Miami Beach home sales slid by more than one-fifth over the past year as activity continues to slow down from the frantic and unsustainable pace witnessed in the previous three years.
Sales fell 21.5% to 663 in the final three months of last year compared with the same period during 2015, according to a report released Thursday by Miller Samuel and Douglas Elliman Real Estate. Much of the decline in sales was associated with the condo market.
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At the same time, listing inventory increased 16.4% to 6,016, but supply outpacing demand did not place downward pressure on sales prices as usual market trends would indicate. Indeed, the median sales price increased 5.3% to $395,000 over the year.
That was because like in Manhattan, many condo sales that entered into contract in the boom years of 2013, 2014 and in part 2015 are only just closing now as the buildings are completed, skewing the sales price date, according to the report.
Elsewhere, the data shows signs that the market is starting to weaken, with the average number of days a property spent on market rising from 49 to 125, while the listing discount (the change from final listing price to contract price) was 9.2%, up from 7.7%.
The market was softer at the top with the median sales price in the luxury condo sector (defined as the top 10% of sales) dropping 2.1% to $2.35 million, while the average number of days a property spent on the market almost tripled from 62 to 172 and the listing discount rose from 7.2% to 12.7%.
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"The market is softer at the top and stronger as you move lower in price," said Jonathan Miller, chief executive of Miller Samuel and author of the report. "We have inventory rising, listing discount falling and sales falling even though prices are rising. The market is in an adjustment period from the frantic pace of 2013/2014 to a more stable trend."