How low will real estate transaction volume go? Do you think that May will be the low point, or is there further damage to be done? As we have stated before, any prolonged slowdown in deal volume will begin to hit selling prices. Today we will begin with a breakdown of condo sales across South Florida for the month of May, when there were 1,875 closed condo transactions across the Miami, Fort Lauderdale and Palm Beach markets. That total number of closed sales represents a 27% decline from 2,552 closed sales during the month of April. Here is a look at the breakdown of sales by transaction type and our most recent market update:
- Traditional sales – 1,782 in May, down from 2,486 in April
- Foreclosure sales – 78 in May, up from 55 in April
- Short sales – 93 in May, up from 66 in April
Do you think it’s crazy that we still track the number of foreclosures and short sales after a decade of this so-called recovery? What’s even crazier is that many of these distressed properties from the last housing crash are still making their way to the market.
How low will single-family home sales go?
Last January was a sluggish month in the South Florida housing market. Much of that slowdown is seasonal, but there were only 2,502 closed sales in the single-family home market across the tri-county area. During May there were 2,539 closed sales and here is the breakdown by deal type:
- Traditional sales – 2,432 in May, down from 2,950 in April
- Foreclosure sales – 81 in May, up from 68 in April
- Short sales – 26 in May, up from 23 in April
How low will condo prices go?
Are you expecting another crash in South Florida condo prices? Who knows what will happen over the next few months as buyers resurface. Will they want a bargain? There will most likely be a standoff between buyers and sellers in the coming months. Here is a look at median sale prices for condo properties across Miami, Fort Lauderdale and Plm Bach:
- Traditional sales – $215,000 in May, unchanged from April
- Foreclosure sales – $140,000 in May, down from $175,750 in April
- Short sales – $149,000 in May, up from $125,000 in April
Will house prices decline?
Since the existing inventory of houses remains low in the tri-county market, there might not be a significant decline in prices. If inventory increases rapidly, prices will eventually suffer. Historically low mortgage rates will continue to provide support to real estate markets. Here is a look at the median sale prices through the month of May:
- Traditional sales – $375,000 in May, down from $380,000 in April
- Foreclosure sales – $275,000 in May, down from $332,213 in April
- Short sales – $351,750 in May, up from $285,000 in April
Foreclosure filings across South Florida
Foreclosure filings have come to a screeching halt across the tri-county area of Miami, Fort Lauderdale and Palm Beach. There will likely be a spike once the halt is lifted. You will notice the spike in the spring of 2018 after they were halted after Hurricane Irma in September 2017.