter-to-quarter gain in $1 million-and-up sales, from 1,776 to 2,077.
- Luxury condo transactions jumped from 812 in the fourth quarter of 2022 to 1,178 in the first quarter of 2023.
- All five geographic areas had transaction upticks in both sectors during that time frame.
- Miami-Dade County’s $1 million-and-up single-family sales climbed 5.9% from the fourth quarter of 2022 to 430 completed transactions in the first quarter.
- For high-end condos, sales increased by 3.8% to 411 during the same span.
- Coral Gables stood out as the most active high-end single-family market, with $1 million-and-up transactions jumping from 55 in the fourth quarter to 84 in the first quarter – and the median sales price growing 7.2% during that timeframe.
- Miami Beach had the most luxury condo sales activity in the county, with 104 completed sales (up 25.3% from the fourth quarter).
- Broward County recorded year-over-year declines in the first quarter of 2023. However, $1 million-and-up single-family transactions rose by 6.4% (347 sales) quarter-to-quarter, and luxury condo sales surged by 21.6% (118 sales) in the same timeframe.
- Palm Beach County high-end condo sales skyrocketed by 52.1% from the fourth quarter of 2022 to the first quarter of 2023 (219 completed transactions), while $1 million-and-up single-family sales increased by 13.4% in the same span (645 sales). The average luxury condo price per square foot rose 11.8% year-over-year to $1,018.
- The Boca Raton/Delray Beach submarket more than tripled the next-highest submarket with 76 first-quarter condo closings at or above $1 million. The same holds true for luxury single-family, with Boca Raton/Delray Beach combining for 265 first-quarter sales (Jupiter’s 83 transactions ranked as the county’s second-highest).
The takeaway:
“Near-term market conditions are demonstrably improving in the luxury sector,” Keyes president Christina Pappas said. “The consistency of these quarterly increases, from Miami-Dade County to Southwest Florida and the Treasure Coast, shows that our region is accommodating the different preferences of a wide range of high-end buyers.”
The Treasure Coast was the only geographic area covered in this report to generate a year-over-year gain in luxury single-family sales. That is largely driven by Stuart, which had substantial luxury transaction and pricing gains. Southwest Florida had an encouraging jump of 35.6% year-over-year to 396 in the first quarter of 2023 and a 152.2% surge when compared with the previous quarter.
“There is now a growing comfort shared by luxury sellers and buyers about the state of South Florida’s market,” Keyes/Illustrated CEO Mike Pappas said. “That bodes well for the rest of 2023, and we should see year-over-year increases return in upcoming quarters.”
To see the full report, click here.
