When is the comedown going to take place in the South Florida real estate market?  After such crazy activity and prices since the pandemic, South Florida real estate is bound to slow and lead to price corrections.  There is still a bunch of cash sloshing around the luxury residential market, but that will eventually dissipate.  One of the biggest issues facing the South Florida real estate market is the insurance crisis which only seems to be worsening at this point.  For your listening pleasure today, here is a link to the classic tune by Bush that was originally released in 1994.

South Florida Residential Inventory

Take quick look at this chart of residential inventory in Miami, Fort Lauderdale and Palm Beach.  You will notice that condo inventory continues to move higher.  During the month of May there were nearly twice as many condos listed for sale on the market than single-family homes.  Condo inventory was at 24,934 and the inventory of single-family homes was 13,416.

Residential Real Estate Prices in South Florida

How about sales prices?  Yes, they are still out of control.  Take a look at this chart below.  During the month of May the average sale price of a single-family home in the tri-county area reached $1,110,472.  As for condo prices, they dropped slightly to $554,951.  At what point do you think house prices will begin their decline?

Real Estate Sales Activity in South Florida

During the month of May, the number of houses and condos sold was basically even.  There were 3,763 condos and 3,790 houses sold in the month.  That will most likely be the last month in this stretch of higher activity as volume appears to be at a plateau by looking at the chart.

Take a look at this next chart and you will notice that 2024 average monthly transaction volume in South Florida is the lowest level of sales that we have seen in over a decade.

Mortgage Foreclosure Filings in South Florida

How about foreclosures?  After years of lower than normal foreclosure filing activity, the chart looks like it’s building a good base and moving higher.  Although it sometimes takes years for these properties to hit the market, we have a few tips on making an offer on REO properties.

Finally, Mortgage rates have comedown after spiking higher.  If there were buyers waiting on the sidelines, this could motivate them.

This real estate market outlook covers real estate activity in Miami-Dade, Broward and Palm Beach County, Florida.  Here are just a few of the cities in each of these three markets:

• Miami-Dade – Aventura, Coral Gables, Miami Beach, Hialeah, Sunny Isles Beach, North Miami, Homestead, Doral, Miami Lakes, Downtown Miami, Brickell and Key Biscayne.

• Broward – Fort Lauderdale, Pompano Beach, Deerfield Beach, Hollywood, Hallandale, Weston, Parkland, Wilton Manors, Oakland Park, Plantation, Cooper City, Davie, Coral Springs, Sea Ranch Lakes, Lauderdale by the Sea and Lighthouse Point.

• Palm Beach – Delray Beach, Highland Beach, Jupiter, Palm Beach Island, Boynton Beach, Boca Raton, Highland Beach, Palm Beach Gardens, West Palm Beach, Wellington and Lake Worth.