BRG International’s newly released transaction data for the third quarter of the South Florida residential market provides analysis for Miami Beach, Sunny Isles Beach, Bay Harbour Islands, Bal Harbour, and Surfside.
Average condo sales price decreased overall in the third quarter in all neighborhoods, except Surfside, with sharp rises in the days on the market throughout the Miami-Dade County. The Miami Beach condo market saw the largest rise from 27 days to 121 days on the market. As season begins, Bal Harbour condos maintained the highest price per sf at $660. South Beach follows in second place with $647 per sf even with an 11% decrease from last quarter 2015. Miami Beach and Surfside were the only areas with significant increases in price per sf. On average Surfside condos outperformed all markets with the average price per sf increasing to $603, up 42.9% since last year, followed by Miami Beach's average of $565, an 11.9% increase. Surfside condos in the mid-beach area also reported the highest sales difference jump from 2015 to 2016 at 68.6%. Bal Harbour was the only neighborhood that broke the million dollar average sales price Q2 and Q3 for both years. The luxury condo matrix of all the areas combined showed a significant decrease in average sales price overall at 29.2%, a nearly million dollar decline in price since last year. The sharpest average sales decline for condos at -21.9% is represented in Sunny Isles, where the average price per square foot is $457 an 18.1% decrease from last year.
Median Sales Price measured in Q3 fell by 4.5% in all neighborhoods combined and the average price per sq. ft decreased from $1,407 to $1,038, a -26.4% difference from year to year. Miami Beach and Surfside were on different sides of the spectrum in terms of median sales price. Miami Beach reported a significant drop at -39.2% compared to Surfside rise to 27.5%, the only increase reported from all areas.
Single family homes saw overall adjustments and an increase in average sales price from $2,113,09 in Q1-2015 to $2,952,475 in Q3-2016. List price for active homes on the market drastically declined, however, from an average of asking price of $6,189,438 in 2015 to $3,515,035 in 2016. Home inventory skyrocketed to 153 active homes on the market for sale this quarter, up from a negligible 16 active homes reported in Q3-2015.
The number of closed sales is most significant in South Beach, Sunny Isles Beach and Miami Beach as inventory rises throughout the county; even as marketing time tripled in some of these upmarket areas. South Beach had the highest number of condos sold in the Q2 with 217 closed sales, followed by Sunny Isles Beach at 160 in Q3. Miami Beach reported the highest jump at from 15 to 80 this year. Though Surfside reported jumps in average sales price, price per sf and median sales price, they reported the least number of closed sales at 11 in Q3 followed by Bal Harbour and Bay Harbor Island at 22 and 21 closed sales in Q3, respectively. Luxury condo inventory in Miami Dade surged during high season Q3 to 1,523 (154 in 2015) spending 126 average days on the market. Condos in both South Beach and Miami Beach reported an average of 121 days on the market. Absorption Rate (Months) have increased by 79.4% in all areas combined and listing discounts for condos has increased by to 8.9% overall.
The average price for a luxury condo in Q3 is reported this year at $1,139,120 compared to $1,909,409 in 2015. The average sales price has been reduced to $2,604,824 at a -29.2% difference from Q3-2015.