According to data from the Palm Beach MLS, condo sales in Miami Beach have seen a drop off in volume year-over-year. Comparing January to September data from 2013 and 2014 shows that while active listings are about the same, the number of units being sold and the sales volume have dropped off. In 2013, 2091 condos had sold in Miami Beach by September. That number is down to 1,681 this year, a 19% decrease. The overall sales volume also dropped year-over-year. In 2013 sales volume stood at $1.161 billion, this year it is at $1.022 billion an 11% decrease.
The drop off in sales has not deterred sales prices though which have risen year-over-year. The average sale price for a Miami Beach condo was $555,412 at this point in 2013. This year the average sales price has climbed to $608,214 which is a 9% increase. Higher average sales prices with lower volume can be concerning to some, and indeed, average sales prices appear “bubble like” to some market analysts. However, these numbers also may be a result of a market attempting to recover and restabilize. The short sale wave that hit Miami Beach sent average sale prices down and volume numbers up. Perhaps we are now seeing short sales decrease and property valuations and sales return to more normalized values. As winter (a busy time for South Florida real estate) approaches, we will be sure to keep an eye on the real estate market and see where the numbers are headed.