Miami-Dade County’s housing market experienced a notable increase in available properties in August, even as the number of home sales saw a year-over-year decrease. This trend, detailed by the MIAMI Association of REALTORS®, indicates a shift in market dynamics influenced by factors such as rising mortgage rates and limited inventory at crucial price points.
Key Takeaways
- Total housing inventory in Miami-Dade rose year-over-year in August.
- Single-family home sales declined, while condo sales also experienced a dip.
- Median sales prices for single-family homes increased, but condo prices saw a slight decrease.
- The luxury real estate market continued its strong performance.
Inventory Growth Outpaces Sales Decline
In August, Miami-Dade County witnessed a significant uptick in housing inventory. Single-family home inventory surged by 28.2% compared to the previous year, reaching 5,361 units. Similarly, condo inventory grew by 25.2%, totaling 12,637 units. Despite this improvement, the overall housing stock remains 16.6% below pre-pandemic levels.
Sales Volume Slows
Contrasting the inventory growth, the pace of home sales slowed down. Single-family home sales dropped by 8.2% year-over-year, with 885 transactions recorded. Condo sales also fell, experiencing a 13% decrease to 903 sales. The MIAMI REALTORS® attribute this slowdown to several factors, including elevated mortgage rates, a scarcity of homes in desirable price ranges, and a limited availability of FHA-approved loans for condominiums.
Price Trends Diverge
The median sales price for single-family homes in Miami-Dade County saw a modest increase of 2.3% year-over-year, settling at $655,000 in August. This marks a continuation of a long-standing trend, with the median price for single-family homes rising for 164 of the last 165 months. In contrast, the median sales price for existing condos experienced a slight decline of 1.2% to $410,000.
Luxury Market Continues to Shine
Miami’s luxury real estate sector demonstrated robust performance in August. Sales of condominiums priced over $1 million increased by 10.8% year-over-year, with 133 transactions compared to 120 in the prior year. The market for properties exceeding $5 million also saw growth, with a 11.8% rise in total transactions, from 34 to 38.
Furthermore, South Florida is on track to achieve its second-highest year for ultra-luxury home sales (properties valued at $10 million and above). Projections indicate that the region could see 426 such sales by the end of 2025, narrowly missing the record of 444 sales set in 2021.