New data released by the Miami Realtors Association presents an illuminating snapshot of the ongoing transformation in Miami’s condominium market, further demonstrating the wide-ranging impact of the city’s gentrification wave.
From April 2022 to April 2023, there was a significant decrease of 44.4% in the number of closed condo sales, dropping from 2,199 to 1,222. This aligns with the earlier observation of an approximate halving in condominium closings since the increased scrutiny by banks following the Surfside collapse.
Interestingly, cash sales — a common indicator of investment buyers — also saw a slight reduction. The percentage of sales paid in cash dropped by 3.8%, moving from 52.4% to 50.5%. This shift suggests a slight cooling in the investor market.
Despite the sales slowdown, the median sale price of condos has actually risen over this time period. In April 2023, the median sale price for condos was $414,900, reflecting a year-on-year increase of 6.4% from $390,000 in April 2022. This shows that while sales are slower, property values are not dropping.
As a result of these changes, the total dollar volume of condominium sales fell by a striking 48.2%, from $1,547,117,445 in April 2022 to $802,124,466 in April 2023. The percentage of the original list price received by sellers also saw a slight dip, down from 99% to 96%.
Another noteworthy change is the increase in the median time taken to finalize a sale. The median time to contract rose by 48% from 25 days in 2022 to 37 days in 2023. Similarly, the median time to sale grew from 69 days to 75 days, an increase of 8.7%. These trends suggest a lengthening sales cycle.
The data also shows a significant increase in the active inventory of condos, rising 34.6% from 4,711 to 6,342. Correspondingly, the months’ supply of inventory more than doubled, jumping from 2 months in April 2022 to 4.9 months in April 2023, reflecting an increase of 113%.
All these trends indicate a shift towards a more balanced market after a prolonged period of high demand. While gentrification has increased prices, the market is seeing a slowdown in sales, an increase in inventory, and a longer sales cycle. It’s a shift that stakeholders — from HOA and condo presidents to realtors and prospective buyers — should be fully aware of as they navigate the ever-evolving landscape of Miami’s condominium market.