Palm Beach County condos were the exception to the months-long drop in prices and sales activity across South Florida.
More condominiums were sold in Palm Beach County last month compared to a year earlier, according to new figures for the month of January released by the Miami Association of Realtors. It marked the first year-over-year sales bump in more than a year.
The condo market in Miami-Dade and Broward, meanwhile, continued slow in January. Median prices and sales activity fell. More units hit the market looking for buyers.
It adds up to a messy housing market in South Florida as the condo market continues adjusting to new regulations for associations and the single family home market keeps setting record median prices.
Condo market
The Miami Association of Realtors called Broward County a buyer’s market as the supply of existing condos for sale was almost 11 months. The number of condos for sale in Broward has increased every month except one over the past year. The condo inventory is up 50% in that time.
Miami-Dade’s condo sales market also has gotten more crowded. Yet, the realtors association points out condo inventory remains below where it was before the COVID-19 pandemic. That hasn’t helped keep prices up for sellers, though. Median condo prices in Miami-Dade last month were close to their lowest level in the past year.
The exceptions to the slowing pace of sales were on opposite ends of the price spectrum. Condos asking for between $200,000 and $250,000 saw sales activity increase 10%. The realtors association blamed the overall decrease in condo sales on “the lack of condo financing and inventory at key price points.”
It’s the high-priced end of the condo market that is moving in Broward. Sales of condos over $1 million were up almost 21% in January. New condo construction has been concentrated in the higher-priced end of the condo market.
The Palm Beach County condo market was also a bright spot in an otherwise mixed month. The median price of a condo sold last month in Palm Beach County jumped to $330,000 – it’s highest since last spring. The pace of condo sales also increased in Palm Beach County even as the supply increased.
READ MORE: South Florida's condo sales collapse slows as prices hold steady, latest figures show
“West Palm Beach leads the nation in all-cash sales, illustrating how our market is shielded in a sense from elevated mortgage rates,” said Ginenne Boehm, president of the Jupiter-Tequesta-Hobe Sound division of Miami Realtors.
Buyers are taking their time to close a deal. The median time between listing a condo and closing a sale is at least 100 days across the three South Florida counties. A year ago, it was less than three months.
Condo sales have slowed and inventories have increased as reforms were in place after the Champlain Towers South collapse in Surfside. Condo buildings at least three stories tall and 30 years old faced a Dec. 31 deadline to receive a milestone structural inspection. Associations also are now required to regularly put money aside for regular maintenance. The reforms have led some buildings to levy special assessments and hike monthly fees.
State lawmakers are expected to revisit the reforms during the upcoming legislative session.
Single family homes
While the condo market works to come to terms with the reforms, the South Florida single family home market continues to experience higher prices and tight inventories.
The median home price across the region jumped at least 6% in January compared to a year ago. It remains well over $600,000. That’s 60% over the national median price for an existing home.
“What’s driving the market is the upper price tier, with strong growth in the $600,000 and over and million-dollar market,” said Miami Realtors Chief Economist Gay Cororaton in a press release.
Mortgage rates were stable in January – around 6.8% for a 30-year mortgage, according to Freddie Mac. The South Florida home market is somewhat insulated thanks to a higher than average number of sales in cash. About half of home sales in Palm Beach County are in cash. A third in Miami-Dade are done with no mortgage and one in four are in cash in Broward County. The three counties were in the top five nationwide last year for the number of all-cash sales.
