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More stimmies!

More stimmies please!

More stimmies will be needed if you don’t want this housing bubble deflated.  After the government threw trillions of dollars at the pandemic and put housing out of reach for most people, it looks like real estate prices may be falling.  Let’s not forget about all of the millionaires who looted PPP bailout funds so their lifestyle didn’t suffer during the pandemic.  Most of them had their best year ever and treated themselves to vacation homes, boats, luxury cars and private jet travel.  O.K., enough ranting about the fraudsters, let’s cruise through some charts and see how things look in the South Florida real estate market.

You will notice from the first chart that average sale prices have declined over the past few months.  By looking at our chart, you will notice that single-family home prices in South Florida peaked in April with an average sale price of $943,299.  During the month of October, the average sale price of a house was $770,954, representing a 18% decline.  As far as condos, they peaked in May, with an average selling price of $488,283.  They have declined 18% from that peak and $400,726 was the average selling price in October.

More stimmies needed as deal volume drops

Transaction volume has been dropping over the past few months also.  June was most likely the peak for this cycle, with 6,746 houses and 5,462 condos sold, for a total of 12,208 closed sales.  In October, there were 4,018 houses and 4,736 condos sold, for a total of 8,754.  You will notice that the condo sales climbed month over month.  That represents a 28% decline after peaking in June.  Some of that can be attributed to a lack of inventory and we will show that chart later.

More stimmies!

And here is a look at the annual sales numbers going back to 2012:

Housing market update

Residential inventory continues to decline across Miami, Fort Lauderdale and Palm Beach.

Real estate inventory in Miami Fort Lauderdale and Palm Beach

Mortgage rates are still ridiculously low.  If they ever rise, that will put some additional pressure on the real estate market.

Mortgage rates and the housing bubble

This market outlook covers real estate activity in the tri-county area  of 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.