Total home sales in South Florida fell by double digits in March. Above: Royal Caribbean employees and guests greeted the Perez Art Museum’s “icon of the seas” as the ship turned around in front of the Miami skyline early Wednesday morning during its first arrival at PortMiami, on January 10, 2024.
pportal@miamiherald.com
More buyers are staying on the sidelines in South Florida, leading to a nearly 15% decline in total residential transactions in March.
Miami-Dade County recorded 2,141 sales of single-family homes and condos in March, up from 2,513 a year ago, according to the latest monthly home sales report from the Miami Association of Realtors.
Broward saw the same trend, with 1,084 home sales, compared to 3,133 sales in March 2023.
It’s the first double-digit decline in South Florida since last August and a sign of growing pressure on homebuyers.
Buyers face two main pressures: mortgage rates and historically high sales prices.
Miami-Dade has a median sales price of $650,000 for single-family homes — an absolute record — and $445,000 for condos. Broward has a median sales price of $607,000 for homes and $288,750 for condos.
People are still buying, but real estate analyst Jonathan Miller believes purchases are coming primarily from those from the Northeast who have equity from home sales or higher salaries. Miller said more workers will continue to move to South Florida and boost activity given South Florida Businessfinances and technological climate.
South Florida “has gone from a nice place to visit to a nice place to live — that’s change,” said Miller, president and CEO of real estate consulting firm Miller Samuel.
“All of this has been made possible by working from home,” he said. “That’s why Florida’s outlook is being restructured, the idea that people are seeing it in a different light.”
What is happening with the housing supply in South Florida?
Buyers have a growing number of residential options. Miami-Dade has 4.3 months of supply of houses and 8.2 months of supply of condos. Broward has 3.9 months of houses and 7.2 months of condos. A healthy state consists of six to nine months of inventory, anything below benefits sellers and anything above tilts in favor of buyers.
Many shoppers continue to shop with cash. Miami-Dade saw 37.2% of deals completed in cash, and Broward saw a slightly higher amount at 42.6%. South Florida continues to have a percentage of cash buyers higher than the national average of 28%.
In the future, interest rates will likely be the biggest factor influencing buyers and sellers.
As of Thursday, mortgage lender Freddie Mac had a fixed mortgage rate of 7.1% for a 30-year loan, slightly higher than a year ago at 6.35%. Rate cuts appear off the table anytime soon, and Miller said it will likely keep more people in place, especially potential homeowners and sellers.
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