Sales Volume Recovers, Keeping Inventory Low
Single family home sales in South Florida rebounded nicely in March. With 3,829 total closings for the month we were down only 15.7% from March of last year and back in line with the March’s normal sales volume which has averaged 3,868 single family closings over the past 10 years. The result is that median prices also ticked up 5.6% over last March and inventory remains critically low with only 3.1 months of supply. While townhouse and condo closed sales didn’t rebound quite as dramatically, median sales prices are still up 2.6% and months of supply for condos remains low at only 3.9 months.
New pending sales in the tri-county region are up significantly for the third straight month and are at their highest level since May 2022. Interest rates have also trended downward in recent weeks helping to keep more buyers in the marketplace. We should expect that sales volume will remain strong in April and that low inventory will continue to favor sellers in South Florida for the foreseeable future.
We should expect that sales volume will remain strong in April and that low inventory will continue to favor sellers in South Florida for the foreseeable future.
Broward County single family home sales jumped to 1,271 closings in March, down 17.5% from last year, but reaching the highest level since July 2022. The median sales price was $565,000 which is up 5.6% over last year. The county only has 2.7 months of single family inventory which is the lowest in South Florida. That is still a strong sellers market and inventory should remain critically low with pending sales reaching 1,367 which is the highest level since June of last year.
Condo and townhouse sales skyrocketed in March to 1,542 closings. This is perhaps a result of the higher priced single family market as buyers consider more affordable condos and townhouses. This increase in activity has kept inventory low at 3.2 months of supply and with pending sales at their highest level since June we expect this seller’s market to continue. The median sales price for a condo in Broward county is $269,500 which is down slightly from the high of $272,000 last month, but relatively flat since January.
Broward County has only has 2.7 months of single family inventory which is the lowest in South Florida. That is still a strong sellers market.
Palm Beach County
Single family closings in Palm Beach County were the highest in South Florida with 1,465 closed sales. This was a massive increase from February which saw only 975 closings. Inventory remains low at 3.2 months of supply and should remain low since pending sales have steadily increased month over month since December. The median sales price for a single family home in Palm Beach County is $575,000 which is currently the highest in the tri-county area, but still down from the peak of $620,000 in June 2022.
Palm Beach County condo and townhouse sales shot up to 1,335 closings which is about twice the volume we had just 2 months ago. The median sale price was $312,000 which is up 6.1% over last March and just about equal to the peak in June of last year. Condo inventory remains low at 3.7 months of supply and should stay low due to strong pending sales numbers through the first quarter of the year.
Just like the rest of South Florida, Miami-Dade single family home sales were up dramatically in March to 1,093 closings, helping to slow increasing inventory that had reached a post-pandemic high of 4 months of supply in January. Pending sales were relatively flat however, so inventory is likely to remain the highest in the tri-county area. The median sales price was up 5.6% to $570,000.
Condos and townhouse sales recovered nicely from the previous month with 1,420 closings, but were still down 43.8% from last March. Condo inventory is the highest in South Florida with 4.7 months of supply which is approaching an equilibrium, not really favoring buyers or sellers. The median price of a condo in Miami-Dade is $400,000, equal to last March’s median price and relatively flat through the first quarter of the year.
The peak winter buying season has certainly not disappointed sellers in South Florida with large spikes in closed sales across all segments of the marketplace. You could argue that this is normal for March and you wouldn’t be incorrect, but a return to normal is welcome after a very uncertain year of low volume and higher mortgage rates. It seems that demand isn’t going away anytime soon and buyers are likely getting used to the higher mortgage rates. South Florida remains one of the healthiest and most desirable markets in the country. As long as demand continues and supply remains low we can expect our median prices to continue their upward trend, albeit at a much more manageable rate for buyers desperately trying to purchase a home.
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.