Sales of multi-family residences in Miami-Dade, Broward, and Palm Beach Counties in South Florida were slightly under $5 billion over the first half of 2022. This is an almost record-setting amount, second only to performance in the first half of 2021, according to Cushman & Wakefield, a real estate services firm.
The average selling price of a residence from January through June also hit a historical high, reaching $325,000 in Miami-Dade, $300,000 in Broward, and $370,000 in Palm Beach.
The performance of the second half-year, however, is hardly likely to be as outstanding because of the higher interest rates. Mortgage loans now cover a smaller percentage of the property cost, so buyers have to pay more in cash.
Multi-family development is still actively developing due to significant drivers, one of which is the population growth. 47,400 new residents relocated to South Florida over the first six months of 2022, which is equivalent to the entire population of such cities as Coral Gables or North Lauderdale.
According to the Miami Association of Realtors, in July through August, the median selling price of multi-family houses reduced from $570,000 to $551,250 in Miami-Dade County and from $600,000 to $562,500 in Broward. The prices of such houses in the above areas somewhat melted over the summer but they are still too high. Many buyers are not ready to shell out half a million dollars for a home.