Taking a look at the South Florida condo market and owners are running for the exit.  Check out our first chart showing the surge in existing inventory.  We haven’t seen this much inventory of condo properties since the beginning of 2019!  Is the condo market correction finally upon us?  Well, if the number of listings continue to climb, price declines will be next.  In April of 2022, condo inventory in Broward County hit a low of only 2,377 units on the market.  During the month of June, inventory reached 8,938 units, representing a 276% increase off the lows.  Does anyone remember the cartoon character Snagglepuss?

The average selling price has been holding up for now, but that will be changing soon.  In June the average sale price of a condo was $380,173, up from $375,176 in May.  It’s just a matter of time that the increased supply starts hitting prices.  Overall, transaction volume has been declining after the COVID boom.  This next chart is a mix of houses and condos across Broward County, followed by condo sales by transaction type.

When we look at condo sales by deal type, the chart shows how the month of May could have been the last active month for this segment for awhile.  There were 1,334 transactions in May, compared to only 1,068 during the month of June.  This represents a 20% decline in deal volume in one month.  The buyer beware news must be reaching the masses.

Take a look at this chart of residential inventory in Broward County.  It doesn’t seem like anyone wants to own a condo anymore.  We had a blog post about the condo market challenges awhile back.  These things don’t happen overnight!

One last chart is a look at deal volume for houses and condos.  During the month of May, the total transaction volume for houses and condos was 2,583 and that number dropped 15% to 2,206 in June.  Do you think buyers are finally realizing the true ownership costs of property in South Florida yet?

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.