The real estate sector in South Florida, particularly in Miami-Dade and Broward, is undergoing a significant shift in its dynamics, favoring buyers of condominium apartments.
Miami Realtors indicated that inventory levels, which reflect how long it would take to sell all available properties if no new ones entered the market, have significantly increased in both counties, resulting in a broader supply.
In Miami-Dade, the inventory reached 10.6 months in October 2024, a significant increase compared to the 6.3 months recorded during the same period last year.
This change positions the market more favorably for buyers, as it surpasses the 9-month threshold that indicates an oversupply.
For its part, Broward County also shows an increase, reaching 9.2 months of inventory, compared to 8.7 months in the previous month and more than double the levels observed in October 2023.
It is still within the balanced range (6-9 months), but Broward is quickly approaching a buyer's market.
Experts indicate that a balanced market occurs when inventory levels are between 6 and 9 months. Below 6 months, supply is limited, favoring sellers; above 9 months, there is an increased supply, resulting in better conditions for buyers, more options, and greater negotiating power.
Prices on the rise, despite the increase in inventory.
The increase in inventory could benefit buyers, but there's one more detail: condominium prices continue to rise.
In Miami-Dade, the median sale price is $415,000, a 3% increase from last year, while in Broward it stands at $280,000, also reflecting a similar rise.
This phenomenon is partly due to the high demand for luxury condominiums, especially those priced over $1 million.
The interest in condominiums in newer buildings constructed in the last 30 years is on the rise. Concerns about structural repairs and new laws requiring higher contributions to maintenance reserves have led buyers to favor modern properties.
The condominium real estate market in South Florida is showing a clear trend: more options for buyers, rising prices, and a preference for new buildings, which is reshaping the landscape for those looking to purchase a property in the area.
Frequently Asked Questions about the Real Estate Market in South Florida
Why is the real estate market in South Florida shifting in favor of buyers?
The real estate market in South Florida is favoring buyers due to a significant increase in inventory in Miami-Dade and Broward counties. In Miami-Dade, inventory reached 10.6 months in October 2024, surpassing the 9-month threshold that indicates an oversupply, which creates better conditions for buyers.
What is the trend in condominium prices in Miami-Dade and Broward?
Despite the increase in inventory, condominium prices continue to rise. In Miami-Dade, the median sale price is $415,000, which is a 3% increase from last year, while in Broward it stands at $280,000, also reflecting a similar rise.
What factors are driving the demand for condominiums in South Florida?
The demand for condominiums in South Florida is being driven by interest in luxury properties and newer buildings. Concerns about structural repairs and new laws requiring higher contributions to maintenance reserves have led buyers to prefer modern properties.
What has been the impact of immigration and cash buyers on the real estate market in Miami?
The immigration of higher-income households from the Northeast and the high percentage of cash buyers have shielded the Miami market from the effects of elevated mortgage rates. This has contributed to the fact that home values in Miami have increased at twice the national rate over the past 15 years.
What challenges does the real estate market in Florida face due to climate phenomena?
The real estate market in Florida is facing significant challenges due to weather phenomena such as hurricanes and high insurance costs. Insurance costs in Florida have increased by up to 400% in recent years, adding to the pressure on homeowners, especially in disaster-prone areas.
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