Miami Beach’s condo market continues to attract buyers as its desirable location and offerings entice many.
Miami Beach is very desirable, said Berkshire Hathaway EWM Realty President Ron Shuffield. “We have so many people from all across the world that want to experience the beach, Miami Beach, in particular, South Beach, even more particularly. I think that zeal will continue from buyers, whether outside the country or whether from the Northeast, West or wherever they’re coming from.”
From Jan. 1-Feb. 26, said Mr. Shuffield, 2,091 condos in Miami Beach were on the market. When looking back, “we had 1,593 condos on the market on Feb. 26 of 2024; that reflects a 31% increase.” However, the number of sales is down 27%. This increase in inventory and decrease in sales leads to more months of supply.
For a balanced market, said Mr. Shuffield, a six- to nine-month supply is kept available. A year ago there was 12 months of supply. Now there are 23 months of supply.
“We’re seeing the months supply pretty much doubling for most of our segments of the market – whether it’s price or whether it’s location – because we just have started to build inventory again,” he said, “which is a healthy thing. We needed more inventory.”
Additionally, despite the decrease in sales, the median price is still increasing.
“A year ago, the median price was $439,000,” he said. “This year, the median price is $515,000, which reflects a 17% increase in value. This is something that you’re reading, not just in our market but a lot of markets across the country. We still seem to be increasing in value, but the sales are slowing and the number of offerings are increasing.”
Of the 2,091 condos on the market in Miami Beach, he said, 44% are under 500,000 and 71% are under $1 million. This means two-thirds of the inventory on Miami Beach is priced under a million dollars.
“We are seeing more negotiation between buyers and sellers,” said Mr. Shuffield, “which is a healthy thing to happen. We’re pleased to see that because we have not had that until recently. What’s causing that increased negotiation to happen is that our buyers are now having more choices, and that will continue as long as we have increasing inventory, and it’s not just Miami Beach condos, it’s all across the market.”
In comparison, single-family homes inventory is tighter than condos due to there being fewer homes and not having any land left to build a single-family house.
“Pretty much”, he said, “if you want to build a new home, whether in the Beach, Coral Gables, Pinecrest, or [elsewhere], you almost have to tear a house down to build a new house. Whereas in condos, we’re getting many new offerings, with all this new construction that’s been happening this year.”
One new site of construction in Miami Beach that has been standing out to the public is Five Park, said Mr. Shuffield. “Five Park has just been finished, and so it’s just now closing. Some people are buying in that building…. It’s located at 500 Alton Road. There are 98 units in the building, and it’s 48 stories.”
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