South Florida Real Estate: Inventory Rising Amid Declining Sales

As homeowners across South Florida increasingly list their properties for sale, real estate inventory remains surprisingly stagnant, reflecting pre-pandemic levels. Recent reports from Douglas Elliman indicate a notable trend: while residential sales are falling in most segments, the luxury market continues to thrive.

Current Market Overview

According to housing expert and appraiser Jonathan Miller, who compiles the Elliman reports, affluent buyers are navigating today’s elevated mortgage rates more effectively. He points out, "More affluent people have workarounds for mortgage rates. If you have a wealth manager, you’re not paying 7 percent for a 30-year fixed mortgage."

Inventory Trends

Despite the rising number of listings, many areas across South Florida have seen a decrease in inventory since the first quarter of the year. This contradicts expectations that inventory would peak in the second quarter. Miller highlights that “on a quarterly basis, inventory declines in almost every market but two or three.”

Median Prices: A Mixed Bag

While there have been years of rising median prices in some areas, certain markets, such as Boca Raton, are witnessing declines. However, overall trends indicate price growth in many regions.

• Luxury condominium sales are affected by new legislation aimed at enhancing safety standards, following the tragic Surfside condo collapse in 2021.

Regional Breakdown of Sales and Inventory

Miami Beach and the Barrier Islands

1. Sales:

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   • Residential sales plummeted 24% year-over-year, totaling 840 closings.
   • Single-family home sales dropped 16%, with 101 closings.
   • Condo sales took a hit, decreasing 25% to 739 closings.

2. Prices:

   • Median sale price rose about 15% to $802,500 overall.
   • Single-family home prices fell 14.6% to $2.9 million.
3. Inventory:
   • Total listings increased by 18.6%, resulting in approximately a year of supply for single-family homes.
   • Condo inventory surged 45% to 4,731 listings, indicating about 19 months of supply.

Coral Gables

1. Sales:

   • Single-family home sales up 16.5% to 113 closings.
   • Condo sales decreased 11% to 64 closings.

2. Prices:

   • Median single-family home price rose 11% to $2.3 million.
   • Condo prices increased by 14% to $672,500.
3. Inventory:
   • Total single-family home inventory grew 29% to 223 listings.
   • Condo inventory rose 42% to 183 listings.

Fort Lauderdale

1. Sales:

   • Single-family home sales down 16% to 415 closings.
   • Condo sales slightly increased, up 2.5% to 456 closings.

2. Prices:

   • Median home price reached $620,000, a modest increase of 3.3%.
   • Median condo price dipped slightly to $432,500.
3. Inventory:
   • Inventory for single-family homes grew nearly 22%, totaling 1,054 listings.
   • Condo inventory rose 16.3% to 1,774 listings, reflecting about a year’s supply.

Boca Raton and Highland Beach

1. Sales:

   • Single-family home sales fell 6.5% to 588 closings.
   • Condo sales decreased by 13.3% to 685 closings.

2. Prices:

   • Median price for single-family homes declined 2% to $932,000.
   • Median condo price dropped 2.5% to $385,000.
3. Inventory:
   • Single-family home inventory increased by about 14% to 812 listings.
   • Condo inventory grew 8.1% to 1,447 listings.

Palm Beach

1. Sales:

   • Single-family home sales surged 52% to 38 closings.
   • Condo sales rose by 15% to 92 closings.

2. Prices:

   • Median sale price skyrocketed 18.6% to nearly $13 million.
   • Median condo price soared 40.5% to $1.85 million.
3. Inventory:
   • Listings increased by 20% for single-family homes, totaling 73.
   • Condo inventory rose 21% to 202 listings.

West Palm Beach

1. Sales:

   • Single-family home sales dipped 6.2% to 396 closings.
   • Condo sales plummeted 22.4% to 429 closings.

2. Prices:

   • Median home price increased 4.1% to $582,500.
   • Median condo price fell 12.7% to $240,000.
3. Inventory:
   • Inventory for single-family homes rose 25.8% to 653 listings.
   • Condo inventory grew 11.7% to 1,395 listings.

Conclusion

As inventory levels rise in South Florida, the market continues to show signs of significant divergence between high-end and lower-priced properties. With evolving consumer behavior and economic factors impacting buying decisions, staying informed is crucial for prospective buyers and sellers. For more detailed insights on the real estate market, consider checking out Douglas Elliman.

For continuous updates and trends in South Florida’s real estate landscape, stay connected and informed through local housing reports and market analyses.