Miami continues to remain an incredibly diverse and dynamic market as we move further into 2015, with a particularly strong emphasis on luxury. However, as Douglas Elliman’s Q3 market report shows, gains in sales and prices have tempered since 2014, and in some areas, increases have turned to declines.

Miami Coastal Mainland

In Miami proper, where foreign money and an influx of investors and buyers from New York and the West Coast are fueling demand, sales in the overall market were up 5 percent year-over-year, while median sales price rose 22.2 percent to $259,950 – above the national average of $228,700, according to the National Association of Realtors.

Keeping up with demand, the area’s total inventory also jumped 3.4 percent from the same quarter last year.

However, in the Miami’s luxury sector, which is what the city is increasingly gaining global notoriety for, sales and prices are not performing as well as they once did.

Things are looking exceptionally bleak for high-end condominiums and town houses. Median sales price for the property types dropped 18.4 percent year-over year, and sales fell 8.1 percent. Some experts have claimed overbuilding in the sector is responsible for the declines. From Q3 2014, inventory for luxury condos is up a staggering 62 percent.

For luxury single-family homes, the losses were less pronounced, as sales declined negligibly – less than 1 percent – and median sales price actually inched up 1 percent to just over $1.2 million.