Luxury residential market continues forward stride as supply crunch looms

by Lindsey Wells

South Florida’s rebounding luxury residential market is still going strong, with the third quarter of 2021 producing substantial year-over-year increases, according to a recent Keyes/Illustrated Luxury Property report. 

The report, produced by the Keyes Company and Illustrated Properties, shows that units sold in Miami-Dade County’s high-end condo sector surged to 653, a 181.5% year-over-year increase in key metrics. 

A total of 1,063 condos valued at over $1 million were sold in the tri-county area and Treasure Coast in the third quarter of 2021, a 138.9% year-over-year jump from the same time last year. The year-over-year average sales price remained flat at $2.16 million.

Sales of single-family luxury homes were also up across the region, increasing 33.5% year-over-year to 1,969. The year-over-year average sales price rose 6.7% to $2.83 million.

However, single-family homes and condos priced at more than $1 million in South Florida (and individually in Miami-Dade, Broward and Palm Beach counties) did not follow suit. This indicates that the lack of inventory to meet the pent-up demand for luxury residential property is impacting the market, according to the report.

Days on the market for luxury listings are averaging historic lows, with 52.3% and 20.6% year-over-year decreases for South Florida high-end single-family homes and condo listings, respectively.

“We are now one year removed from the luxury market beginning its resurgence from the pandemic essentially shutting down activity in spring 2020,” said Mike Pappas, president and CEO of Keyes and Illustrated. “Local trade-up buyers and relocation buyers from New York, California and many other states have quickly snapped up much of the high-end inventory since then. The intriguing question is: how soon can supply catch up?”

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