South Florida Real Estate Market Poised for Summer Selling Season
The first quarter of 2022 saw a significant decline in the number of existing home sales in South Florida, with Miami-Dade County recording a 40% drop in single-family home sales compared to the same period in 2021. Broward County saw a decline of 27% in quarterly sales. Despite the decrease in sales, the steady stream of outside buyers pushed median prices of houses and condominiums higher, making them still unaffordable for many local residents.
Miami-Dade’s median price for houses rose to $570,000 in the first quarter, up from $540,000 a year ago, while Broward’s median price tag rose to $565,000 last month, a jump from $545,000 in March 2021. Condo prices, meanwhile, remained steady in Miami-Dade at $400,000, while in Broward, they rose to $269,500 from $238,500.
The influx of remote workers and corporate expansions continues to cushion the regional housing market. Despite the slowdown in the South Florida housing market from its frenetic pandemic peak, higher-earning professionals from the Northeast and West Coast keep moving to the region, propping up home prices. This has led politicians to express concern about potential detrimental effects on the local labor market and economy.
Recent homebuyers are facing a challenging situation despite more options in the housing market. Many purchasers are avoiding higher interest rates, which has led to nearly half of all March home transactions in South Florida closing with cash. As the competitive push to buy has eased, the regional housing inventory has nearly doubled over the past year.
Real estate experts expect condo prices to fall in late 2023 and early 2024, primarily the result of additional supply from developments finishing that started in recent years. People holding out for a house in South Florida might want to strive to buy sooner rather than later, experts say. Despite falling sales that began last summer, single-family home prices are expected to hold steady or increase due to limited inventory and high land costs.
As early as January 2023, the real estate market could be affected by a priority bill by Governor Ron DeSantis that would limit buying ability for foreign buyers from seven countries, including China, Cuba, Venezuela, and Russia. If this legislation passes in its current form and the governor signs it into law, the potential blowback could lead to both demand and prices crumbling.
The Miami real estate market continues to experience fluctuations due to a range of factors. However, with the number of existing home sales dropping and prices increasing, finding affordable homes for budget-conscious and first-time homebuyers remains a challenge.
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