The Miami-Dade real estate market is witnessing record-breaking prices for the second month in a row, according to the recent housing market report by the Miami Association of REALTORS®. The market trends indicate an increasing median sales price for single-family properties and a tightening home availability.
As per the report, the median sales price for single-family homes reached a staggering $620,000 in May, up from $575,000 from the previous year and $600,000 in April. These figures signify a market increasingly competitive and arduous for prospective homeowners.
The real estate market thrives on an equilibrium of supply and demand, with a healthy market typically possessing a six to nine-month supply of homes. However, the current supply of houses in the Miami-Dade market stands at a scarce 3.3 months, with the condo inventory just a little better at 5.1 months.
In stark contrast, the neighboring Broward market saw its median sales price for single-family homes slightly drop to $585,000 last month, down from $586,000 in May 2022.
Despite these soaring prices and constrained availability, Miami’s urban area is steadily solidifying its position as one of the country’s least affordable housing markets. This trend continues even though total home sales have been on a 13-month decline in South Florida. Notably, the report also reveals a significant annual increase of 12.9% in closings where buyers paid between $600,000 and $1 million for a house or condo in Miami-Dade.
In comparison, the median U.S. existing home sales price for houses and condos stood at $396,100 last month, witnessing a 3.1% annual drop – the most significant annual price decline since December 2011.
One intriguing aspect of the South Florida real estate market is the high percentage of cash transactions. In May, approximately 41% of home deals in Miami-Dade and Broward were cash transactions, significantly higher than the national average of 25%.
So, what’s behind this unprecedented trend in Miami-Dade’s real estate market? Experts trace its roots back to the pandemic when residents from expensive markets like New York, Chicago, and San Francisco decided to move south. This trend has not only persisted but continues to thrive today.
In conclusion, with low housing inventory and sustained strong buyer demand, Miami-Dade’s real estate market is imbalanced, favoring sellers. Consequently, it poses a formidable challenge for the local middle-class buyers aspiring to own a home in the region.
Keywords: Miami-Dade real estate market, median sales price, housing inventory, single-family homes, Miami Association of REALTORS®, housing market trends, cash transactions, South Florida real estate.
