Affordability is Primary Obstacle for Home Buyers in South Florida
October was a difficult month for home buyers with both mortgage interest rates and median sales prices still on the rise. While interest rates have come back down in recent weeks, it is still a seller’s market and inventory remains low. New listings are up in October, but we don’t typically see a lot of new inventory during the holidays, so expect supply to remain low until January or February. This is when sellers like to test the market with the larger buyer pool during the busy winter season.
Closed sales volume was relatively flat year over year, but the median sales price of a single family home in South Florida jumped up 7.4% to $601,500. However, there is some good news for buyers shopping for single family homes in the tri-county area. Months supply of inventory spiked to 3.7 months. While technically a seller’s market, this is our largest single family housing supply since July 2020. If this trend continues we may start to see prices flatten and more sellers dropping their list prices.
The median sale price for condos and townhomes has trended flat, remaining at $330,000, but is still up 6.5% over a year ago. The condo market however is much closer to an equilibrium with months supply of inventory jumping from 4.6 months to 5.1 months since September. This is a 76% increase year over year. This is good news since demand for condos, especially on the waterfront, is typically higher in the winter and spring months.
Single family home inventory spiked to 3.7 months of supply. This is our largest supply of single family homes since July of 2020.
Broward County
The median sale price for a single family home in Broward County was up 6.5% over last year, but down a similar amount since the peak of $615,000 in June of this year. Its not likely this will be a trend. We experienced the same drop last fall before prices shot back up for 6 straight months through the winter and spring seasons. Single family inventory is still incredibly low at only 3.4 months of supply, the lowest inventory level in the tri-county area.
The median sale price of a condo/townhome in Broward County is up year over year to $272,750. This is just below the summertime peak of $280,000. Inventory has slowly increased every month since April of 2022, but it is still a seller’s market with only 4.6 months of supply.
Single family inventory in Broward County is the lowest in the tri-county area at only 3.4 months of supply.
Broward County, Florida includes the coastal communities of Fort Lauderdale, Pompano Beach, Lauderdale-by-the-Sea, Lighthouse Point, Hillsboro Beach and Deerfield Beach.
Palm Beach County
The median sales price of a single family home in Palm Beach County jumped up to $622,733 in October. This is just under the peak of $625,00 in June and the highest median sale price in South Florida. Inventory levels are up over last year, but still very low at only 3.6 months of supply.
The condo market in Palm Beach County is similar with median prices up 8.6% from a year ago and inventory levels at a tri-county low with only 4.2 months of supply.
The median sale price of a single family home in Palm Beach County jumped to just under $623,000 in October. This is the highest in South Florida and just below the summertime peak.
Palm Beach County, Florida includes the coastal communities of Boca Raton, Delray Beach, Boynton Beach, Lantana, Manalapan, West Palm Beach, Singer Island, North Palm Beach, Juno Beach and Jupiter.
Miami-Dade County
Much like the rest of South Florida, the median sale price of a single family home in Miami was up since October of last year and close to its record this past summer. Inventory is the highest of the 3 counties, but still a seller’s market with only 4 months of supply.
Condo prices in Miami-Dade County are up 4.2% over last year, but have trended down the past few months. Inventory levels for condos are the highest in South Florida at 6.3 months of supply. This is neither a buyer’s or seller’s market. What will happen to condo prices in Miami now that inventory is at an equilibrium is the big question. Whatever happens in Miami may just lead the way for the rest of South Florida. We will be watching closely.
Condo prices in Miami have trended down the past few months and inventory is now at an equilibrium. Whatever happens next in the Miami condo market may just lead the way for the rest of South Florida.
Miami-Dade County includes the coastal communities of Miami, Miami Beach, Sunny Isles Beach, Golden Beach, Bal Harbour, Surfside and Key Biscayne.
Summary
October was a tough month in the real estate market with volume down from last year and interest rates spiking to 20 year highs. However, there are signs that things are improving. The overall economic outlook is positive with many economists predicting the end of rising inflation. There are indications the fed is done raising interest rates and mortgage rates have dropped back down in the past few weeks. Active inventory levels are at their highest level since March of 2021 and new listings added in October are up 14% over last year. With the winter busy season upon us and plenty of pent-up buyer demand, the market could be poised for a strong comeback in 2024.
For a detailed market analysis of your condo or single family home, or for professional assistance with your home search in South Florida please contact one of our local trusted agents.
