Despite double-digit monthly sales decreases, home prices in Miami-Dade County have reached a new all-time high for the second consecutive month. The scarcity of available housing and sustained high demand from buyers have contributed to this trend, creating an imbalanced housing market that heavily favors sellers. Middle-class buyers face challenges in affording homes, prompting some to explore neighboring counties. The ongoing housing affordability crisis is a concern for leaders in South Florida, as many individuals struggle to purchase homes or find affordable rental apartments.
Despite experiencing double-digit monthly sales decreases for over a year, home prices in Miami-Dade County reached a new all-time high for the second consecutive month. The median sales price for single-family homes in Miami-Dade rose to $620,000 in May, compared to $575,000 a year ago and $600,000 in April, as reported by the Miami Association of Realtors. In contrast, Broward County, which is adjacent to Miami-Dade, saw a slight decrease in the midpoint sales price for single-family homes, dropping from $586,000 in May 2022 to $585,000.
Real estate experts attribute the surging home prices in the Miami area to a prolonged trend that gained momentum during the pandemic. The main factors contributing to this trend are the scarcity of available housing and the sustained high demand from buyers. Consequently, the county now faces an uneven housing market, heavily favoring sellers and presenting challenges for middle-class buyers who struggle to afford homes.
Ideally, a balanced housing market typically consists of a six to nine-month supply of homes. However, Miami-Dade County’s housing sector remains imbalanced, as there is currently only a 3.3-month supply of houses and a 5.1-month supply of condominiums.
The significant rise in both home sales and rental rates has prompted many individuals to explore neighboring Broward County and other alternatives where housing costs are comparatively lower. However, the availability of homes is even more limited in Broward County.
A considerable number of middle-class and first-time buyers in South Florida often choose more affordable condominiums. In the previous month, the median prices for condos remained steady at $415,000 in Miami-Dade compared to the same period last year. However, in Broward County, the median price for condos increased from $253,500 in May 2022 to $270,000.
Despite a continuous decline in total home sales for the 13th consecutive month in South Florida during May, the Miami Realtors’ group reported a notable annual surge of 12.9% in closings where buyers purchased houses or condos in Miami-Dade for prices ranging between $600,000 and $1 million.
In contrast to the national average, South Florida experienced a significantly higher proportion of cash transactions in May. In Miami-Dade and Broward counties, almost 41% of home purchases were cash deals, which is notably higher than the national average of 25%.
The primary concern for leaders in South Florida, both in the public and private sectors, revolves around addressing the ongoing housing affordability crisis, which has worsened since the onset of the pandemic in early 2020. Many individuals in South Florida face difficulties in purchasing homes or finding affordable rental apartments. RentHub reports that the median monthly rent for an apartment in Miami-Dade County is $3,200, further exacerbating the challenges faced by these individuals.
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