Yesterday we looked at the local markets where the median home price has risen the most this year. Nearly all of the markets on the list are considered luxury, a positive sign for a sector of the market that has been hurt by historic inventory levels.
Today we’re taking a look at the five areas where home prices have fallen the most, and the majority of those markets are also considered luxury. While the luxury market has shown signs of improvement, the numbers show that there is still some ways to go before the market fully rebounds.
“The market was clearly weaker at the top,” Jay Parker, CEO of Douglas Elliman Florida, said of the luxury market’s performance in the first quarter of 2017. “There was no smoking gun. We saw some better results than we did in 2016.”
Here are the five markets with the biggest dip in median home price in Q1 2017, according to Douglas Elliman.
1. Key Biscayne*:
Median single-family home sales price (year-over-year change): $2.62 million (-32 percent)
Number of sales closed: 4 (-50 percent)
Days on market: 152 (-28 percent)
*Note: Most other markets are on the list for their drop in condo price, but Key Biscayne saw a bigger drop in single-family home price (-32 percent) than in condo price (-6.5 percent). However, there were only four single-family homes sold, versus 31 condos sold. Coral Gables also made the list because of its dip in single-family home prices.
2. Pinecrest:
Median single-family home sales price (year-over-year change): $845,359 (-19.5 percent)
Number of sales closed: 42 (20 percent)
Days on market: 147 (43 percent)
3. Sunny Isles Beach:
Median condo sales price (year-over-year change): $329,500 (-17 percent)
Number of sales closed: 148 (11 percent)
Days on market: 158 (74 percent)
4. Coral Gables:
Median single-family home sales price (year-over-year change): $820,000 (-14 percent)
Number of sales closed: 119 (5 percent)
Days on market: 99 (-2.9 percent)
5. South Beach:
Median condo sales price (year-over-year change): $295,000 (-11 percent)
Number of sales closed: 271 (6 percent)
Days on market: 139 (53 percent)