The real estate market in South Florida continues to show strength, as Palm Beach, Broward, and Miami-Dade counties all posted near double digit increases in total homes sales. Year over year numbers increased across all segments, including single family homes, condominiums, and luxury transactions.
|JULY HOMES SALES|
|Total Home Sales||6.9%||9.7%||10.8%|
|Luxury Single Family >$1MM||23.1%||39.3%||2.7%|
Condo (>$1MM )
|Source Miami Association of Realtors|
|July 2018 vs July 2019|
Florida continues to be a net population gain state. But the impressive jumps in luxury sales are closely linked to positive tax advantages and the relatively low cost of maintaining a home, in attracting wealthy families and high earners from northern states with heavier tax burdens. Additionally, Miami remains a relative bargain in comparison to other global cities, meaning you get more for a $1MM, than cities like New York or Los Angeles. South Florida has a lot more going for it that its unique lifestyle options and work/play attraction, as shown by the growth in this market segment.
Historically low mortgage rates are another factor in these
results, as more individuals are taking advantage of this and entering the
market. Current rates are at a three
year low, and are expected to remain in this range in the foreseeable
future. General concern in the economy,
means interest rates will remain low. Specifically,
in the mortgage market, this translates into stability.
Growth is more restrained in condo sales, even showing a slight decrease in Miami Dade. This is mainly due to a lack of access to financing. To highlight this point, nearly 50% of Broward sales were cash. New FHA rules coming into effect, may make it easier to get a mortgage for condos, and should have a medium-term effect on sales numbers. Currently, of the 9,307 condominiums in Miami-Dade and Broward, only 12 are FHA Loan approved. Any change, will positively affect this segment.
South Florida remains a healthy and stable real estate market. Across all three counties inventory and absorption rates show a sellers’ market. Though certain niches, such as Miami Dade non luxury condos are now favoring buyers.