According to a fresh report, in the third quarter of 2022, sales of residential properties in South Florida are still falling and prices are growing compared to the last year’s market boom.
Jonathan Miller from Miller Samuel, one of the authors of this report, notes that sales slowed down by about 30% and the supply of listed properties is now two times smaller than before the pandemic, as all the excessive inventory of houses for sale was bought out over that time.
Miller said that in Delray Beach, for instance, the supply of single-family homes increased by 58% in the third quarter, up to 307 properties compared to 194 properties a year earlier. However, their amount reduced by 47% compared to the same period in 2019.
Even under the circumstances of growing mortgage rates, slowing price growth, and reducing sales volume (compared to the incredible performance demonstrated by the housing market in 2021), the current cycle is different from all others. It is caused by the spread of working from home. The situation in the markets is almost identical, Miller says: the supply reached a historical low and prices keep rising, so if a seller is unable to sell their property for the asking price, he or she simply refuses the deal. This is made worse by the fact that new mortgages cost far more than already existing loans.
The residential property market, according to Miller, has changed, not disappeared.