Are Home Prices in Florida Dropping?
Home prices in Florida have dropped in recent months. Existing home sales fell 5.9% in June and July compared to the same time last year, and the median sale price in Miami-Dade County dropped 53 percent. In Broward County, median sale prices are down to $375,000 compared to $346,000 a year ago.
Existing-home sales dropped 5.9% from June to July
The state’s existing-home sales dropped for the sixth consecutive month in July, the worst month since May of 2015. The seasonally adjusted annual rate was 4.81 million, down 5.9% from June and 20.2% from July of 2015. While prices rose in July, the median price fell by nearly $10,000, compared to last month’s record high. As a result, the unsold inventory of existing homes rose to 1.31 million, equal to about 3.3 months of current monthly sales.
Sales of previously owned homes in Florida fell almost 6% from June to July, according to the National Association of Realtors. The pace of sales declined to 4.81 million units, the slowest pace since November 2015. July’s sales fell 20% from the same month a year ago, despite the Covid pandemic that temporarily slowed sales in the month.
Miami-Dade’s median sale price fell 53 percent compared to last year
Residential sales in Miami-Dade county fell 53 percent last month compared to July 2014. The median price of houses fell by 27 percent to $571,250, and condos dropped by 39 percent to $375,000, according to the Miami Association of REALTORS. However, median prices did rise slightly compared to June, when they fell 12 percent and 38 percent, respectively.
Miami is also home to the National Hurricane Center and the United States Southern Command, which oversees military operations in Central and South America. The city is also a major industrial center, especially in the areas of stone quarrying and warehousing.
Meanwhile, schools in Miami-Dade are struggling to compete with other schools in the state. Schools in Miami-Dade are understaffed and the median sale price has dropped 53 percent from last year. That’s a problem that will only get worse in the years to come.
Broward County’s median sale price dropped to $375,000
In August, the median sale price of homes in Broward County dropped from $600,000 to $375,000, confirming signs of a cooling residential property market. In the past few months, prices have been soaring due to a lack of available inventory, high demand, and inflows of out-of-state consumers who overbought and under-bid native buyers.
Single-family home and condo prices in Broward and Miami-Dade counties both fell in August. In Miami-Dade, the median sale price of a single-family home decreased to $551,250 in August from $570,000 in July. Meanwhile, the median price of a condo fell from $385,000 in July to $375,000 in August. Since the beginning of the year, home and condo prices in the area had steadily climbed. In June, median prices had reached historical highs of $579,000 for a single-family home, and $410,000 for a condo.
In January, Broward County’s median sale price was $375,000, down from $380,000 in December. However, despite the decline, prices across Florida remain strong. Every two homes sold creates one new job. Additionally, the typical home sale in Florida generates about $90,300 in economic impact. In January 2022, Broward’s median sale volume increased by 30.2% from last year, and only 1.1% of sales were distressed.