There were more homes and condos looking for buyers in South Florida last month than there have been in almost six years. The supply of houses for sale kept climbing as median condo and single family home prices kept going in opposite directions — condo prices are falling while home prices are increasing.
Sales of existing condos fell in Miami-Dade, Broward and Palm Beach counties in March. However, the pace of the decrease was less than in previous months.
It was a very choppy first quarter of the year for regional condo sales as new reforms took effect for older condominium buildings.
Areas with high concentration of condos have experienced the most significant drop in sales over the past year. Miami Beach, Aventura and Brickell have seen condo sales fall by five to over 20% in the first quarter compared to a year ago. However, median prices have not dropped off thanks to newer condo buildings that aren’t subject to some of the new laws passed in the wake of the Champlain Towers South condo building in Surfside in 2021.
READ MORE: Home price increases have been slowing. How's your neighborhood doing?
Sales of condos in Pompano Beach, Tamarac and Sunrise in Broward County are down by about 10%. Median prices in these areas fell compared to last year as they are home to older condos that may be facing special assessments and fast rising monthly fees to comply with new laws.
Areas with high numbers of condo in Palm Beach County fared better. West Boca Raton saw an increase in closed sales. The market may have been helped by lower prices as median prices in these areas fell by at least 6% in the past year.
How have condo prices in your zip code fared?
Florida’s condo market has been undergoing a significant change as buildings older than 30 years are required to undergo a visual structural inspection. If engineers find any issues, a more in-depth inspection may be required and the building is likely to have to address the problems fast. It is not uncommon for that to require a special assessment. Such charges can weigh on a condo’s sale price and deter buyers. In addition, condo associations no longer are allowed to waive regular monthly assessments. Instead, associations must start collecting and saving money for a list of usual maintenance items. That has led associations to hike monthly fees, further dampening buyer interest.
While median condo prices have dropped for three consecutive months in Miami-Dade and Palm Beach counties and remained flat in Broward County, single family home prices continue to remain at or near post-pandemic highs. The median price paid for a home sold in South Florida last month remained above $600,000 across the three most populous counties. The median price growth has slowed as more owners put their houses up for sale, increasing the selection for buyers.
“We need more inventory at key price points to satisfy out-of-state and global demand,” said Miami Association of Realtors Chairman Eddie Blanco.
The pace of single family home sales for between $600,000 to $1 million increased in Miami-Dade County. Sales of homes over $1 million Broward County were up 2%. Sales of homes at any price were up 2.4% in Palm Beach County.
It indicates what the Miami realtor’s group calls a balanced market for single family homes.
