Condo prices are rising in South Florida even as deals decrease. Why that’s happening
South Florida’s housing market is defying the odds.
Sales prices for condos and single-family houses increased in November compared to a year ago as the number of deals dropped and inventory went up.
Prices continue to climb thanks to wealthy buyers buying on the high end, leading to big transactions that affect the overall numbers.
Budget-conscious buyers may have to continue to wait on the sidelines. South Florida home prices continue to streak, contradicting a norm of higher inventory leading to lower prices.
“The reality is, people who are moving here can afford it,” said Eddie Blanco, the incoming 2025 chairman of the board for the Miami Association of Realtors and a real estate broker at the Palm Springs North office of Stratwell.
“We’re forgetting to remember Miami is now a global city,” he said. “When you compare Miami to Sydney, Shanghai, London, Morocco, we are a discount.”
Miami-Dade County had a median sales price of $650,000 for houses, up from $615,000 in November 2023, and $436,354 for condos, up from $420,000.
Broward saw similar activity. Houses cost a median of $619,500, up from $600,000, and condos $285,000, up from $280,000.
Residential sales drop and inventory grows
South Florida saw fewer deals in November compared to a year ago. Miami-Dade had an 8% drop in the total number of deals, to 1,510. Broward had an even bigger dip in deals, 11.3%, to 1,623.
Condominium sales, in particular, saw a big decline.
While single-family home sales grew in Miami-Dade, total condo sales fell by about 16%, to 794. Broward saw home sales fall for both houses and condos, but condos took the biggest hit with a nearly 19% drop, to 819.
As sales slow, the number of housing options continue to rise for both house and high-rise hunters.
In Miami-Dade, buyers have 5.4 months of inventory for single-family homes and 11.1 months for condos. Broward has slightly fewer options, with 4.9 months of houses and 9.8 months of condos. While buyers find higher price tags on homes compared to last year, today they have nearly double the number of options.
Many buyers continue to close with cash. Both counties saw about 37% of all deals in November close in cash, higher than the national average of 25%.
What’s ahead?
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Blanco said December and early 2025 may bring similar price and sales conditions, betting on stronger sales activity during the usual spring rush.
While Federal Reserve interest rate cuts normally draw more buyers, the percentage cuts may be too small to make a difference. This week, the Federal Reserve cut interest rates a quarter of a point, but predicted fewer cuts in 2025.
“Affordability,” Blanco said, will have to be “built into our marketplace.”
This story was originally published December 20, 2024 at 11:55 AM.
