Miami-Dade’s real estate market reaches record high prices again
DORAL, FL – Miami-Dade’s real estate market prices rise to a record high for the second consecutive month, according to the housing market update released by the Miami Association of Realtors.
The median sales price for single-family properties was of $620,000 in May, up from $575,000 a year ago and $600,000 in April, says the report, in which it was also revealed home’s availability is tight.
A good market offers six to nine months of homes, while Miami-Dade’s real estate market only has a 3.3-month supply of houses and 5.1 months of condo inventory.
In contrast, last month the neighboring Broward had a midpoint sales price for single-family of $585,000, down slightly from $586,000 in May 2022.
The rising prices now places Miami urban area as one of the least affordable housing markets in the country even though total home sales plunged for the 13th consecutive month in South Florida in May. According to the report, there was an annual spike of 12.9% of closings in which buyers paid between $600,000 and $1 million for a house or condo in Miami-Dade.
Last month, the county was also well above the rest of the United States as per the report. The median U.S. existing home sales price for houses and condos was $396,100, down 3.1% from a year ago, making it the largest annual price drop since December 2011.
In addition, South Florida in general experimented a much higher percentage in May of home purchases that closed with cash. Nearly 41% of home transactions last month were cash deals in Miami-Dade and Broward, which is way higher than the national average of 25%.
The reasons behind the trend in Miami-Dade’s real estate market are complex. According to experts, this started back in the pandemic when people from New York, Chicago and San Francisco, among other cities that have an expensive housing market, decided to move to this part of the country. Today, this trend continues to exist.
In the current situation, there is low housing inventory and continued strong buyer demand, leaving Miami-Dade with an imbalanced housing market that favors sellers but makes it a struggle for middle-class local buyers to afford a home.
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