Today we are going to do a quick rundown of South Florida transaction volume, prices and inventory. ‘Tis the season for a slowdown in deal volume, so don’t be surprised when you see the first chart. During the month of November there were a total of 6,487 closed sales in the condo and single-family home market. That is a decline of 12% from October, but only a 3% decline from November 2018 when there were 6,711 closed sales. Take a look at the chart and you will see that this is more of a seasonal slowdown and no reason to panic.
As for the inventory of houses and condos on the market, there were 18,245 houses and 29,215 condos currently listed for sale in the tri-county area of Miami, Fort Lauderdale and Palm Beach. The total of 47,460 is down from 51,256 last November.
The average selling price of a South Florida house was $493,785 in November. That is only a slight decline of 1% from the average sale price of $500,299 in November 2018. As for condos, the average sale price rose 6% from $278,577 last November to $296,098 this year.
The easy money continues to flow and that’s the only thing keeping prices up at this point. Affordability remains a problem in South Florida and when rates remain low for too long, they encourage people to stretch their budgets. If rates climb next year you should see some air come out of this current bubble in real estate prices.
Monthly transaction volume
This next chart shows the average number of closed real estate transactions on a monthly basis. So far in 2019, we are at an average of 7,555 closed sales per month, basically unchanged from the monthly average of 7,573 in 2018. This may further illustrate that lower rates become less effective as time goes on.
Finally, here is how 2019 is stacking up to previous years.