Miami Beach

Unfortunately for Miami Beach, the problems of the mainland are spilling over into the small island’s largely luxury market, with falling sales, falling prices and persistent inventory increases.

Among all property types in all price tiers, the median sales price was $375,000 in Q4 2015, which represents a year-over-year decline of 6.3 percent. The price decrease corresponds with a 20.4 percent decrease in sales and a 29.7 percent increase to inventory, which was driven by increases in the condo market.

Condos and Single-Family Homes

Condos in Miami Beach are cheaper than they were a year ago with prices falling 6.6 percent to $330,000, while sales fell 19.5 percent. Still, as is the case throughout the area, condo inventory jumped 28.8 percent year-over-year.

The city’s single-family market, which almost entirely qualifies as luxury, experienced a significant 47.9 percent jump in median sales price (to $1.6 million) and 36.7 percent increase to inventory, providing more ammunition for the Treasury Department in their efforts to crackdown on money laundering. The one of Miami Beach’s single-family market that did not improve was sales – from Q4 2014 to Q4 2015, sales dropped 27.9 percent.

Luxury

Improvements to median price in the luxury market can wholly be attributed to the single-family side, which saw prices rise an astronomical 119.3 percent year-over-year, from $5.7 million to $12.5 million (luxury condo sales price fell 9.4 percent to $2.4 million). Neither property type saw an increase in sales, with Douglas Elliman recording a 18.9 percent drop among condos and a 18.2 percent drop for single-family homes.

However, while single-family inventory dropped 7.1 percent, condo inventory leapt forward 62.8 percent.