Trends in the South Florida Real Estate Market
South Florida Real Estate Market – Third Quarter (Q3) – 2022
Understanding the current state of the South Florida real estate market is important if you are considering a real estate investment abroad. Understanding the opportunities in each area will allow you to make the best decisions for your financial goals.
Miami-Dade County
The real estate market in this county has undergone significant changes. Compared to the previous year, the single-family home market decreased closed sales. However, a higher percentage of these sales were made with cash or cash (for cash buyers), around 27%.
Compared to 2021, the median value of single-family homes increased by 12%, and sales are closing faster. This suggests that there is a flow of investors, both American and foreign, with large amounts of money at their disposal.
Regarding condos (or apartments), there were 31% fewer sales in total, compared to Q3 of 2021. Even so, a greater number of those sales were made in cash and with a shorter time to close the deal. The current closing time, on average, is 68 days compared to 85 days the previous year.
Although opportunities have increased, the Miami market is experiencing historically low inventory levels. A balanced market, with a moderate price rise, is associated when there is an estimated supply of 5 to 7 months. Miami-Dade currently has only 3,5 months of real estate supply.
Miami-Dade Single Family Home Statistics:
- Closed sales: 2.900
- Supply months: 3,5
- Sale Proportion of the Offered: 97.9%
- Active Offers: 3.912
- Average Price: USD 560,000
- Average Closing: 65 days
Statistics of condos (apartments) in Miami-Dade:
- Closed sales: 4.158
- Supply months: 3,5
- Sale Proportion of the Offered: 97.9%
- Active Offers: 6.399
- Average Price: USD 380,000
- Average Closing: 68 days
Broward county
This county also saw significant changes when compared to 2021. For example, there was a 28% decrease in single-family home sales. Even so, there was an increase in sales that were with cash or cash, reaching approximately 25% of the total.
Single-family homes have increased in price by 15%. Active housing inventory has increased by 52%, with 2,7 months of supply.
Condos (or apartments) in Broward County show similar trends. There are fewer completed sales (4.175 instead of 5.433 in Q3 2021), but the price has increased by 23%.
It's similar to what happens in Miami-Dade County, and you can also see sales closing faster, with the time to sale decreasing by 16%, from 69 days to 58 days.
Broward County Single Family Home Statistics:
- Closed sales: 3.448
- Supply months: 2,7
- Sale Proportion of the Offered: 98.5%
- Active Offers: 3.531
- Average Price: USD 570,000
- Average Closing: 57 days
Statistics of condos (apartments) in Broward County:
- Closed sales: 4.175
- Supply months: 2,2
- Sale Proportion of the Offered: 99.3%
- Active Offers: 3.624
- Average Price: USD 265,000
- Average Closing: 58 days
Palm beach county
In Palm Beach County we see similar real estate trends when we compare the third quarter of 2021 and 2022. There was a 24% decrease in sales for single-family homes, but the sales price increased by 20%.
On the other hand, active inventory increased dramatically by 67%. Like Miami-Dade and Broward, inventory levels are higher than last year, but still low at 2,9 months of supply for single-family homes.
Regarding apartments, Palm Beach County saw a 31% decrease in sales, but prices have increased 24%. Sales closing time has decreased by 6%. Cash sales are similar to last year, with 57% of deals.
Palm Beach County Single Family Home Statistics:
- Closed sales: 3.652
- Supply months: 2,9
- Sale Proportion of the Offered: 96.8%
- Active Offers: 3.977
- Average Price: USD 580,000
- Average Closing: 61 days
Statistics of Condos (apartments) in Palm Beach County:
- Closed sales: 2.989
- Supply months: 2,2
- Sale Proportion of the Offered: 97.6%
- Active Offers: 2.806
- Average Price: USD 290,000
- Average Closing: 57 days
Naples
The Naples area shows interesting trends for the third quarter of 2022. Total sales are down 43%, but closing value is up 11% for single-family homes in September 2022.
Meanwhile, housing offers (called listings) decreased by 30%. Single-family homes stayed on the market a little longer than usual, reaching an average of 42 days, 68% more than September of last year.
The Naples apartment market also saw a decline in new listings and overall sales. In addition, the home's time on the market increased by 65%. Even so, real estate prices are on the rise, with the average closing price increasing by 25%.
The arrival of Hurricane Ian resulted in a mass evacuation and closures in the Naples area. This may have contributed to the decrease in offers and sales completed.
However, less than a month after the event, the interest of locals and migrants from other states rose again. There are investors interested in buying real estate that suffered damage from Hurricane Ian, hoping to get a better price in this competitive market.
Some sellers have chosen to take their properties off the market while necessary repairs are made to the damage caused by the hurricane. This could result in lower inventory in early 2023 and potential home price increases.
Statistics of Single Family Homes in Naples:
- Closed sales: 258
- Supply months: 3.0
- Sale Proportion of the Offered: 98.7%
- Active Offers: 1379
- Average Price: 682500
- Average Closing: 42 days
Statistics of condos (apartments) in Naples:
- Closed sales: 265
- Supply months: 1.6
- Proportion of Sale of the Offered: 99.9
- Active Offers: 767
- Average Price: 446520
- Average Closing: 358 days
We hope this information on the South Florida real estate market will help you when making your next financial decisions. If you are interested in foreign investment but do not know what steps to take, we invite you to schedule a free consultation. Click here.
Do you want to continue investigating? Well, in MiamInmobiliario you will find a lot of information!
check here if you are interested in knowing the rental trends in South Florida, where you can get an idea of the current scenario.