In September, home prices in Miami-Dade County experienced a third consecutive monthly decline, offering some respite to prospective buyers with limited budgets who have been patiently waiting on the sidelines.
The median sales prices for single-family houses dropped to $600,000, and for condominiums, it decreased to $415,000. This marks a decline from August’s figures of $620,000 and $416,000, respectively. These reductions come after reaching an all-time high in July, with prices at $631,670 for houses and $420,000 for condos. It’s worth noting that, in addition to dealing with high mortgage interest rates, the downward trend in prices may be attributed to increased interest in the lower end of the housing market.
According to Mariya Letdin, a business professor at Florida State University, it’s important to keep an eye on this trend, especially if it continues into the cooler months, as it could signal a longer-term shift.
While there’s been a monthly decrease in housing prices in Miami-Dade, it’s essential to remember that entering the South Florida housing market remains more costly compared to a year ago. Annual prices for houses have seen an approximate 6% increase, reaching $568,000, and condos have risen by 5% to $395,000. Broward County, on the other hand, experienced varying median sales prices in September, with slight increases for single-family houses to $602,000 and condos to $270,000 on a monthly basis. However, there was a drop in Broward condo prices compared to September of the previous year.
In terms of sales volume, total home sales in Miami-Dade decreased in September, down nearly 9% from the previous year, totaling 1,984 transactions. In contrast, Broward saw an annual growth of just over 2% with 1,056 sales. While there has been an improvement in the supply of homes for sale in South Florida, conditions still favor sellers over buyers. Miami-Dade currently has 3.8 months’ worth of houses and 5.8 months’ worth of condos on the market, while Broward has 3 months of houses and 4.1 months of condos. A balanced market typically entails six to nine months of home inventory.
Looking ahead, it’s anticipated that interest rates will remain stable for the next few months, following a two-decade high. Melissa Hoff, a real estate agent with Compass, believes that even with potential further rate increases, South Florida will continue to see steady housing demand due to ongoing migration to the region.
Predictions for the condo market in Miami-Dade suggest an increase in supply and a decrease in prices, particularly as owners face challenges in meeting higher condo association fees since the collapse of Champlain Towers South in Surfside in June 2021. Peter Zalewski, founder of Condo Vultures in Miami, expects a shift back to a buyer’s market in 2024, though the exact timing remains uncertain. He notes that changes in telecommuting policies may influence migration patterns in the region. Broward’s condo market, however, is expected to fare better as the return-to-office dynamic gains momentum.
