South Florida Real Estate – Up, Down, or Sideways?
The past year has been interesting regarding property valuations and inventory availability. This past November, single family home sales grew while condominium sales retreated some, according to Florida Realtors (http://media.floridarealtors.org).
There were 3,507 sales of single-family homes in the combined Dade, Broward, and Palm Beach market, down about 8.3% from November 2015. While sales shrank, the median prices increased about 8.8% to roughly $310,000. As compared to the entire state, single-family homes sales increased 10 percent to nearly 20,000. The median price grew about 10%, hovering around $220,000.
During the same period, south Florida condo/townhome sales slipped slightly (.6 percent), with a total number of sales hitting just over 3,000. The median price had increased almost 11 percent to $167,000. Although the entire year had softened some, the changes from month-to-month were very erratic.
The current market is relatively low on home inventory throughout much of Florida. Although frustrating for many buyers, it is welcomed news for sellers. To be sure, the higher prices and diminished inventory is effecting sales growth in many Florida markets.
Other factors, which may have affected the sales of homes (especially non-primary residences and investment properties) was the presidential election. Unsure and jittery, many prospective buyers stood on the sidelines to see how things would sort themselves out. Another factor affecting home sales was the anticipation over whether the Federal Reserve was going to raise interest rates…and if so, by how much. Some buyers may have been motivated to buy before the Fed’s announcement in order to lock in lower rates.
Miami-Dade County saw an increase of just over 13 percent of single-family homes to 1,025 and in increase in the median price to $310,000, also a 13.1 percent increase as reported by the Miami Association of Realtors. The most robust sector was in homes priced at $600,000 and under. The increase in active listings climbed almost 8 percent, which pretty much indicates a balanced market.
By contrast, Miami-Dade condo/townhome sales rose slightly more than 11 percent to 972. This marks a year of double digit declines. During the same period, the median sales price increased 7 percent to $217,250. Although the market was somewhat soft, Despite the difficult sales market, the supply of inventory soared 18.6 percent, increasing the supply of inventory to 13 months. That’s a buyer’s market.
According to the Greater Fort Lauderdale Realtors, Broward County single-family home sales rose 6.5 percent to 1,257 while the median sales price grew by almost 10 percent to $318,000. Although the active listings declined by almost 10 percent. This created a seller’s market.
Interestingly, the sales of condos/townhomes in Broward increased by a little more than 3 percent to 1,201 and median sales prices rose an impressive 14.2 percent to $145,000. The number of active listings were pretty much flat, which created a balanced market for the past six months.
Palm Beach County witnessed an increase of 6.4 percent in single-family home sales to 1,225. Median sales price grew almost 4 percent to $300,000, according to the Realtors Association of the Palm Beaches. The number of active listings rose up 7.4 percent. The supply of inventory rose as well, but it is still a seller’s market.
Condo/townhomes sales actually jumped significantly to more than 8 percent to 905 in Palm Beach County. The median sales price saw a remarkable increase of 15.1 percent to $160,000. Active listings also increased 5.7 percent, which increased the inventory surplus to almost six months.
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