South Florida Luxury Condos In A Buyers Market With 12-Month Supply

South Florida’s luxury condo market is currently in a buyers market with about 11.7 months of supply currently listed for sale in the tricounty region of Miami-Dade, Broward and Palm Beach, according to an analysis by CondoVulturesRealty.com.

In the first nine months of 2023, buyers purchased an average of 255 units per month for a total of nearly 2,300 units between January and September.

Luxury condos are defined as units listed for sale or recently sold for a price of at least $1 million each.

Based on the currently actively listings in the Multiple Listing Service – a database used by Realtors to market condos – buyers have an advantage over buyers based on the supply available for purchase.

Generally, six months of supply is considered equilibrium for the South Florida housing market. Less months indicates a sellers market and more months points to a buyers market from a negotiating perspective.

Currently, the average asking price for a condo is $3.5 million per unit compared to an average sales price of $2.4 million per unit. Pending sales went under contract at an average asking price of nearly $3 million per unit.

On a price per square foot basis, the average asking price for a condo is $1,343 psf compared to an average sales price of $1,055 psf. Pending sales went under contract at an average asking price of $1,187 psf.

To gauge buyer sentiment, we focus on the Days On Market (DOM) category to better understand how purchasers are proceeding. If buyers are optimistic, the number of days an active listing is on the market should be similar or less than the average period of time for deals to date. If buyers are bearish, the DOM category will show active listing sitting on the market longer.

To gauge seller sentiment, we focus on the spread between the average asking price and the average transaction price on a per unit and per square foot basis. Generally, a spread of up to 20 percent suggests that a seller is willing to negotiate to complete a deal. Anything greater than 20 percent suggests that sellers are overly bullish on their prospects of selling their units at a premium.

This information is believed to be accurate and complete but cannot be guaranteed or warranted. For more information, please call 305.865.5859 or visit CondoVulturesRealty.com

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