Median Sale Prices Reach Record Highs in Tri-County Area
After 2 years of record price increases and massive depletion of housing inventory, our real estate market in South Florida experienced a much needed correction this time last year. Mortgage rates reached a 20 year high and sales volume slowly receded to levels we had not seen since the Great Recession. However, basic supply and demand has taken over and our market has bounced back in 2023 with median prices reaching record highs in the Miami – Fort Lauderdale – West Palm Beach MSA.
Despite interest rates remaining relatively high, median price increases continue to be fueled by strong buyer demand from people moving to South Florida and an overall housing shortage. While US housing starts were up significantly in May, we are unlikely to experience the benefits of this in South Florida where there is little room for new residential development.
The median sales price of a single family home in South Florida reached a new peak of $610,000 in May, surpassing the previous peak of $600,000 in June of last year. Months supply of inventory remains low at 3.0 months which is still a strong sellers market.
The condo market has followed a similar path over the past year with median prices climbing back over the past year now matching the previous peak of $330,000. Supply in the condo market has continued its steady increase over the past year and is now at 4.1 months of supply. This is still a seller’s market, but slowly trending towards market equilibrium.
Basic supply and demand has taken over and our market has bounced back in 2023 with median prices reaching new record highs.
Broward County
The median sales price of a single family home in Broward County was $585,000 which is just shy of its peak of $600,000 in July of last year. The county has only 2.6 months supply of single family homes which is still the lowest in South Florida. This is a very strong sellers market. As long as inventory remains low and demand continues we should expect median prices to continue going up throughout the summer months.
The median price of a condo/townhome in Broward County remained at $270,000 in May, just slightly below its peak of $272,000 in February of this year. Months supply of inventory ticked up slightly to 3.4 months, which has been the trend for the past year. However, with very few new condo developments planned for the near future we don’t expect inventory to increase substantially anytime soon.
Broward County has only has only 2.6 months of single family inventory and 3.4 months of condo inventory. Both are the lowest in the South Florida real estate market.
Palm Beach County
The median sales price for a single family home in Palm Beach County jumped up to $622,000 which is the highest median price in South Florida. Months supply of inventory ticked down again to 3 months, so we expect single family prices to remain high in the county.
The median sale price for a condo/townhome in Palm Beach County last month was also up in May reaching an all time high of $315,000. Months supply of inventory remained relatively stable at 3.7 months.
The median sales price for a single family home in Palm Beach County jumped up to $622,000 which is the highest median price in South Florida.
Miami-Dade County
The median sale price of a single family home in Miami-Dade continued its upward climb to a new all time high of $620,000. Inventory remained the same at 3.3 months of supply. This is still a strong sellers market.
On the other hand, condos and townhomes in Miami-Dade are trending closer to an equilibrium which is a welcome trend for Miami buyers. Median prices for condos remained stable at $415,000 while supply increased again to 5.1 months, which is the highest supply of condos in the tri-county area. As long as condo construction continues in Miami/Dade we should expect inventory to continue increasing.
Condos and townhomes in Miami-Dade are trending closer to an equilibrium which is a welcome trend for buyers in the county.
Summary
New month, same story… As long as inventory remains low we can expect median sale prices to continue their upward trend, especially in the single family market. While condo price increases will likely be more flat, strong demand for condos should continue as single family affordability becomes an issue for more buyers. It is still a great time to buy real estate in South Florida and a good Realtor can help you to find the better deals in this changing real estate market.
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.
