Will there be deals in the South Florida condo market over the next few years? There was a decent bounce in the number of transactions in the month of June, but we don’t know how long that will last. Here is a snapshot of the transactions in May. There were 2,761 closed sales across the tri-county area in June. That number represents a 28% decline from the 3,858 closed sales in June of 2019. The number of sales in June was a nice improvement from the 1,875 closed sales in May while COVID-19 had a significant impact on sales. This is the breakdown of closed sales by County:
- Miami-Dade – 804 closed sales in June, up from 563 in May
- Broward – 1,020 closed sales in June, up from 715 in May
- Palm Beach – 937 closed sales in June, up from 597 in May
Average sale prices
This chart of the average selling prices of condo properties is interesting. The average sale prices remained basically unchanged in the Miami and Fort Lauderdale area, but declined in Palm Beach County. We always say that one month does not make a trend, so this metric will be worth watching as we move through the remainder of 2020. Here is a snapshot of the average sale prices for South Florida condo properties:
- Miami-Dade – $410,697 in June, down a tad from $411,555 in May.
- Broward – $236,573 in June, down from $240,808 in May.
- Palm Beach – $304,657 in June, down 11% from $343,898 in May
Condo Deals by transaction type
This chart shows how traditional sales have dominated the South Florida market for several years. That may change down the line, but nothing in the near term as foreclosure filings are currently halted. Here is a breakdown by deal type:
- Traditional sales – 2,669 in June, up from 1,782 in May.
- Foreclosure sales – 81 in June, up from 79 in May.
- Short sales – 11 in June, down from 15 in May.
Condo deals – Median sale price
There has been a slow, but steady climb in the median sale price for South Florida condos since the last condo crash. The short sale and REO transactions remain somewhat volatile due to low volume. It only takes one or two high-priced distressed sales to move the price charts on a monthly basis. Here are the latest median sale price numbers for South Florida condo properties:
- Traditional sales – $225,000 in June, up from $215,000 in May.
- Foreclosure sales – $171,500, up from $140,000 in May.
- Short sales – $183,500, up from $149,000 in May.
The supply of condo properties currently listed for sale hasn’t changed much, but could be a good indicator of where prices are headed. If we see supply begin to increase, the selling prices will gradually begin to decline. Keep in mind that the real estate market isn’t very quick to change direction, so a new trend may take several months to develop. Here is a look at inventory through June:
- Miami-Dade – 14,433 condos listed for sale in June
- Broward – 8,002 condos listed for sale in June
- Palm Beach – 5,831 condos listed for sale in June