ONE Sotheby’s International Realty released its annual real estate market report this week, detailing last year’s performance of Miami’s real estate market, and particularly intriguing insights into the area’s luxury single-family market.

Here are a few of the report’s most relevant findings:

Single-family luxury sales vs. inventory

In 2012, almost 650 single-family homes priced $1 million and above were sold in Greater Miami, compared to a for-sale inventory of 921; otherwise said, 70 percent of the luxury single-family inventory was sold that year. Numbers from last year describe a different market. For one, at 1,693 available homes, the for-sale inventory was much more robust. Demand relative to inventory was also down. While in 2016 880 homes priced above $1 million were sold, that only amounts to 52 percent of what was available. ONE Sotheby’s numbers illustrate what many have been saying for the last year (and some even longer): Miami’s luxury market is overbuilt.

• Luxury Single-Family Home Sales
• Luxury Single-Family Homes For Sale

We’re running out of waterfront properties

For the first time since before 2012, the amount of for-sale waterfront homes in Greater Miami was less than 1,000 – which is not terribly surprising, considering that there is virtually no undeveloped oceanfront land left in Greater Miami. Still, that didn’t stop demand. The number of waterfront homes sold increased 22 percent from 735 in 2015 to 899 in 2016. The most startling discovery of ONE Sotheby’s report, however, is that despite inventory disappearing and demand increasing, prices were actually down year to year. In 2015, waterfront homes, per square foot, cost $472. It was down to $428 last year.