The surge in real estate prices across South Florida this year is being led by luxury homes in the Miami area. The average selling price of a single-family home in Miami reached $808,173 during the month of November. That is higher than the average sale price of $753,028 in Palm Beach County and $558,708 in Broward County. The next chart shows how the ultra luxury home sales are dragging the averages higher for all of South Florida. Condo properties look like they are finally getting some love, with the inventory of houses dropping to new lows.
Miami, Fort Lauderdale and Palm Beach real estate prices
South Florida real estate inventory
While there are still plenty of condos for sale across the tri-county market, the number of houses for sale remains low. In November there were 10,915 houses listed for sale on the market, down from 11,350 in October. Obviously everyone wanted a house when the COVID-19 pandemic hit. Along with the surge in demand, not many people were looking to move. The big spike in demand has driven inventory down and prices higher. Will more sellers emerge in 2021? When we look at condo inventory, there were 26,851 units on the market in November, down slightly from 27,112 in October.
Single-family home sales in South Florida
This chart shows the volume of transactions across South Florida in the single-family home market. There were a total of 4,134 sales in November, down 14% from the whopping 4,800 sales in October. Here is a breakdown of the sales by deal type in November:
- Traditional sales – 4,062 closed sales, down from 4,690 in October
- Foreclosure sales – 49 closed sales, down from 62 in October
- Short sales – 23 closed sales, down from 48 in October
Condo sales in South Florida
There was a slight dip in condo sales during the month of November, just like the single-family home market. Sales in the the South Florida condo market dropped 8% from 4,411 in October to 4,062 in November. Here is the breakdown by transaction type:
- Traditional sales – 3,991 closed sales, down from 4,330 in October
- Foreclosure sales – 59 closed sales, down from 67 in October
- Short sales – 12 closed sales, down from 14 in October
Total real estate sales across South Florida
The last chart today shows how 2020 compares to prior years during this real estate recovery cycle in South Florida. This year will need close to 11,000 closings during the month of December to meet 2019 numbers and it doesn’t look like we will get there. Given the circumstances and a few months of restricted activity, it will still be a good year, especially for price appreciation.