Miami has had the largest median price growth, up 40.1% in only ONE YEAR!
South Florida’s home prices broke records yet again in June, despite a huge drop in sales compared with a year ago.
When Will Prices Decline?
One housing expert predicted that regional home prices would begin a decline early in 2023, and by late next year fall by up to 30%.
The median prices of existing home sales increased tremendously in Miami-Dade and Broward county, a result of the limited inventory available.
What’s Going on With Inventory?
Inventory is quite limited at this time in South Florida.
Closed sales in South Florida dropped in June by over 30% in Palm Beach County, 20% in Broward County and 26.1% in Miami-Dade County according to the latest data from Broward, Palm Beaches and St. Lucie Realtors.
Active listings shot up 50% in Palm Beach County, while in Broward County they rose 22.5% and in Miami-Dade County they jumped 19%.
“Buyers cannot handle these high prices and high rates … they’re not making offers,” said Patty Da Silva, real estate broker with Green Realty Properties in Cooper City.
South Florida sellers have had to lower the prices of their homes, according to data from Redfin.
For West Palm Beach, 20% of homes for sale had a price reduction, up 12% from last year.
In Fort Lauderdale, 15% of homes had a price reduction, up 11% from last year.
In Miami, 13.7% of homes had a price reduction, an increase of 8% since last year.
“There is no sense of urgency on the buyer’s side. The rates are higher and the prices are still too high and there is a lot more inventory. We are still getting a lot of showings, but not as many offers. The buyers are there, but they are more picky both in price and in quality,” Da Silva added.
Mortgage rates continue to climb which reduces buyers’ purchasing power.
“It remains to be seen which factor will have a bigger impact on home sales,” says Danielle Hale, chief economist for Realtor.com.
“I expect affordability to be the bigger driver than availability moving forward,” said Hale.
More affordable areas in the Northeast and Midwest are some of the hottest housing markets, according to Realtor.com.
NAR’s data supports this trend, with home sales holding steady from May to June in the Northeast and slipping only 1.6% in the midwest compared to drops of 6.2% in the South and 11.1% in the West.
Rapid Home Closings
Even though home sales have slowed to a pace similar to 2019, the number of days a property is on the market before going into contract is the shortest ever, at 14 days.
One possible reason for the record-low number of days on the market is that buyers are trying to take advantage of their locked-in interest rate.
Housing Shortages
While inventory is ticking up, there are still shortages of housing.
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ABOUT THE WRITER:
Elena Patestas is a journalist and writer for Valuetainment media. She attended Pepperdine University in Malibu, California, and Adelphi University on Long Island, New York. She was born and raised in Roslyn, New York, and currently lives in Miami, Florida.
Elena is passionate about bringing positive change to our world and believes education is the root to solving many societal problems. After overcoming a chronic health condition, Elena became passionate about health and believes food is the key to preventing dis-ease and achieving optimum health.
Amongst her many goals, she hopes to bring positive, impactful change to our world to create a healthy, financially sound, and unified society.
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