Are condo sellers down on their luck? Miami-Dade and Broward feel the pressure on deals
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Condo crisis in South Florida
Aging buildings, new laws and spiraling fees and assessments have affected condominium residents and the real estate market in Miami-Dade and Broward.
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Condo sales in South Florida dipped again in July, a tough situation for sellers eager to escape a growing mountain of financial pressures that include higher HOA fees and assessments.
Miami-Dade County saw 1,114 condo deals, down 2% from 1,141 in July 2023, according to the latest Miami Association of Realtors monthly home sales report.
Broward County sales fell 5% with 1,132 deals during the same time frame.
The silver lining?
Condo buyers paid the same prices, or slightly higher, despite the financial woes facing many associations. Miami-Dade had a median sales price of $424,950, about 1% higher than last year, and Broward had a median sales price of $272,500, up 3% from July 2023.
Prices held steady as buyers gravitated toward newer buildings, which pushed up overall median sales prices, said Eloy Carmenate, real estate agent with the brokerage firm Corcoran Group.
Owners are dealing with surging HOA fees, special assessments, expensive buildup of reserves and new laws overseeing aging structures after the collapse of the high-rise in Surfside three years ago.
“What we’re finding is people are flocking to the new buildings that don’t have to deal with recertifications or special assessments,” Carmenate said. “Insurance is going to be less. Special assessments are going to be less.”
READ MORE: Condo HOA fees jumped 60% in South Florida in past 5 years. Why higher costs are ahead
Strong market for houses
South Florida’s saving grace? Single-family homes. They’re propping up what could have been a sagging real estate market in Miami-Dade and Broward.
The number of single-family home transactions rose 11% year-over-year, to 1,008 from 910. Broward saw an 8% uptick, up to 1,131 from 1,052 deals.
As a result of strong sales among single-family homes, total sales rose by 4% in Miami-Dade to 2,122 and 1% in Broward with 2,263 deals.
The Federal Reserve “is showing signs of another decrease in September. These are all healthy signs. More sellers are going to get into the market,” said Darin Tansey, real estate agent with Douglas Elliman. “With these numbers that are positive month-over-month and year-over-year, it’s a sign good things are here to come.”
House hunters are so willing to pay a premium for their own patch of land in South Florida that Miami-Dade has a new record median sales price of $670,000, up 6% from a year ago, and Broward has a median sales price of $625,000, up 4% from last July.
Housing supply in Miami and Broward
Inventory also is swinging in favor of sellers.
Miami-Dade has 4.4 months of houses and 9.1 months of condos. Broward has 4.4 months of houses and 8 months of condos. A balanced market consists of 6 to 9 months of inventory. Anything under 6 months benefits sellers and anything over 9 months favors buyers during negotiations.
Many buyers — some from the northeast still following the corporate expansions, Carmenate said — are happy to pay in cash. Miami-Dade saw 36% of deals close in cash and Broward saw 35%. Both were higher than the national average of 27%.
This story was originally published August 23, 2024 at 5:00 AM.
