Residential inventory saw a bounce during the month of July as this crazy market begins to normalize. There were 10,894 houses on the market in July across the tri-county area, up from 9,641 in June. That is a 13% month over month increase. Condo inventory climbed 10% month over month. There were 12,367 condos on the market in July, up from 11,269 in June. This puts us back where we were one year ago, when total residential inventory in South Florida was 22,491 last July.
How about sale prices? It sure looks like they are finally coming down. The average sale price of a condo declined 16% from $533,979 in June to $448,100 in July. House prices declined 10% from $1,019,037 in June to $916,843 in July. As the inventory bounce continues and additional supply hits the market, the housing bubble will continue to deflate. Keep in mind that we haven’t seen mortgage rates at these levels in years.
Transaction volume continues to decline across Miami, Fort Lauderdale and Palm Beach. From June to July, single family home sales volume dropped 20% and condo sales dropped 16%.
Here is a look at the annual sales for the area over the last decade.
Mortgage rates have been volatile over the last few weeks, but seem to have found a home over 5.00%. remaining at these levels will pressure the housing market to the downside.
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.