Most people thought that real estate prices would snap back as mortgage rates declined off the highs.  What may actually take place is a few years of price discovery.  Today we will take a look at some charts of prices, transaction volume and inventory levels across the Miami, Fort Lauderdale and Palm Beach markets.

When we look at our first chart above, you will see the the average sale price of houses and condos are declining.  During the month of August, the average sale price of a single-family home was $978,166 and condo was $494,925.  The average moves around because we now have an ultra-luxury segment that can impact the monthly sales numbers.

The number of houses and condos on the market have declined over the past few months.  In August there were 16,552 houses and 30,666 condos available for sale.  The can most likely be attributed to a combination of closed sales and listings being removed from the market because they aren’t selling.  This is probably the case more for condo properties than single-family homes.  We have discussed at length in our market outlook that if you purchased a property in South Florida in 2022 or later, there is a really good chance you will lose money (net of commissions and closing costs) if you decided to sell it today.

Mortgage rates have declined off their highs, which helps in the price discovery process.  As we have mentioned in the past, more deal flow could bring lower prices, rather than pushing property prices higher.

How about the pace of sales?  Well, looking at the monthly average of closed sales shows that we are below anything we have seen since the housing crash.

Here is one more chart to show the transaction volume.  During the month of August there were 3,035 houses and 2,697 condos sold.