Home Sales Drop in Miami-Dade and Broward: Condos at the Heart of the Issue

West Palm Beach, Florida – July 2024- Recent trends show a decline in home sales in Miami-Dade and Broward counties, and the condominium market appears to be a significant factor. A new report by the Miami Association of Realtors highlights a decrease in the number of home sales in these counties this May compared to last year, largely due to fewer condominium transactions.

Home Sales in Miami-Dade County

In Miami-Dade County, 2,397 homes were sold in May, reflecting a 0.6% decrease from May 2023. Despite this slight overall decline, single-family home sales have continued to grow. There were 1,102 single-family homes sold in May, marking a 6% increase from the same month last year. This upward trend has persisted for six of the past seven months. Conversely, condominium sales, which had previously seen a rise, dropped by 5.6% compared to May 2023. This decline is partially due to a limited inventory, especially in the higher price ranges, with about 53% of new condo listings priced above $600,000. Additionally, condominium owners are currently burdened with rising maintenance fees, assessments, and insurance costs.

Broward County Home Sales

Broward County did not fare much better. In May, the total number of home sales was 2,583, a 6.8% decline compared to May 2023. Single-family home sales fell slightly by 0.2%, with 1,249 homes sold. Much like Miami-Dade, condominium sales in Broward experienced a significant decrease, dropping by approximately 12.2%. In May of this year, 1,334 condos were sold compared to 1,520 in May 2023.

Home Prices in Miami-Dade

While the total number of home sales has declined, median home prices have continued to rise, following a long-standing trend in Miami. The median price for a home in Miami-Dade County is now $650,000, up from $620,000 last year. Single-family home prices in Miami-Dade have increased for over 12 consecutive years, a record period of growth. From May 2012 to May 2024, single-family home prices surged by 242.1%, from $190,000 to $650,000. The median price for condominiums also saw a modest increase of 2.4%, from $415,000 last year to $425,000 this May.

Home Prices in Broward

Similarly, in Broward County, the median home price rose to $625,000 in May, a 6.8% increase from $585,000 in May 2023. Condominium prices also increased by 4.4%, from $270,000 in May 2023 to $282,000 in May 2024.

Buyer vs. Seller Dynamics in South Florida

Letdin observed that both houses and condos are staying on the market longer due to a gap between buyer expectations and seller demands. However, buyers face significant challenges with current interest rates being nearly three times higher. “Prospective buyers are not viewing interest rates in the same light and often cannot afford these prices,” Letdin explained.

Despite these hurdles, there remains some optimism for buyers. While getting homes off the market remains a challenge, property owners in Miami-Dade have seen capital gains double the national average, with gains approaching half a million dollars. Nationally, the average capital gain is $287,111, whereas in Miami-Dade, it’s $533,955, according to an analysis by Miami Realtors.

The real estate landscape in Miami-Dade and Broward continues to evolve, shaped by rising prices, changing market dynamics, and varying buyer and seller expectations.