Done Deals: Keyes/Illustrated Luxury Report: South Florida Sees Notable Incremental Gains in Q1 2023

Sunday, April 23, 2023

Keyes/Illustrated Luxury Report: South Florida Sees Notable Incremental Gains in Q1 2023

Christina Pappas

MIAMI and PALM BEACH, FL – South Florida’s luxury residential market recorded significant quarterly gains in the past three months as the region continues to move forward from the pandemic-era frenzy, according to The Keyes Company and Illustrated Properties’ new Luxury Report.

The first-quarter metrics hint at an active remainder of 2023.

Mike Pappas

Miami-Dade, Broward, Palm Beach counties, the Treasure Coast and Southwest Florida collectively recorded a 19.7% year-over-year decline in $1 million-and-up single-family sales to 2,077 in the first quarter of 2023, while the high-end condo market posted a 32.7% year-over-year drop in transactions.

However, the region’s single-family sector had a 16.9% quarter-to-quarter gain in $1 million-and-up sales, from 1,776 to 2,077.

Luxury condo transactions jumped from 812 in the fourth quarter of 2022 to 1,178 in the first quarter of 2023.

All five geographic areas had transaction upticks in both sectors during that timeframe.

“Near-term market conditions are demonstrably improving in the luxury sector,” Keyes President Christina Pappas said. “The consistency of these quarterly increases, from Miami-Dade County to Southwest Florida and the Treasure Coast, shows that our region is accommodating the different preferences of a wide range of high-end buyers.”

The Treasure Coast was the only geographic area covered in this report to generate a year-over-year gain in luxury single-family sales.

That is largely driven by Stuart, which had substantial luxury transaction and pricing gains. Southwest Florida had an encouraging jump of 35.6% year-over-year to 396 in the first quarter of 2023 and a 152.2% surge when compared with the previous quarter.

“There is now a growing comfort shared by luxury sellers and buyers about the state of the South Florida’s market,” Keyes/Illustrated CEO Mike Pappas said. “That bodes well for the rest of 2023, and we should see year-over-year increases return in upcoming quarters.”

Other notable findings in the first quarter luxury report include:

Miami-Dade County’s $1 million-and-up single-family sales climbed 5.9% from the fourth quarter of 2022 to 430 completed transactions in the first quarter. For high-end condos, sales increased by 3.8% to 411 during the same span.
Coral Gables stood out as the most active high-end single-family market, with $1 million-and-up transactions jumping from 55 in the fourth quarter to 84 in the first quarter – and the median sales price growing 7.2% during that timeframe.

Miami Beach had the most luxury condo sales activity in the county, with 104 completed sales (up 25.3% from the fourth quarter)
After being the only geographic area covered in the report to post year-over-year transaction increases for both luxury single-family homes and condominiums in 2022, Broward County joined its neighbors by recording year-over-year declines in the first quarter of 2023.

However, $1 million-and-up single-family transactions rose by 6.4% (347 sales) quarter-to-quarter, and luxury condo sales surged by 21.6% (118 sales) in the same timeframe
Palm Beach County high-end condo sales skyrocketed by 52.1% from the fourth quarter of 2022 to the first quarter of 2023 (219 completed transactions), while $1 million-and-up single-family sales increased by 13.4% in the same span (645 sales). The average luxury condo price per square foot rose 11.8% year-over-year to $1,018.

The Boca Raton/Delray Beach submarket more than tripled the next-highest submarket with 76 first-quarter condo closings at or above $1 million.
The same holds true for luxury single-family, with Boca Raton/Delray Beach combining for 265 first-quarter sales (Jupiter’s 83 transactions ranked as the county’s second-highest)