Florida condo sales have dropped by double digits, according to a recent report

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Hey there, South Florida residents! If you’ve been keeping an eye on the condo market, you might have noticed some troubling trends lately. According to the latest report, condo sales in Miami-Dade and Broward counties took a serious nosedive in June, with numbers dropping by double digits. Let’s dive into what’s going on and why this might be affecting your neighborhood.

So, here’s the lowdown: June 2024 saw a hefty 26.8% decrease in condo sales in Miami-Dade compared to the same month last year. That’s a drop from 1,181 sales in June 2023 to just 865 deals this June. Broward County wasn’t spared either, with sales plummeting by 31.7%, from 603 to 412. Ouch!

What’s causing this decline? A mix of factors seems to be at play. For starters, rising homeowners association (HOA) fees are hitting condo owners hard. After the tragic Surfside condo collapse in 2021, which claimed 98 lives, Florida legislators cracked down on condo associations, banning them from waiving financial reserves and requiring them to conduct detailed structural integrity studies. This means higher fees for maintenance and repairs, which many owners are finding tough to handle.

Add to that the unchanging interest rates and skyrocketing insurance costs, and it’s no wonder buyers are hesitating. Jonathan Miller, the brains behind the Elliman Report, pointed out that many buyers were expecting the Fed to cut rates earlier this year, but that didn’t happen. With interest rates staying steady and costs climbing, some folks have decided to hold off on purchasing.

Interestingly, the slowdown isn’t uniform across the board. While condo sales in the more affordable and suburban areas are suffering, luxury beachfront properties and high-end condos in spots like Brickell, Miami Beach, and Aventura are still seeing interest, particularly from international buyers and wealthy locals.

Mike Pappas from The Keyes Company predicts that if this trend continues, we might see condo prices drop soon due to climbing inventory and higher ownership costs. Currently, Miami-Dade has about 8.6 months of condo inventory, and Broward has 7.6 months. Typically, a balanced market has around six to nine months of inventory.

For those in the market, it might be worth keeping an eye on how these dynamics play out. If you’re considering buying or selling, this could be a crucial time to strategize.

Stay tuned, as the condo market is likely to keep evolving, and who knows? We might see some interesting shifts in the coming year. If you have any thoughts or experiences with the current market, drop them in the comments!