Something rare happened to home prices in South Florida in November. They didn’t increase compared to a month earlier.
The median price of a single family home in Miami-Dade and Palm Beach counties fell in November by about 3% from the previous month. Prices for a single family home in Broward County rose up less than 1% during the same time period.
While not a significant drop, the almost consistent monthly increase in existing home prices experienced throughout South Florida for several years may be waning. Higher mortgage rates, a post-pandemic sales lull and increasing number of homes for sale could be contributing to slower price increases and small price drops.
Median prices of a home sold in November returned to summertime levels in Miami-Dade and Broward. Palm Beach County’s median home price fell in November to its lowest level of the year. Sales of higher priced homes have helped keep the price statistic up. Single family homes selling for at least $1 million jumped 12.6% compared to a year earlier, according to data from the Miami Realtors Association.
Condo crisis?
The regional condominium market continues showing signs of stress. More than 1,000 more condos went up for sale in November compared to October. The number of condos looking for buyers has increased for 11 consecutive months. A dearth of condos during the pandemic buying rush has evaporated as new reforms for condo owners and associations took effect at the beginning of the year.
New regulations for older condos require buildings to get a structural inspection and to begin saving money for regular maintenance items. Condo buildings of a certain age in Miami-Dade and Broward have been subject to regular inspections in the past. A state law passed in the wake of the Champlain Towers South collapse in Surfside applies similar mandatory inspections to all condos at least three stories tall and more than 30 years old statewide. The second requirement ends the ability of condo boards to waive funding reserves. The response for some older condo buildings has been to slap owners with special assessments and to hike regular monthly fees.
READ MORE: 'We were happy': Young owner is among those forced to sell as South Florida condo crisis bites
The timing of the new rules corresponds with a fall-off in the volume of condo sales across the region. Monthly sales figures show there has been only one month of year-over-year sales gains since Nov. 2023. The number of condos selling each month has fallen by double digits each month since August, according to the Miami Realtors data.
The sharp slowdown in sales also comes as the supply of condos for sale continues climbing. The monthly inventory of condos actively listed was up about 30% across South Florida in November compared to January.
The realtors group noted that — even with the increase in inventory — the supply of condos for sale in Miami-Dade is “still significantly below pre-pandemic.” The number of condos for sale in November was 26% below the number of condos in Nov. 2019, about two months before the COVID-19 pandemic began.
“The statistics would be much stronger if they included South Florida’s robust developer new construction market and volume,” noted the Miami Realtors Association. “The decline is due to lack of condo financing and inventory at key price points,” it wrote in a statement.
“Miami real estate heads into 2025 as a top ranked high-demand, low-supply market,” Miami Realtors Chairman Gus Fonte said.
Despite the increase in supply in 2024, median condo prices have held up. They were up $5,000 in Broward and Palm Beach counties versus October and jumped more than $20,000 in Miami-Dade. The data is helped by the sale of higher priced condos, especially those fetching over $1 million.
READ MORE: How condo reform laws sent monthly assessments for condo owners through the roof
Higher mortgage rates also provide a bit of a drag on the regional housing market, though less so in South Florida than in other areas. A standard 30-year mortgage was about 6.7% in November, according to data from Freddie Mac. That is substantially cheaper than a year earlier when rates hit 7.5%.
Still, borrowing costs have less of an impact on home sales thanks to a larger than average number of deals done with cash. About one out of every three single family home or condo in South Florida is sold for cash and does not require a buyer to secure a mortgage.
The total number of homes and condos listed for sale is close to returning to pre-pandemic levels. Housing inventories hit a low in the spring of 2022 as demand for South Florida real estate had been hot for months. There were more than 42,000 single family homes and condos for sale in Miami-Dade, Broward, and Palm Beach counties combined. This represents the highest inventory since June 2020.
Still, the National Association of Realtors puts South Florida number two on its list of top housing markets in 2025. It predicts sales volume will increase 24% while median prices climb 9% compared to 2024.
However, the South Florida housing market does not include some of the characteristics the realtors group cites for its top rankings of other markets, such as building new homes and demand from younger buyers. The group also acknowledged Miami’s higher cost of living presents an affordability challenge for some would-be homebuyers. What the Miami area has going for it, the group said, is high demand from international buyers.
