Strong, Consistent Demand for South Florida with Increased Pricing & Increased Inventory, Reduced Marketing Times
Delray Beach and Fort Lauderdale Were Standouts; Miami Beach and Mainland Both Experienced Multi-Year Price Highs
Douglas Elliman Real Estate, the third largest residential real estate company nationwide, today releases the first quarter 2018 South Florida Market Reports, covering Miami Beach, Barrier Islands, Miami Coastal Mainland, Fort Lauderdale, Boca Raton, Delray Beach, Wellington, Palm Beach, Jupiter, and Palm Beach Gardens.
Overall, measured by price, sale, and inventory trends, the South Florida markets performed well in the first quarter of 2018, with Delray Beach and Fort Lauderdale as the best-performing markets, both with rising prices and sales. Both Miami markets – Beach and Mainland – experienced multi-year price highs with rising inventory as overall closed sales slipped. In addition, pending sales rose year-over-year across most markets, especially among deals signed in the first quarter. Luxury inventory trends were inconsistent across the region with a combination of rising and falling patterns by location and property type.
“What we saw this past quarter was a strong and consistent demand for South Florida real estate,” said Jay Phillip Parker, Douglas Elliman’s Chief Executive Officer for Florida. “Buyers saw the opportunity to jump into the market, as sellers seemed to decide that this was a good time to sell -- with the result being increased pricing governed by increased inventory and homes spending less time on the market.”
“A full assessment of the South Florida markets were generally good this quarter,” said Jonathan Miller of Miller Samuel Inc., the author of the reports. Although we saw inconsistent inventory trends across the region, with some markets being overpriced leading to inventory not ‘priced to sell,’ total pending sales generally rose year-over-year.”
“The South Florida market is baked in optimism and the outlook is positive,” added Parker.
Highlights of the Douglas Elliman Q1 Market Reports:
MIAMI BEACH/BARRIER ISLANDS HIGHLIGHTS
Overview
- While sales slipped from year ago levels, pending sales surged over the same period
- All price trend indicators rose, with median sales price rising for third consecutive quarter
- While listing inventory moved higher, marketing time fell sharply
- Distressed sales represented the second lowest sales share in the five years this metric has been tracked
- Seventh consecutive quarter with year over year rise in market share of conventional financing
- Luxury condo average square footage remained stable as price trend indicators showed mixed results and less supply
- Luxury single price trends skewed sharply lower after large decline in average sales size
Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price rose 11.7% to $430,000
- Average sales price increased 1.3% to $1,011,741
- Number of sales slipped 3.3% to 788
- Days on market was 80, down from 143
- Listing discount was 10.4%, up from 12.1%
- Listing inventory increased 9.4% to 6,748
LUXURY CONDO
- Median sales price slipped 5.4% to $2,862,500
- Days on market was 138, down from 207
- Listing discount was 11.5%, down from 13.1%
- Listing inventory fell 9.3% to 1,077 units
- Entry threshold began at $1,750,000
LUXURY SINGLE FAMILY
- Median sales price rose 45.1% to $6,275,000
- Days on market was 141, down from 261
- Listing discount was 17.9%, down from 20.4%
- Listing inventory jumped 49.7% to 247 units
- Entry threshold began at $4,250,000
MIAMI COASTAL MAINLAND HIGHLIGHTS
Overview
- Price trend indicators moved higher with median sales setting a 5-year record
- Median sales price rose year over year for the fourteenth consecutive quarter
- Listing inventory moved higher after six consecutive quarters of year over year declines
- Despite decline in closed sales, new pending sales surged
- Market share of distressed sales fell 80% in four years to a nominal market share
Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price increased 6% to $309,999
- Average sales price rose 7.5% to $435,469
- Number of sales fell 3.8% to 3,355
- Days on market was 51 down from 81
- Listing discount was 5.9%, up from 5.6%
- Listing inventory rose 12.5% to 11,459 units
LUXURY CONDO
- Median sales price rose 6.7% to $837,500
- Days on market was 84 days, down from 154
- Listing discount was 7.4%, down from 7.8%
- Listing inventory rose 9.2% to 2,767
- Entry threshold began at $530,000
LUXURY SINGLE FAMILY
- Median sales price jumped 17.9% to $1,415,000
- Days on market was 76 days down from 138
- Listing discount was 8.8%, up from 7.7%
- Listing inventory rose 15.4% to 1,066 units
- Entry threshold began at $922,000
FORT LAUDERDALE HIGHLIGHTS
Overview
- Price trend indicators moved higher as median sales price set 7-year record
- Number of sales surged as listing inventory slipped nominally
- Both condo and single family price and sales indicators posted large gains
- Luxury inventory for both condo and single family listings fell
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price increased 17.5% to $1,307,500
- Days on market was 169, up from 139
- Listing discount was 6.7%, down from 6.8%
- Listing inventory fell 16% to 289
- Entry threshold began at $950,000
LUXURY SINGLE FAMILY
- Median sales price rose 6.4% to $2,075,000
- Days on market was 163, down from 189
- Listing discount was 8.1%, down from 11.2%
- Listing inventory declined 7.8% to 331 units
- Entry threshold began at $1,460,000
BOCA RATON HIGHLIGHTS
Overview
- Condo and single family sales declined as listing inventory rose, slowing the pace of the market
- Marketing time and negotiability have remained remarkably stead for the past several years
- Highest condo median sales price in a decade as single family median sales price slipped
- Luxury price trend indicators for condos and single families were mixed
- Luxury condo supply rose sharply as single family supply post large decline
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price rose 1.6% to $792,500
- Days on market was 116 days, down from 136 days
- Listing discount was 7.3%, unchanged
- Listing inventory rose 30.5% to 398
- Entry threshold began at $525,000
LUXURY SINGLE FAMILY
- Median sales price declined 9.1% to $2,150,000
- Days on market was 134 days, down from 162
- Listing discount was 9.6%, up from 9.5%
- Listing inventory declined 25.8% to 419
- Entry threshold began at $1,250,000
DELRAY BEACH HIGHLIGHTS
Overview
- All price trend indicators for single family and condos increased
- Condo and single family median sales price for luxury and sales east of Federal Highway surged
- Sales moved higher as listing inventory slipped
- Pending sales signed in the first quarter surged
Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price surged 48.3% to $2,075,000
- Days on market was 126, up from 100
- Listing discount was 8.7%, up from 7%
- Entry threshold began at $1,319,000
LUXURY CONDO
- Median sales price rose 20.1% to $696,500
- Days on market was 88, down from 103
- Listing discount was 6.6%, up from 5.1%
- Entry threshold began at $385,000
WELLINGTON HIGHLIGHTS
Overview
- Median sales price for condos and single families moved higher
- Condo sales rose, overpowering listing inventory which declined
- Single family sales declined as pending sales jumped
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price rose 9.4% to $377,500
- Average square footage increased 8.4% to 1,996
- Days on market was 157, up from 132
- Listing discount was 3.7%, down from 5.5%
- Listing inventory rose 34.8% to 62
- Entry threshold began at $340,000
LUXURY SINGLE FAMILY
- Median sales price jumped 53% to $1,530,000
- Average square footage slipped 11.2% to 4,007
- Days on market was 262, up from 146
- Listing discount was 9.5%, down from 15.5%
- Listing inventory slipped 7% to 252
- Entry threshold began at $895,000
PALM BEACH HIGHLIGHTS
Overview
- Number of sales surged for both property types as median sales price slipped
- Condo inventory remained largely stable as single family supply fell sharply
- Luxury median sales price surged as listing inventory expanded
Key Trend Metrics (compared to same year ago period)
LUXURY CONDO AND SINGLE FAMILY
- Median sales price surged 34.1% to $10,025,000
- Days on market was 122, down from 239
- Listing discount was 14.6%, up from 13.2%
- Listing inventory rose 16.3% to 100
- Entry threshold began at $5,425,000
JUPITER / PALM BEACH GARDENS HIGHLIGHTS
Overview
Jupiter
- Single family price trend indicators for the overall and luxury markets boom
- Condo price trend indicators were mixed as sales slipped
Palm Beach Gardens
- Condo price trend indicators for the overall and luxury markets jumped
- Single family price trend indicators declined as sales stabilized
Key Trend Metrics (compared to same year ago period)
JUPITER SINGLE FAMILY
- Median sales price increased 11.9% to $500,000
- Days on market was 77, up from 73
- Listing discount was 6.5%, up from 5.1%
- Listing inventory declined 13.2% to 433
JUPITER CONDO
- Median sales price edged up 0.9% to $285,000
- Days on market was 46, down from 60
- Listing discount was 5.1%, up from 5%
- Listing inventory surged was unchanged at 318
PALM BEACH GARDENS SINGLE FAMILY
- Median sales price slipped 3.6% to $461,663
- Days on market was 83, down from 91
- Listing discount was 7.9%, up from 6.6%
- Listing inventory declined 12.1% to 540
PALM BEACH GARDENS CONDO
- Median sales price rose 9.1% to $240,000
- Days on market was 49, down from 59
- Listing discount was 4.5%, down from 5%
- Listing inventory rose 0.4% to 237
About Douglas Elliman Real Estate
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the third largest residential real estate company nationwide. With more than 7,000 agents, the company operates approximately 113 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado and Massachusetts. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.
