SOUTHEASTERN

“Most of my business takes place on the Island of Palm Beach, with the additional business done in the surrounding areas. The momentum at the end of 2022 and the beginning of 2023 is starting to feel much more like it did prepandemic. Our “pre covid” selling season traditionally sees 70% of our sales from February through May. I expect that to be what we see in 2023 instead of the past couple of years when we were selling year-round. With inventory still tight, I expect prices to remain stable but likely drop 10% or so off the previous comps last year. I expect West Palm Beach and the surrounding areas to see slightly more significant declines. Still, due to the influx of people to the area, we are far more insulated from anything dramatic. I expect sales volume to be down 30-40% YOY, not due to a lack of demand but a lack of supply. At our current pace of supply growth, we are unlikely to see the inventory levels on Palm Beach at pre covid levels for many years, if ever again.”

– Gary Pohrer, Douglass Elliman Real Estate, Palm Beach, FL

“Miami has been in the spotlight of national attention. The influx of new residents since 2020 has been unprecedented. Professionals from many market sectors pounced on the opportunity to effectively work from home in a location that offers a highly desirable climate, cultural scene, culinary playground – the list goes on. Private equity, family, and even some large corporate offices followed suit, kicking off the most significant luxury construction boom in the city’s history. The Magic City is quickly transforming into the City of the Future.

Each sector of the luxury real estate market will perform in its unique way. The demand for $1-2M properties remains high, though a marginal inventory will likely keep values constant. As we reach the higher markets, softened demand and inflated asking prices will hurt volume and values. However, the few exceptional properties on the market will continue to see record-setting values – that is, after willing buyers haggle the astronomical asking prices back into our stratosphere.”

– Seth Feuer, Compass, Miami Beach, FL