Miami condo sales take a new hit, but prices are higher. Here’s what market looks like
Condo sales fell by nearly 20% in Miami-Dade and Broward counties, more evidence that interest in South Florida high-rise living continues to plummet.
Total existing condo sales fell by 19% in Miami-Dade compared to a year ago in September, from 1,090 deals to 883, according to the latest monthly housing report by the Miami Association of Realtors.
Broward saw a similar decline of close to 18% year-over-year, from 1,122 deals to 922.
The decline in transactions comes at a time when condo owners face an uptick in condo fees, special assessments and looming reserves due to new Florida laws approved after the Surfside condo collapse.
Despite the dip in deals, prices kept rising in the condo market. The median sales price for condos in Miami-Dade was $420,000, up from $415,000 in September 2023. In Broward, the median sales price was $366,978, up from $270,000.
For a hot moment, condo prices in Miami-Dade dipped by 1% in August, a stroke of luck for buyers on the hunt for deals. But prices are climbing again as deep-pocketed shoppers splurge on places priced at $600,000 and up, according to the housing report, pushing up the median sales prices.
“The first things that happen in a changing market: inventory goes up, sales go down and eventually prices fall,” said Jack McCabe, owner of the Deerfield Beach-based real estate and economic research firm Jack McCabe Expert Services.
Housing inventory in Miami and Broward
The good news for condo hunters? They have more choices around town.
Miami-Dade has 10.1 months of inventory, swinging in favor of buyers. Broward has 8.7 months.
A balanced market consists of six to nine months of inventory. Anything under six months benefits sellers and anything over nine months helps buyers during purchase agreement negotiations.
Overall, the entire market continues to see a slowdown in activity. Total transactions in Miami-Dade fell nearly 15% to 1,692 from 1,984, and by 15% to 1,850 from 1,056 in Broward.
Single-family homes in South Florida
Median sales prices were also higher for houses.
Miami-Dade had a median sales price of $653,400 for single-family homes, up from $600,000 in September 2023. Broward has a median sales price of $615,325 for houses, up from $602,000.
South Florida had slim pickings for houses compared to high-rises. Miami-Dade has 5.1 months of inventory and Broward has 4.6 months.
“The number of single-family houses has not increased that much. That has helped keep single-family prices up better than condo prices,” McCabe said, adding South Florida has seen a flood of new high-rises with more on the way.
With the slowdown in total residential sales and strong prices, that raises the question: Who is buying in South Florida? Most buyers come from California, Chicago and New York, said Lourdes Alatriste, a real estate agent with Douglas Elliman.
“You have quality of life,” Alatriste said. “When you have so many activities in a city that’s not so big and has various languages, you say you can live here.”
Many of these deals closed in cash. Miami-Dade had 32.6% of its transactions in September close with cash; Broward had 35.7%. Both counties saw more cash buyers than the average percentage nationwide of 30%.
This story was originally published October 24, 2024 at 5:00 AM.
