By Gay Cororaton, MIAMI REALTORS Chief Economist
While homes are staying on the market longer compared to one year ago, properties are still selling faster compared to 2019 in Southeast Florida.
In July 2024, single-family homes were typically on the market for about a month in Miami-Dade (29 days), Broward (30 days), Palm Beach (35 days), and Martin (33 days). These are still shorter times on the market compared to the median days on market of about 50 days in July 2019.
Single-family properties continue to sell faster compared to pre-pandemic levels due to tighter supply conditions. The inventory of single-family homes is still below July 2019 levels in Miami-Dade (-39%), Broward (-19%), Palm Beach (-21%), and Martin (-27%).
The months’ supply of single-family homes in July 2024 is below pre-pandemic levels in Miami-Dade (4.4 vs. 6.0 ) and Martin (4.3 vs. 4.9) and is hovering at pre-pandemic levels in Broward (4.4 vs. 4.2) and Palm Beach (4.5 vs. 4.5).
In Miami-Dade, Broward, Palm Beach, and Martin, month’s supply of single-family homes is below six months for homes below $1 million. For million-dollar homes, the current months’ supply of 7 to 9 months are well below the 18 months to 23 months’ supply in 2019.
In the condo market, month’s supply is now at over 6 months across price tiers in Miami-Dade, Broward, and Palm Beach. However, those levels are still below pre-pandemic levels. For example, in Miami-Dade County, months’ supply was at an extremely elevated level of about four years in 2019 compared to a little over a year of supply in 2024.
In the condominium/townhome market, active inventory is above pre-pandemic levels except in Miami-Dade (-36%). Miami-Dade County is experiencing tighter conditions (9.1 vs. 13.3. In Broward and Palm Beach counties, months’ supply is still below pre-pandemic leveles across most price points except in the $250,000 to $300,000 price tier where inventory has built up.
Single-family home prices continue to appreciate although at a modest pace compared to 2021-2022. The median single-family home sales price rose to an an all-time high ($670,000) in Miami-Dade while prices rose to all-time June highs in Broward ($625,000) and Palm Beach County ($644,500). The median single-family sales prices rose at or above the national rate of 4.2% in Miami-Dade (6.1%), Broward (4.2%), and Palm Beach (7.4%).
A higher share of wealthier cash buyers has sustained demand and price appreciation. The share of cash buyers has remained elevated in nearly all counties, particularly in Palm Beach, Martin, and Miami-Dade counties. In Palm Beach County, cash buyers made up 41% of single-family sales, up from 30% in July 2019.
In July 2024, existing single-family home sales rose in all the Southeast Florida counties, an indication that the housing market downturn is turning a corner. Sales are likely to pick up further on a sustained basis as mortgage rates continue to decline in the coming months, likely to the mid-5% at the end of 2025. As of the week of August 22, the 30-year fixed mortgage rate fell to 6.46%. Chairman Powell remarked at the Federal Reserve Bank of Kansas City Jackson Hole Economic Symposium that “the time has come for policy to adjust”, indicating a high probability of a rate cut in September.
Download the July 2024 Southeast Florida Housing Report below.
