What’s Happening with Condo Sales in Miami and Broward? Prices, Supply, and the Impact of Fees

The South Florida condo market, particularly in Miami-Dade and Broward counties, is hitting a rough patch. Prices are dipping, sales are slowing, and inventory is piling up, leaving many to wonder: What’s driving the downturn?

Condo Market Crisis: Rising Fees and New Laws

Condo associations are raising monthly fees and issuing special assessments, contributing to the current slowdown. A new Florida law, introduced in response to the tragic Surfside building collapse in 2021, is also adding pressure. The law requires condo associations to implement a spending plan for major repairs, which has sent costs spiraling for many condominium owners. As a result, buyers are becoming more hesitant, and the market is feeling the effects.

Breaking Down the Numbers: Condo Prices and Sales

In August 2024, the Miami-Dade condo market saw the median sales price dip slightly to $415,000, down from $416,000 in August 2023. Meanwhile, Broward County's condo market held steady, with a median price of $275,000, the same as last year.

The total number of home sales in both counties also took a hit. Miami-Dade saw an 8% decrease in deals, with 2,002 transactions in August. Broward wasn’t far behind, with a 6% drop, resulting in 2,270 total deals. The slowdown in sales reflects the increasing caution among buyers as association fees rise and special assessments loom.

Single-Family Homes Show Resilience

While the condo market is feeling the pinch, single-family homes in South Florida are faring better. In Miami-Dade, the median sale price for a single-family home rose to $640,000, a 3% increase from $620,000 in August 2023. Broward saw a modest rise as well, with the median price ticking up to $606,000 from $600,000 last year. However, like the condo market, total sales for single-family homes have slowed, as buyers weigh their options in a shifting economic landscape.

Cash Deals and Inventory: What the Numbers Reveal

One-third of all condo deals in South Florida are still cash transactions, with Miami-Dade recording 33% and Broward 34%. These figures are well above the national average of 26%, reflecting the strong interest from cash buyers and investors, despite the rising costs.

As for inventory, the supply of condos in South Florida has reached its highest point since February 2021. Miami-Dade now has 9.5 months of inventory, while Broward holds 8.3 months. This growing supply is adding to the market slowdown, as more condos sit unsold while buyers grow cautious amid the financial strain of increased fees and looming repair costs.

What Does This Mean for the Future?

The South Florida condo market is at a crossroads. Rising costs, new laws, and an increase in unsold inventory have cooled what was once a red-hot market. The slowdown comes as potential buyers grapple with higher association fees and the long-term costs of maintaining aging buildings.

However, experts believe the market could stabilize once the effects of the new laws are fully understood and the financial landscape for condo owners becomes clearer. For now, prospective buyers and sellers need to navigate these shifting dynamics carefully, keeping a close eye on market trends and emerging opportunities.

While the condo market may be struggling, South Florida’s real estate sector is still resilient, with single-family homes showing steady growth. The question remains: How will the market evolve as the region adapts to new regulations, rising costs, and shifting buyer preferences? Only time will tell, but staying informed will be key for those looking to make their move in this evolving landscape.

For all your South Florida real estate needs, reach out to the Mastropieri Group to find the ideal home for you. Contact us today at 561-544-7000 to discuss how we can assist you in achieving your real estate goals. Whether you’re buying, selling, or looking for investment opportunities, our team is ready to offer expert advice and support to help you navigate the dynamic South Florida real estate market. Let us put our expertise to work for you and turn your real estate ambitions into reality