Buying a condo in South Florida? You may have more options — but with a higher price
Condo buyers may start singing Judy Garland’s “Lucky Day” soon. Inventory levels have swung in their favor across South Florida, potentially sweetening any negotiations with sellers.
Miami-Dade County has 10.6 months of condos as of October 2024, up from 6.3 months a year ago, according to the latest home sales report by the Miami Association of Realtors.
Broward has 9.2 months-worth of condos, up from 8.7 months in September and more than double the number of listings from October 2023.
A balanced market consists of six to nine months of inventory, with anything under favoring sellers and anything over favoring buyers.
The total number of condo deals fell in both counties. Miami-Dade saw a nearly 15% drop. Broward condo deals plummeted nearly 24%.
The surplus of condos and slowdown in transactions come at a time of rising concerns over needed repairs of aging buildings. After the Surfside collapse, new Florida condo laws have moved associations to increase monthly fees and add special assessments. By January, condo owners are expected to contribute to reserves, a savings plan meant for renovations and upgrades of an aging roof, for instance, or for concrete restoration.
Through it all, prices keep rising.
Miami-Dade has a median sales price of $415,000 for condos, up nearly 3%; Broward has a median sales price of $280,000 for condos, up nearly 3%.
Why the price increases? The number of deals made for $1 million-plus condos continue to increase across South Florida. Miami-Dade saw a nearly 4% year-over-year rise in high-end deals and Broward nearly 7%.
Condo shoppers want peace of mind and lean more toward higher-end condominiums under 30 years old to avoid the rising financial pressures, said Peter Zalewski, a condo analyst and founder of the downtown Miami-based consultancy firm Condo Vultures.
“Newer buildings are going to be highly sought after,” Zalewski said earlier this week when discussing condo legislative changes with the Miami Herald. He said more condo buyers are drawn to younger buildings to avoid concerns tied to structural issues.
South Florida’s total sales and single-family homes
Miami-Dade’s total residential sales dropped by about 10%. Broward saw a bigger drop — about 12% down from October 2023.
Single-family homes continue to be in high demand. Inventory levels prove it: Miami-Dade has 5.2 months of supply and Broward has 4.7 months.
Given the tight supply, prices continue to rise. Miami-Dade has a median sales price of $670,750 for single-family homes, up nearly 9%. Broward has a median sales price of $615,000, up 7%.
Cash deals
Many residential transactions continue to close with cash.
Miami-Dade saw about 35% of its deals close with cash and Broward nearly 37%.
Both counties have higher percentages than the national average of 27%.
This story was originally published November 22, 2024 at 5:00 AM.
