Miami-Dade County’s housing market is experiencing a notable shift, with inventory levels rising significantly in recent months while home sales have seen a downturn. This trend, observed in both August and July data, suggests a cooling market influenced by factors such as elevated mortgage rates and a scarcity of homes at certain price points.
Key Takeaways
- Inventory Surge: Both single-family homes and condominiums are seeing a substantial year-over-year increase in available listings.
- Sales Dip: The number of closed sales for both single-family homes and condos has declined compared to the previous year.
- Price Stability (Mostly): While condo prices have seen a slight decrease, single-family home prices continue their long-term upward trend, albeit with a recent minor dip.
- Luxury Market Strength: The high-end segment of the market, particularly luxury condos, remains robust with increasing sales.
- Affordability Challenges: Elevated mortgage rates and a lack of FHA-approved condos are impacting buyer accessibility.
Inventory Expansion Amidst Sales Slowdown
August data from the MIAMI Association of REALTORS® and the MIAMI Southeast Florida Multiple Listing Service revealed a significant year-over-year increase in housing inventory. Single-family home inventory grew by 28.2% to 5,361 units, and condo inventory rose by 25.2% to 12,637 units. Despite this improvement, the total inventory remains below pre-pandemic levels by 16.6%.
This inventory growth contrasts with a decline in sales activity. Single-family home sales dropped by 8.2% to 885, and condo sales fell by 13% to 903 in August. The previous month, July, also saw similar trends, with single-family home sales down 14.6% and condo sales down 17.3% year-over-year.
Factors Influencing Market Dynamics
Real estate professionals attribute the sales slump primarily to elevated mortgage rates, a shortage of inventory in crucial price brackets, and a limited availability of FHA loans. Statistics indicate that a very small percentage of condominium buildings in the tri-county area are approved for FHA loans due to reserve requirements for condo associations.
Price Trends and Luxury Market Resilience
In August, the median sales price for a single-family home in Miami-Dade County increased by 2.3% year-over-year, reaching $655,000. This marks a continuation of a long-standing trend of price appreciation for single-family homes in the area. However, the median sales price for existing condos saw a slight year-over-year decline of 1.2% to $410,000.
Conversely, Miami’s luxury real estate market demonstrated continued strength. Sales of condos priced over $1 million increased by 10.8% in August, and transactions exceeding $5 million saw an 11.8% rise. South Florida is projected to achieve the second-highest number of ultra-luxury home sales in a single calendar year by the end of 2025.
Sources
- Miami-Dade housing inventory rises in August as sales slide, South Florida Agent Magazine.
- Miami-Dade home sales, prices slide in July as inventory increases, South Florida Agent Magazine.