Home sales in South Florida dropped by double digits in 2023. What happened to prices?
Homes sales keep falling in South Florida, continuing a downward spiral from the buying frenzy in the early years of the pandemic. But one thing keeps climbing: prices.
South Florida home sales in 2023 fell by double digits from 2022, according to a Miami Association of Realtors housing report released on Friday.
Miami-Dade County saw 24,154 single-family home and condo sales in 2023, down 26% from 32,627 sales in 2022. Broward saw the same trend, with 27,070 transactions last year, down 17% from 32,573 transactions in 2022.
It’s a big fall from the activity seen just a few years ago. In 2021, Miami-Dade had 39,394 sales and Broward had 40,423.
Throughout last year, real estate analysts and agents often blamed the fall in sales on a series of factors, including interest rates that kept many homeowners in place, limited existing and new supply, and high prices.
And don’t forget national trends. Layoffs in tech and finance, as well as inflation, also played a role in the slowdown.
Still, sales prices remain high in South Florida, largely thanks to buyers purchasing the best of what’s available, usually at higher prices.
As of December, Miami-Dade has a median sales price of $610,000 for single-family homes and $410,000 for condos, about 15% and 9% higher, respectively, than a year ago. In Broward, buyers see houses going for a median sales price of $570,000 and condos $275,000, both about 8% more than than in 2022.
More home listings in Miami-Dade and Broward
The good news for home hunters?
More listings are coming online, giving buyers a wider selection of houses and condos. Miami-Dade has 4.3 months of supply of houses and 6.8 months of condos; Broward has 3.4 months of supply of houses and 5.3 months of condos.
Although each county has about a month more supply of houses and condos than in 2022, that still falls short of a balanced market. A balanced market consists of six to nine months of supply, with anything under six months favoring sellers and anything over nine months favoring buyers.
How South Florida buyers are paying for homes
One thing remains certain — cash is still king.
Nearly 40% of all South Florida transactions in December closed with dinero, higher than the 29% national average.
Real estate experts predict more favorable conditions for homebuyers in 2024, many predicting dropping interest rates and more supply coming online.
Although prices have continued to climb, budget-conscious buyers still have options in South Florida for residences listed well below the median sales prices.
This story was originally published January 20, 2024 at 5:00 AM with the headline "Home sales in South Florida dropped by double digits in 2023. What happened to prices?."
