Miami Real Estate Market Thrives in Q1-2024

Adriana Montbrun Key Biscayne and Miami Realtor

By Adriana Montbrun

Prices Surge Despite Growing Inventory and Sales Challenges

As a luxury waterfront expert in Miami, I have exclusive insights into the Q1-2024 market trends that every investor and homeowner should know.

Overall Miami Coastal Market

Overview

Q1-2024 data reveals a robust real estate market in Miami Coastal Mainland, FL, characterized by rising price trend indicators and notable shifts in sales and inventory metrics. Here are the key highlights and analysis based on the data provided:

Source: Douglas Elliman Data from MLS

Price Trends

Price trends in the Miami Coastal Mainland real estate market show significant growth, with the average sales price increasing by 13.9% quarter-over-quarter (QoQ) and 16.8% year-over-year (YoY). The average price per square foot also rose by 7.7% QoQ and 11.8% YoY, reflecting the region’s strong demand and increasing property values. Median sales prices followed a similar upward trajectory, indicating a healthy and appreciating market.

Source: Douglas Elliman Data from MLS

Sales and Inventory

Sales and inventory metrics reveal a mixed landscape. While closed sales decreased by 2.8% QoQ and 5.4% YoY, the listing inventory surged by 9.0% QoQ and 33.8% YoY, reaching 6,664 units. The months of supply increased by 6.2% QoQ, suggesting a more balanced market with a growing selection of properties available for buyers.

Source: Douglas Elliman Data from MLS

Market Dynamics

Market dynamics indicate some cooling, with the average days on the market rising by 16.4% QoQ to 64 days. However, the listing discount decreased to 3.7% from the previous quarter, down from 5.0% QoQ and 5.6% YoY, showing sellers receiving offers closer to their asking prices. These trends suggest a market that, while slightly slowing, remains competitive.

Miami Home Market

The single-family homes segment shows robust performance with the average sales price rising by 15.5% QoQ and 19.5% YoY, reaching $1,165,171. The average price per square foot increased by 9.4% QoQ, and the median sales price grew by 6.1% QoQ. The number of closed sales rose by 9.7% QoQ, despite an 18.8% increase in days on the market, indicating strong demand and appreciation in this segment.

Miami Condo Market

The condo market in Miami’s coastal urban core, including neighborhoods like Brickell and Edgewater, as well as nearby islands such as Key Biscayne, experienced moderate growth. The average sales price increased by 6.9% QoQ and 8.0% YoY to $644,297. The average price per square foot saw a 4.5% QoQ increase, while the median sales price remained stable QoQ but grew by 4.8% YoY. Despite a 2.8% decline in the number of closed sales QoQ and a 14.8% increase in days on market, the listing discount narrowed to 2.1%, reflecting a competitive market with rising values and strong seller positions.

Advice for Sellers

  1. Maximize Your Price: With prices soaring, list your property now to capitalize on high market values, especially if you have a ready-to-move-in home.
  2. Set Competitive Prices: Low listing discounts mean sellers are getting close to their asking prices. Be confident but competitive.
  3. Be Patient: Expect longer days on the market. Make your property stand out with staging and minor upgrades. Buyers are still on the fence and looking for deals.
  4. Emphasize Key Features: Highlight unique aspects like water views and proximity to luxury developments to attract buyers. Make sure your home looks and feels great.
Seize the opportunity in Miami’s thriving market to achieve a successful and lucrative sale.

Advice for Buyers

With Q1-2024 showing significant price increases in Miami Coastal Mainland, buyers should act swiftly to secure properties before prices rise further. Prepare financially by getting pre-approved for a mortgage to strengthen your position in this competitive market. With listing inventory up by 9.0% QoQ and 33.8% YoY, take advantage of the broader selection but be ready to move fast as desirable properties are still in high demand. Focus on areas with appreciating value, like single-family homes and condos with water views or proximity to new luxury developments such as St. Regis in Brickell and Waldorf Astoria in Downtown Miami . Grade A homes, meaning newer construction and excellent location, are still difficult to find. When they are listed, they quickly go under contract, when you see what you like, act fast.

Conclusion

All price trend indicators rose annually to reach new highs, while sales have declined for the past two years. Listing inventory expanded annually for the second time in three quarters.
The Q1-2024 Miami Coastal Mainland real estate market demonstrates robust growth in sales prices across all segments, reflecting strong demand and increasing property values. The increase in listing inventory and months of supply indicates a more balanced market, though the longer days on the market suggest a slight cooling off. Single-family homes perform exceptionally well, while the condo market shows moderate but consistent growth. Overall, Miami’s real estate market continues to attract buyers with its appreciating property values and dynamic living environment.

Luxury Waterfront Market

Demand Trends

  • The demand for luxury waterfront properties continues to surge in Q1-2024, with a notable 15% increase in inquiries compared to the same period last year.
  • International buyers from Latin America and Europe account for 35% of transactions, drawn by Miami’s cosmopolitan lifestyle and favorable investment climate.

Pricing Dynamics

  • Prices for waterfront properties in prime Miami neighborhoods have seen a steady upward trajectory, with the median sales price reaching $3.5 million, marking a 12% year-over-year increase.
  • To remain competitive, buyers should be prepared to offer at least 5-10% above the asking price, especially for properties in high-demand areas like South of Fifth and Key Biscayne.

Inventory Challenges

  • Inventory shortages persist in Q1-2024, with a 20% decrease in available waterfront listings compared to the previous year.
  • Sellers should work closely with their agents to strategically time their listings and maximize exposure through targeted marketing campaigns and exclusive networking events.

Lifestyle Factors

  • Beyond investment potential, buyers prioritize lifestyle amenities such as private docks, panoramic ocean views, and proximity to vibrant cultural and culinary scenes.
  • Sellers should highlight these unique selling points through professional staging, high-quality photography, and immersive virtual tours to capture the attention of discerning buyers.

Emerging Trends

  • Emerging trends in Q1-2024 include a growing preference for eco-friendly and technologically advanced properties, with a notable 25% increase in demand for homes equipped with solar panels and smart home automation systems.
  • Buyers are encouraged to explore green-certified properties and inquire about energy-efficient features to lower long-term operating costs and reduce their carbon footprint.

Advice to Buyers

  • Act decisively and be prepared to make competitive offers, backed by strong financing and pre-approval letters from reputable lenders.
  • Collaborate closely with your agent to identify off-market opportunities and leverage their local market expertise to negotiate favorable terms.

Advice to Sellers

  • Price your property competitively based on recent sales data and market trends to attract motivated buyers and generate multiple offers.
  • Consider staging your home to showcase its full potential and invest in professional photography and marketing materials to stand out in a competitive market.
In conclusion, the Q1-2024 Miami Luxury waterfront market presents both opportunities and challenges for buyers and sellers alike. By staying informed, leveraging local market insights, and working with a trusted real estate professional, investors can navigate the market with confidence and unlock the full potential of Miami’s luxury waterfront lifestyle.

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