South Florida Homes Keep Getting More Expensive

South Florida Homes Keep Getting More Expensive

South Florida home prices are still rising despite a market slowdown.

Home prices in Miami-Dade, Broward and Palm Beach counties rose 7.1 percent year-over-year in August, according to the closely watched S&P CoreLogic Case-Shiller Index.

That was better than the national average of 5.3 percent. But the local housing market has cooled significantly in the last year because of a strong dollar and weak global economy.

Major metro areas that saw higher price jumps than Miami were Portland, Oregon (11.7 percent), Seattle (11.4 percent), Denver (8.8 percent), Dallas (8.1 percent) and Tampa (7.6 percent). From July to August, Miami home prices went up .4 percent, just shy of the national average of .5 percent.

As in many cities, the slowdown has hit South Florida luxury real estate harder than the rest of the market. Tight inventory for affordable homes is leading to bidding wars and escalating prices.

“Home sales are well short of previous cyclical peaks, but homebuilders have been very cautious with their development programs,” Ian Shepherdson, chief economist for Pantheon Macroeconomics, wrote in a research note. “As a result, inventory remains very tight and home prices are trending higher.”

The overall real estate market has slowed down in South Florida this year, but there’s still buyer appetite for mega mansions and pricy penthouses with a $20 million-plus price tag.

The Business Journal has covered 17 single-family home or condo sales of $20 million or more so far this year. That doesn’t count transactions between related parties, such as a transfer during a divorce or family legal procedure where the price might not be reflective of the open market value.

According to brokerage EWM’s analysis of MLS data for existing properties, there’s been a slight decline in the $10 million-plus home market in South Florida this year. There were 16 single-family home sales of at least $10 million in Miami-Dade for the 12 months ended October 2015, down from 21 sales in the same period a year ago. In fact, that’s the lowest total since there were 10 sales in the same period in 2011. Yet, there were 102 single-family homes on the market in Miami-Dade asking at least $10 million at the end of October - the more than anytime over the past 10 years.

In Miami-Dade’s condo market, there were 10 sales of at least $10 million for the 12 months ended October 2016, down from 11 in the same period a year ago. Only three years out of the past 10 had at least 10 condo sales of $10 million-plus. However, the 85 existing condos on the market for at least $10 million at the end of October was also the highest on record. At sales pace of 10 per year, it would take 8.5 years to sell them.

Laurie and Harvey Marcus Headshot
Phone: 954-540-9863
Dated: February 1st 2017
Views: 161
About Laurie and Harvey: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Exit Realty Premier Elite
8961 Hypoluxo Road
Lake Worth, FL

Other Locations