Median Sale Prices Continue to Rise as Sales Volume Slows
South Florida’s housing market in August followed a similar trend to the previous summer months as year-over-year prices rose and sales volume slowed. Despite higher mortgage interest rates and higher median prices, buyers continue to be drawn to the South Florida lifestyle, climate and job opportunities. With our busy winter season right around the corner there is no reason to believe that prices will come down any time soon since demand typically increases in the winter months.
The median sales price of a single family home in South Florida was up over last year to $607,500, but still below the all-time high of $623,000 in June of this year. Months supply of inventory has remained steady since April with 3.0 months of supply which is still a strong seller’s market.
The condo market has followed suit with the median price of condos and townhomes up slightly over last year at $330,000, just below the record of $340,000 in June. Unlike the single family market, supply in the condo market has gradually increased to 4.3 months. This is still a seller’s market, but a welcome trend as we approach the winter season.
Supply in the South Florida condo market has gradually increased in recent months. It is still a seller’s market, but this is a welcome trend as we approach the busy winter buying season.
After reaching a record high of $615,000 in June the median sales price of a single family home in Broward county is down slightly to $600,000 in August, but still up 6.7% over last year. Broward has only 2.8 months supply of single family homes which is a strong seller’s market and the lowest inventory of homes in South Florida. There should be no expectation of prices coming down anytime soon in this segment.
The median price of a condo/townhome in Broward County was $275,000 in August, down slightly from last month, but up almost 4% over last year. Months supply of condo inventory is up for the second consecutive month and almost twice the inventory we had this time last year. We hope this trend will continue as the winter months typically attract seasonal buyers looking to purchase condos as second homes.
Broward County has only 2.8 months supply of single family homes, the lowest in South Florida. There should be no expectation of prices coming down anytime soon.
Palm Beach County
The median sales price of a single family home in Palm Beach County was $605,000, down from the peak in June, but up over 7% from the same month last year. Months supply of inventory stayed the same at a very low 2.9 months of supply, so we expect single family prices to remain high in Palm Beach County.
The median sales price for a condo/townhome in Palm Beach County was $305,000, down for the second straight month, but up almost 5% from last year. Months supply of inventory for condos remains flat at 3.6 months, but up from 2.1 months a year ago.
The median sales price for a single family home in Palm Beach County was $605,000 which is up over 7% from August of last year.
Palm Beach County, Florida includes the coastal communities of Boca Raton, Delray Beach, Boynton Beach, Lantana, Manalapan, West Palm Beach, Singer Island, North Palm Beach, Juno Beach and Jupiter.
The median sale price of a single family home in Miami-Dade was up 12% over last year to $620,000 in August. This is the only double digit year-over-year single family price gain in South Florida. Inventory was up slightly to 3.5 months of supply, which is still a strong seller’s market.
Median prices for condos and townhomes are also up double digits in Miami-Dade to $416,000, but months supply of inventory is up as well to the highest level in South Florida at 5.4 months. Despite increasing condo inventory we don’t expect prices in Miami-Dade to come down anytime soon.
Miami-Dade was the only county to have double digit year-over-year growth in August with single family median sales prices up 12% and condos up 11% over of last year.
Miami-Dade County includes the coastal communities of Miami, Miami Beach, Sunny Isles Beach, Golden Beach, Bal Harbour, Surfside and Key Biscayne.
While closed sales volume may be down across South Florida, there is little reason for concern as the normal forces of supply and demand are keeping our real estate market strong. Supply of inventory is still well below equilibrium and demand remains strong as buyers continue to be attracted to South Florida. People are still migrating to Florida more than any other state and many of them are coming from states with even higher real estate prices. While our prices may seem high to the locals, property is still considered a bargain compared to places like California, New York and Massachusetts. Until inventory levels increase significantly, we expect median sale prices to remain high.
For a detailed market analysis of your condo or single family home, or for professional assistance with your home search in South Florida please contact one of our local trusted agents.