South Florida’s luxury real estate market saw ‘return to normal’ in 2022

South Florida’s luxury real estate market had fewer home and condo sales in 2022, described as a “return to normal” after the frenzy of 2021, a new report from The Keyes Company and Illustrated Properties shows.

The Luxury Report examined home and condo sales of $1 million or more in Miami-Dade, Broward, Palm Beach, Martin and St. Lucie counties, plus Lee and Collier counties in Southwest Florida.

There were 10,149 luxury single-family home sales in the region during 2022, a 10.2% drop from 2021. There were 5,501 luxury condo sales, an 11.9% year-over-year decline.

Pricing was mixed. The median luxury single-family home price dropped 7.1% to $1.625 million, while the median price for a luxury condo increased 3.8% to $1.68 million.

There were pockets of pricing surges. Broward County had a 26.2% annual increase in average condo sales price to $2.19 million. Miami’s Brickell neighborhood saw 379 luxury condo sales, a 27.6% jump. 

Miami-Dade County’s luxury single-family home sales dropped 21.5% and luxury condos sales declined 9.8%. Average price per square foot, though, increased by 7% to $807 for homes and 8.8% to $1,098 for condos.

“Luxury residential sellers and buyers grasp the concept of market normalization,” Keyes/Illustrated CEO Mike Pappas said. “They know that 2019 is a more appropriate bellwether than 2021 when evaluating how our region performed last year. Activity in the second half of 2023 should be particularly brisk as comfort with the current market grows.”

The report noted that the top three states for incoming luxury buyers were New York, Illinois and New Jersey. And average days on the market dropped more than 30% year over year to 75 days for single-family homes region-wide and 118 days for condos.

“The sharp year-over-year declines in average days on market reinforce that our region is in high demand,” Keyes President Christina Pappas said. “That demand, coupled with ongoing supply challenges, should help South Florida avoid significant drops in pricing. Our relocation specialists continue to get tremendous interest from residents of high-tax states who want to be here.”