Looking to buy a condo in Miami-Dade County? You now have the upper hand. Here’s why
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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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For the first time in years, it’s a buyer’s market for condominiums in Miami-Dade County.
The only problem? Fewer people seem to be buying.
Miami-Dade has 9 1/2 months of inventory of condos, the highest amount since February 2021 when the county had 10.2 months of supply, according to a new housing report from the Miami Association of Realtors. A balanced market consists of six to nine months of inventory, with anything under benefiting sellers and anything over favoring buyers.
As inventory grows, annual prices slipped for the first time in years. Miami-Dade has a median sales price of $415,000, down from $416,000 in August 2023. Condo prices have been sinking for the past several months.
“Giving the looming 2025 deadline for the Florida condo associations to comply with the new state following the Surfside condo collapse, this probably suggests that the vintage older units are starting to sell at lower and lower prices while new condos are simply cost prohibitive,” said Peter Zalewski, founder of real estate consulting firm Condo Vultures.
MORE: Florida condos need a spending plan to make repairs — but there’s an issue with the law
The changes come at a time when condo owners are dealing with surging condo fees, special assessments and state requirements to build up reserves for major repairs.
Condo assessment fees, for instance, have ballooned by 59% since 2019 in Miami-Dade. Combined with special assessments, the financial pressures have priced out many owners, forcing some to take on second jobs, return to the workforce or consider selling and moving.
The increasing costs have been a top concern for housing experts and local leaders, and have even reached Gov. Ron DeSantis as more people call for a reevaluation of condo legislation.
Condo buyers still have to wait for favorable conditions in Broward. The county has 8.3 months of supply and a median sales price of $275,000, the same as a year ago.
House hunters buy at premium
Single-family homes fared better than condos in both counties as supply remains tight. Miami-Dade and Broward have close to five months of inventory, giving sellers the upper hand due to limited options.
Prices are also up from last year. Miami-Dade has a median sales price of $640,000, a 3% increase from $620,000. Broward has a median sales price of $606,000, slightly higher than $600,000 in August 2023.
As a whole, sales activity for both houses and condos continues to fall.
Miami-Dade had 2,002 deals, down 8% from a year ago, and Broward had 2,270 deals, a 6% dip.
Many buyers who purchased a home did so with cash. Miami-Dade saw 33% of all transactions close in cash; Broward saw 34%. Both counties had more cash deals than the national average of 26%.
More people could be home shopping soon in South Florida. The Federal Reserve cut its fed funds target by half a point, to range from 4.75% to 5%, with a midway point of 4.875%.
Housing experts believe the rate cut will encourage buyers to shop around. But, at least in South Florida, that may not be enough for condo buyers who face spiraling association fees and assessments.
This story was originally published September 20, 2024 at 6:48 AM.
