During the first quarter of 2020, the South Florida condo market appeared to be moving toward another active year. The median sale prices held up nicely, aside from a spike in short sale prices. That was most likely due to a few high end condo deals closing and diving the median sale prices up for the month of March. Here is a snapshot of the median condo prices for each transaction type across Miami-Dade, Broward and Palm Beach County:
- Traditional sale – $215,000
- Foreclosure sale – $165,250
- Short sale – $275,000
Condo Transaction Volume
There were 3,998 closed sales during the month of March in South Florida. That is a 27% increase from the 3,148 closed sales in February. Here is a breakdown by transaction type:
- Traditional sale – 3,901
- Foreclosure sale – 84
- Short sale – 13
You will see that the price jump in condo short sales was driven by just 13 closed transactions, so there were either a handful of high-end condo short sales, or maybe just one pricey deal.
Condo inventory in South Florida
Keep in mind that these charts only cover through Q1 of 2020, but the number of condos listed for sale across the area hasn’t increased much. In March there were 29,227 condos listed for sale across the tri-county area. Look back to the beginning of this chart in january 2011 when there were 41,473 condos on the market during the financial crisis. We don’t know how long this latest crisis will last, or if we will surpass those numbers from the last housing crash, it’s just too early to tell. Hopefully the current owners / speculators in the condo make don’t have as much leverage this time around.
Condo selling season?
How about the selling season this year? Take a look at this last chart today and you will see the spikes in deal volume during the spring and summer months. It looks like the deals placed under contract prior to COVID-19 lock-downs will and have made it to the closing table with only some cancellations. The question is whether the restrictions on showings will further impact the number of transactions for the remainder of 2020.