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Thanks to Lower Prices, Buyers Return to South Florida

Downtown Miami sees most activity since 2014

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Sales in downtown Miami are at their highest since 2014, according to report.

gregobagel / Getty Images
Sales in downtown Miami are at their highest since 2014, according to report.
gregobagel / Getty Images

Lower prices on condominiums and single-family homes in South Florida have given the luxury real estate market a bit of a bump, according to a report Tuesday by ONE Sotheby’s International Realty.

Overall, properties valued at $1 million in Miami-Dade and Broward counties are selling for up to 20% less than their original price points, according to the mid-year report. And with those price cuts, which have been deeper for condos than for single-family homes, comes a decline in inventory.

More:At $9 Million, Fort Lauderdale Condo is Priciest Sale in the County

"Buyers came back in 2017, as a result [of] better pricing," Anthony M. Graziano, senior managing director for Integra Realty Resources, wrote in the report. The "total number of transactions was strong on the first half, particularly in the single-family side. Buyers are executing on deals and negotiating, sellers are adjusting the pricing."

Sales in downtown Miami are at their highest since 2014, the report said, largely because of the price adjustments. Waterfront homes are selling for an average $374 per square foot, while those not on the water are about $212 a square foot, versus $428 and $198 per square foot, respectively, in 2016. In the county overall, inventory is down for single-family homes, and sales were stronger in the second quarter of 2017 than in the first.

More:Buyers Lean Toward Affordable Luxury in South Florida

There are some standout areas where pricing is going against the general trend. On the waterfront, Miami Beach’s single-family home market saw an increase of up to 31% in prices, and Gables Estates and Key Biscayne were also leaders. For non-waterfront homes, the towns of Golden Beach and Bal Harbour were also strong.

In the condo market, total transactions remained steady, the report said.

"As predicted, pricing dropped from 2016," according to the report. That "offered great buying opportunities in Miami’s resale condo market. Much of this could be attributed to the launch of several pre-construction projects and a readjustment of pricing."

Waterfront locations where prices are up include Coconut Grove and Surfside, the report said. Again, Bal Harbour had the strongest market during the second quarter, with a slight increase in sales and 28% higher prices.

More:U.S. Home Prices Hit Record High in June, Redfin Says

In Broward County, which is north of Miami-Dade and features towns like Fort Lauderdale and Pompano Beach, pricing is more stable than its southern neighbor, the report said.

"It still holds up well and continues to have much better value than what you get in Miami-Dade," according to Mr. Graziano.

Single-family homes in Broward are up to 50% less expensive than in Miami-Dade, according to the report. The number of single-family homes sold there, both on the water and inland, was down from 2016. The average price for a waterfront home was $185 per square foot, while non-waterfront properties were about $146 a square foot. East Fort Lauderdale and Bay Colony are two growth areas, the report said.

On the condo side in Broward, which is a much smaller market than that of Miami-Dade, things were mostly stable. East Fort Lauderdale was also ahead in that market, with gains of 32% of its average price per square foot, the report said.