What is happening in the South Florida real estate market

What is happening in the South Florida real estate market

According to a new report by Florida Realtors, the number of South Florida residents willing to sell their homes is increasing but the buyers willing to close the deal are getting fewer.

This trend is caused by high competition among buyers and a sharp price hike over the past few years. Nevertheless, the value of real estate continues to increase despite higher interest rates, even though the demand is beginning to decline.

The sales of single-family homes in three counties declined by 26% year-on-year, down to 4,051 transactions. The average property price grew by 20%, up to USD 600,000.

The statewide trend was similar: the sales of single-family homes reduced by an average of 17%, down to 28,296, while the average property price increased by 20%, up to USD 420,000.

The number of upscale single-family homes and condominiums sold in South Florida also dropped. “Our data shows that the volume of supply in the local market is beginning to grow, which may lower the emerging pressure caused by higher prices and lower affordability,” Christina Pappas, President at Florida Realtors, says.

She noted that it took much longer to sell single-family homes than condominiums at that time.

Brad O’Connor, Chief Economist at Florida Realtors, added that the average value of a single-family home had not changed from May to June, which happened for the first time since 2008. He sees it as a sign that prices are adapting to the growing number of homes listed for sale and the declining competition among buyers.

According to the MIAMI Association of Realtors, the sales of single-family homes in Miami-Dade County dropped by 26%, down to 1,139 transactions, while the average property value rose by 16%, up to USD 579,000.

Condominiums sales in Miami-Dade plummeted by 30%, down to 1,752, while their average value grew by 21%, up to USD 410,000. The sales of properties worth upwards of USD 1 million reduced by 21%, while the supply in this segment declined by 31%. Miami-Dade is still a seller’s market at the moment.

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