In a curious twist, South Florida's housing market experienced a significant downturn in home sales during 2023, yet home prices continued their upward trajectory. This trend, unfolding against the backdrop of a post-pandemic landscape, presents a complex picture for potential homebuyers and sellers in the region.
According to a report by the Miami Association of Realtors, South Florida's real estate market saw a considerable decrease in home sales last year. Miami-Dade County recorded a 26% drop in single-family home and condo sales compared to 2022, with 24,154 transactions. Similarly, Broward County witnessed a 17% decline, with 27,070 sales. This reduction marks a stark contrast to the bustling activity of 2021, which saw 39,394 sales in Miami-Dade and 40,423 in Broward.
Multiple factors contributed to this slowdown. Rising interest rates discouraged many from selling, while a lack of inventory and soaring prices further dampened sales. Additionally, broader economic trends, including layoffs in key sectors like tech and finance and ongoing inflation, played a role in this shift.
Yet, despite the decrease in sales, home prices in South Florida have not followed suit. As of December, the median sales price in Miami-Dade reached $610,000 for single-family homes and $410,000 for condos, marking increases of about 15% and 9%, respectively, from the previous year. Broward County also saw prices rise, with median sales prices for houses and condos reaching $570,000 and $275,000, up around 8% from 2022.
For those in the market for a new home, there's a silver lining. The region is witnessing an increase in listings, providing a broader selection for buyers. Miami-Dade currently offers 4.3 months of housing supply and 6.8 months for condos. Broward stands at 3.4 months for houses and 5.3 months for condos. Although this is an improvement from 2022, it still falls short of a balanced market, which typically has six to nine months of supply.
Another noteworthy trend is the prominence of cash transactions. In December, nearly 40% of all South Florida home purchases were made in cash, significantly higher than the 29% national average.
Looking ahead to 2024, real estate experts anticipate more favorable conditions for homebuyers, with expectations of falling interest rates and an increase in housing supply. Prices, though still on the rise, may offer opportunities for budget-conscious buyers seeking properties below the median sales price.
As the South Florida real estate market continues to evolve, buyers and sellers alike will need to navigate these changing dynamics with careful consideration and strategic planning.
Source: MMCG, Rebecca Juan, Miami Herald, Miami Association of Realtors