While there have been signs that Miami Beach’s luxury housing market is heading for a slowdown and possible price correction, it appears that not all high-end homes are performing badly.
According to new research out Thursday from Douglas Elliman Real Estate, single-family houses priced under $5 million are still drawing potential purchasers.
“Many buyers, particularly those with families, feel that they can get more for their money in single-family homes than they can in buying into a condo—more privacy, more space—without compromising on some luxury amenities like a pool, gym and outdoor space,” said Sofia Song, executive vice president for Douglas Elliman Real Estate.
As a result, this segment of the market saw an increase in sales in the second quarter of this year, compared with the previous quarter. These properties also spent less time on the market, according to Ms. Song’s analysis. She did not provide specific figures.
In contrast, sales of homes priced above $5 million have remained flat, with sellers discounting more heavily, according to Ms. Song. Buyers in that market have adopted a wait-and-see approach, postponing purchases against a backdrop of global economic uncertainty, stock market volatility and currency fluctuations in Latin America.
“While inventory has remained stable, there are just fewer buyers who are ready to transact,” Ms. Song said.
This trend is playing out as Miami’s luxury residential market appears to be resetting after years of heightened sales.
Luxury condos—referring to the top 10% of sales—spent an average of 119 days on the market in the second quarter, more than double the figure from a year ago, according to a recent market report by real estate appraisal and consultancy firm Miller Samuel for Douglas Elliman.
Sellers of high-end condos also offered bigger discounts amid increased supply. The average discount in the second quarter was 9.6%, compared with 8.8% in the same period in 2015.
Write to Gina Faridniya at gina.faridniya@dowjones.com