Sales of luxurious properties are dropping in the super-exclusive market of Palm Beach, as well as Miami and Miami Beach.
South Florida won the most from the frantic activity in the real estate market during the pandemic, when the demand for housing surged along with the prices. Two and a half years later, everything is getting back to normal.
In Palm Beach, where the highest-value real estate deals in the USA are signed, the sales of both single-family houses and apartments reduced significantly in the third quarter, down to 65% and 52% respectively compared to last year. This data was published in a recent Corcoran report.
The median price of a single-family house on the island reached $10.1 million, showing a 10% growth year-on-year. The median price of apartments grew by 36% over the same time, up to $784,000.
The median selling price in the luxury segment that accounts for 10% of sales dropped by 31.7% in Palm Beach (down to 14.67 million) compared to three months ago. The year-on-year decrease was almost 15%.
The number of high-end homes sold in Palm Beach in the third quarter also reduced by 60% compared to the second quarter and by 45.5% compared to the same period last year. This is aligned with the general trend of a smaller number of deals.
The situation is similar in the market of single-family homes in Miami Beach, where sales of up-market mansions dropped by 33.3% quarter-on-quarter and by 52.4% year-on-year. The median selling price of a single-family home reduced to $13.9 million (compared to $21 million last quarter and $18 million in the third quarter of 2021).
170 deals on luxurious mansions were signed in Miami in the third quarter, which is 18.7% less than in the second quarter and 27% less than last year. The prices reduced too. The median selling price dropped to $2.7 million, which is 11.5% less than over the past three months and 1.2% less than in the third quarter of 2021.