Median Sales Price Up 7.8% over Last Year
While sales volume was down significantly from January of last year, the median sales price of a single family home in Miami / Fort Lauderdale / Palm Beach MSA was up to $555,000. This is up 7.8% over last January, but still down from the peak of $600,000 in June of 2022. The real story across South Florida is still all about supply and demand. Demand is high, especially going into our busy winter season, but buyers are still faced with low inventory. We currently have 3.4 months supply of single family homes, up from 1.3 months supply last January, but still a very strong sellers market. There may be more relief in sight for buyers though, with new listings up significantly over December and down only 5% from last year.
The real story in our South Florida real estate markets is still supply and demand. The busy winter season is here, but buyers are faced with low inventory and a strong sellers market.
Trends in the Condo and Townhome market are very similar with closed sales down and median sale prices up 8.6% to $315,000. This is only $15,000 below the high of $330,000 in June of 2022. At 3.7 months supply of inventory, Condo supply is a bit higher than single family homes in the overall South Florida markets. With new listings slow to come to market and new pending sales way down from last year, we would expect inventory to keep increasing. However, we are entering peak winter season, so its possible that buyer demand could keep inventory low through the Spring season. The condo market is a bit unstable right now with new regulations, rising insurance costs and hefty special assessments in many of the older buildings. Make sure you work with an agent who understands the local condo market when buying and selling condos or townhomes.
Florida’s Population Growth
According to the National Association of Realtors Florida had the highest net domestic migration gain of any state in the nation with 318,855 people moving to Florida from other states in 2022. When you figure in net international migration, Florida is also the fastest growing state, with an annual population increase of 1.9% in 2022. As long as people keep moving to Florida the demand for housing will continue to be strong, inventory levels will remain low and median sale prices are likely to continue their upward trend.
Florida has the highest net domestic migration gain of any state with 318,855 people moving here from other states in 2022.
Including the beautiful coastal towns of Fort Lauderdale, Pompano Beach and Lauderdale-by-the-Sea, Broward County single family home sales totaled just 677 sales in January, down about 39% since January 2022. However, pending sales are at their highest level since September, so expect inventory to remain low. The median sale prices in Broward County was $540,000 which is up 8% over last year. The county still has only 3 months supply of inventory, which is the lowest in Miami / Fort Lauderdale / Palm Beach MSA.
Condo and townhome sales in Broward County dropped significantly in January to just 875 total sales. This represents the slowest January in our condo market since 2009. However, pending sales hit their highest number since August 2022. Median sale prices for condos increased to $269,000, up 12.5% over last year and the highest median sale price on record. We are watching the Broward condo market closely this winter. Stay tuned.
Palm Beach County
Palm Beach County includes some of the most desirable towns in South Florida including Boca Raton, Delray Beach and Jupiter. Single family sales in the county totaled 794 total sales, down over 33% from last year and the slowest January in over a decade. Just like Broward however, pending sales jumped up in January, so inventory should remain low. The median sale price was $582,500 which is up a whopping 10.6% over last year and remains the highest median price for single family homes in South Florida. Single family inventory was 3.4 months supply in Palm Beach County.
Palm Beach County condo and townhome sales were down in January 38.2% to the lowest level in over a decade. Median prices were up 12.8% to $299,000, slightly below the peak of $312,500 in June of 2022. Condo and townhome inventory was up slightly over December to 3.5 months supply.
Stretching from Aventura to Miami Beach, Miami-Dade County is the most populous in South Florida. Closed single family home sales in January 2023 were down 41.2% to 593 sales while the median sales price was up 4.8% to $545,000. Months supply of single family homes was 4 months, still the highest in the tri-county area, but still a sellers market.
Condo and townhome sales in Miami-Dade dropped over 50% to just 809 sales, while the median sales price was up 11.1% to $400,000, the highest median sales price since last June. Just like single family homes, the condo and townhome inventory was the highest in South Florida at 4.4 months supply in January.
We are definitely off to a slow start this year, but with pending sales up in January and median sale prices still on the rise it is easy to be optimistic about our winter and spring seasons. Buyer demand remains strong, inventory remains low and the busy season is here. What happens over the next few months in our real estate market could set the stage for the next few years. We are watching our markets closely. Stay tuned.