Florida’s Real Estate Shake-Up: Condos Down, Homes Slowing Too

Photo byCanva

It’s no secret that the South Florida real estate market has been a rollercoaster ride lately. In August, condo sales took a significant plunge, while single-family home sales experienced a more moderate decline, according to the latest data.

What's Happening with Home Sales?

The single-family home market in the tri-county area (Miami-Dade, Broward, and Palm Beach) saw a 4.1% drop in sales compared to August last year, totaling 3,238 homes sold. Interestingly, the median sales price nudged up by 2.1% to $620,000 but stayed below the record high of $650,000 set in June.

Statewide, single-family home sales fell by 1.1%, with a total of 22,675 sales. The median price dipped slightly to $411,638. Naples saw the biggest drop in sales volume at 22.6%, while Punta Gorda experienced the most growth at 14.1%. So, it’s a mixed bag, depending on where you look.

Condo Market Takes a Big Hit

The condo/townhouse market didn’t fare as well. In South Florida, condo sales tumbled 14.8% to 3,005 units sold, with the median sales price staying flat at $330,000—still below the peak of $355,000 reached back in May. Throughout Florida, condo/townhouse sales were down 14.9% to 7,898 units, with the median price dropping 4.3% to $310,000.

Brad O'Connor, Chief Economist for Florida Realtors, noted that new listings are starting to align more with pre-pandemic trends, saying, “It wouldn’t be surprising to see this year’s new listings end up in the same neighborhood as those from 2018 and 2019.”

Why the Dip in Condo Sales?

The aftermath of the tragic Champlain Towers South condo collapse in Surfside three years ago has led to stricter state regulations for condo inspections, repairs, and reserves, which has been tough on older condo associations. These regulations have caused maintenance fees and assessments to rise, prompting many condo owners to put their units up for sale. However, not all buyers are eager to take on the cost and uncertainty that comes with older units, leading to an oversupply of such condos on the market.

Breaking It Down by County:

Miami-Dade County:

• Single-family homes: Sales rose by 1.7% to 964 units, and the median price increased to $640,000. The luxury market ($1 million and up) was up 11.6%. Active listings jumped by 37%, but it’s still a seller’s market with 4.7 months of inventory available.
• Condos/townhouses: Sales dropped 15.6% to 1,038, and the luxury condo market took a hit, with sales falling by 23.1%. There’s now 9.5 months of inventory, making it a buyer’s market.

Broward County:

• Single-family homes: Sales were down by 1.4% to 1,161, with the median price edging up to $606,000. Active listings increased by 59%, and there’s now 4.5 months of inventory—still a seller's market.
• Condos/townhouses: Sales fell 10% to 1,109, and luxury sales dropped by 27.8%. With active listings up by 98%, it’s an 8.3-month inventory, solidly a buyer’s market.

Palm Beach County:

• Single-family homes: Sales dipped 10.9% to 1,113, with a median price of $617,500. The luxury market was down by 4.7%, and there’s 4.7 months of inventory—again, a seller’s market.
• Condos/townhouses: Sales plummeted by 19.5% to 1,066, but the luxury condo market saw a 7.1% boost in sales. With active listings soaring by 77%, there’s now 7.1 months of inventory, favoring buyers.

Miami Realtors Chairman Gus Fonte is optimistic, saying, “The Federal Reserve’s recent interest rate cut should help fuel more buying activity in Miami’s high-demand market.” However, with some homeowners facing higher fees and assessments, it’s clear that the real estate landscape in South Florida is shifting. Whether this trend continues into the fall will be something to keep an eye on.