The South Florida residential real estate market experienced varied trends in the fourth quarter of 2023, marked by rising median prices, fluctuating sales, and an increase in inventory. This period, as reported by Douglas Elliman and analyzed by Jonathan Miller of Miller Samuel, presented a complex picture of the region's housing dynamics.

Miami Coastal Mainland

• Sales: There was a 9% decrease in residential sales, totaling 2,853 closings. Single-family home sales declined by 5.5% to nearly 1,300 closings, while condo sales dropped by 12% to approximately 1,600 sales.
• Median Sale Price: The median sale price for single-family homes rose by almost 11% to $669,300. Condo prices increased by 5% to $435,000.
• Inventory: Inventory for single-family homes decreased by 5% to 2,222 listings, but condo inventory rose by nearly 19% to 3,900 listings.

Miami Beach and Barrier Island Markets

• Sales: Residential sales fell by 12.5% to about 740 closings. Single-family home sales jumped by 38% to 76 closings, but the median sale price fell by 29% to $2.5 million. Condo sales decreased by 16% to 661 sales.
• Inventory: Inventory for single-family homes grew by nearly 17% to just over 400 listings, and condo inventory increased by 19% to nearly 3,000 listings.

Coral Gables

• Sales: Single-family home sales were almost flat, with a slight increase to 64 houses sold. Condo sales rose by 12% to 55 closings.
• Median Sale Price: The median price for single-family homes surged by 27% to nearly $2 million. Condo prices were up by 12% to $625,000.
• Inventory: Inventory for single-family homes decreased by 18% to 149 listings, while condo inventory rose by 73% to 104 listings.

Fort Lauderdale

• Sales: Single-family home sales increased by 10% to 377 closings. Condo sales fell by 9.5% to 370 closings.
• Median Sale Price: The median price for single-family homes rose by about 6% to $570,000. Condo prices increased by 21% to $485,000.
• Inventory: Inventory for single-family homes and condos rose by 11% and 68%, respectively.

West Palm Beach

• Sales: Single-family home sales declined by 10% to 315 closings. Condo sales increased by 4% to about 500 closings.
• Median Sale Price: The median price for single-family homes grew by 8% to $515,000. Condo prices rose by 11% to $265,000.
• Inventory: Inventory for single-family homes and condos increased by 4% and 50.5%, respectively.

Palm Beach

• Sales: Single-family home sales rose by 12% to 19 closings. Condo sales increased by 39% to 39 closings.
• Median Sale Price: The median price for single-family homes plummeted by 46% to $8.8 million. Condo prices fell by 12% to $1.1 million.
• Inventory: Inventory for single-family homes and condos increased by 69% and 24%, respectively.

Boca Raton

• Sales: Single-family home sales decreased slightly by 3% to 398 closings. Condo sales were nearly flat with a slight decrease to 526 closings.
• Median Sale Price: The median price for single-family homes jumped by 20% to $920,000. Condo prices increased by 5% to nearly $370,000.
• Inventory: Inventory for single-family homes and condos rose by 13% and 45%, respectively.

The South Florida residential market in Q4 2023 shows a complex interplay of factors. Rising median prices across most areas indicate a robust market, but the varied sales trends suggest a more nuanced picture. The increase in inventory, particularly in condos, may offer more options for buyers, potentially stabilizing the market. However, the high median prices, especially in areas like Coral Gables and Palm Beach, reflect the continued demand for luxury properties.

The market's future trajectory will likely depend on broader economic factors, including mortgage rates and the Federal Reserve's monetary policy. The optimism surrounding potential rate cuts could invigorate the market further. As a real estate professional, it's crucial to stay attuned to these shifts and advise clients accordingly.

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