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Home prices in South Florida are finally falling - but is it enough for struggling buyers?

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Patrick Farrell
/
Miami Herald

Home prices in South Florida are finally falling. Last month prices fell in Miami-Dade for the first time since 2021, and prices in Broward have dipped for the first time in months.

For those who have been waiting for the market to cool down, this is great news. But how significant is that drop in prices?

On the latest episode South Florida Roundup, WLRN’s Wilkine Brutus spoke with Michael Butler, a real estate reporter for the Miami Herald about the current shape of South Florida’s real estate market.

Butler said that a three-bedroom, two-bathroom house in Miami Gardens that had been previously appraised at $350,000 had most likely ballooned to about $550,000 as prices ran wild over the last year.

“You’re looking at maybe a $20,000 dollar drop between July and August,” Butler said. “Technically, that indicates there was a drop … But in terms of like a more significant drop, $20,000 might not mean a whole lot when you’re still overpriced by $200,000.”

Although the prices have declined, the overall the drop hasn’t been significant enough for those searching for homes to feel relieved.

Lower prices could indicate a shift in the market and a steady decline in prices over the next months as the market corrects itself.

However, the key issue of housing inventory in South Florida remains.

Butler said in Miami-Dade County, there is currently 3.3 months of inventory for single-family homes, and 3.4 months of inventory for condos. When the situation was more dire a few months ago, Butler said the county had about 2.4-2.5 months of housing inventory available.

But we are still short of what would be considered a balanced market - around 5 or 6 months of inventory.

“The market hasn’t so much stabilized as the demands have lessened, as a lot of people are trying to hold their cards close to their chest,” he said.

“About 4 or 5 months ago at an open house in Miami, you could expect to see 40 cars packed outside and a long line of people all waiting to see the same home … as of now that simply is not the case.”

Listen to the full conversation with Michael Butler on the South Florida Roundup here.

Natu Tweh is producer of The Florida Roundup and The South Florida Roundup at WLRN.