Everyone knows that the real estate market in South Florida has been crazy as of late. The most recent numbers show that sales of condos fell sharply in August, while sales of single-family homes fell more moderately.
Where are house sales at the moment?
With 3,238 purchases, the tri-county area (Miami-Dade, Broward, and Palm Beach) experienced a 4.1% decline in sales compared to August of previous year.
Despite remaining below the June record high of $650,000, the median sales price increased 2.1% to $620,000.
There were 22,675 sales of single-family homes in the state, a 1.1% decline. At $411,638 the median price fell somewhat. While Punta Gorda had the greatest increase at 14.1%, Naples had the most decrease at 22.6%. Accordingly, it’s a bit of a mixed bag.
Condo Market Suffers Heavy Setback
Condos and townhomes also scored poorly. Condo sales in South Florida fell 14.8% to 3,005 units sold, with a median price that remained unchanged at $330,000—still lower than the all-time high of $355,000 recorded in May. Sales of condominiums and townhomes in Florida fell 14.9% to 7,898 units, with a median price decline of 4.3% to $310,000.
Saying, “It wouldn’t be surprising to see this year’s new listings end up in the same neighborhood as those from 2018 and 2019,” Brad O’Connor, Chief Economist for Florida Realtors, pointed out that new listings are starting to match more with pre-pandemic trends.
Condo Sales Have Dropped—Why?
Stricter state laws regarding condo inspections, maintenance, and reserves have been imposed as a result of the fatal Champlain Towers South condo collapse in Surfside three years ago. These regulations have been particularly burdensome for older condo associations.
Many condo owners have decided to sell their units because of the increase in maintenance costs and assessments induced by these laws. However, there is an excess of older condos on the market because not all buyers are willing to deal with the expense and uncertainty associated with it.
District by District: Miami-Dade County:
The typical price of a single-family home went up to $640,000, while sales went up 1.7% to 964 units. Sales in the high-end ($1 million+) segment increased by 11.6%. There is still 4.7 months of inventory available, despite a 37% increase in active listings.
The sales of condos and townhouses fell 15.6% to 1,038 units, with a 23.1 percent decline in the high-end condo sector. A buyer’s market has emerged with an inventory level of 9.5 months.
County of Broward:
Houses on one level: 1,161 sales, a 1.4% decline, with a median price of just over $606,000. There is still a seller’s market, with 59% more active listings and 4.5 months of inventory.
Condos and townhouses: A 10% decline to 1,109 units sold, including a 27.8% dip in luxury sales. It is undeniably a buyer’s market, with an 8.3-month inventory and an increase of 98% in active listings.
A county in Palm Beach:
Home sales for single-family homes: 1,113 units sold at a median price of $617,500, a decrease of 10.9%. It is once again a seller’s market, with a 4.7% decline in the luxury market and 4.7 months of inventory.
Market Trends: Sluggish Home Sales in San Diego County This August
Condos and townhouses: Sales fell 19.5% to 1,066 units, with a 7.1% increase in the high-end condo market. The number of active listings has increased by 77%, resulting in 7.1 months of inventory, which is good news for buyers.
As Chairman of the Miami Realtors Association Gus Fonte put it, “The Federal Reserve’s recent interest rate cut should help fuel more buying activity in Miami’s high-demand market.”
The real estate market in South Florida is changing, though, because some homeowners are seeing increases to their assessments and fees. It will be interesting to see if this pattern persists throughout the fall.
