Home prices in Miami reach record numbers in February 2024

South Florida home prices set to reach record high through February 2024With significant increases in prices for both single-family homes and condominiums. According to the latest monthly home sales report from the Miami Association of RealtorsThe average sales price of a single-family home in Miami-Dade County is US$650 thousand, while it is US$420 thousand for a condo. In Broward County, prices have reached $625,000 for a home and $290,000 for a condo. This is what they reported Miami Herald.

This increase reflects a 17% increase in single-family home prices in Miami-Dade and 12% in Broward compared to last year. Both counties have seen condo prices increase by 7%. The last time home prices in South Florida reached record highs was in July 2023.

Experts attribute this phenomenon to the influence of wealthy buyers who are driving the residential market in the area. Maria Letdin, a business professor at Florida State University, who spoke to the media above, said that market activity is concentrated in the luxury segment, while the rest of the market may experience a drop in prices due to buyers’ budget limitations.

Douglas Elliman’s Florida 2024 New Contracts Signed report reveals significant growth in the number of single family home contracts Prices in Miami-Dade County topped $500,000, while homes below that figure saw a 38% decline in contracts.

Housing prices and demand remain high due to the migration of wealthy people to South Florida. During the pandemic, The area benefited from the arrival of executives from companies such as Citadel and Amazon, who moved their operations to Miami.Generating job growth and a historically low unemployment rate of 1.4%.

Despite the high sales numbers, the increased inventory is giving buyers more choices in the market. Miami-Dade has a 4.4 month supply of homes and 7.8 month supply of condos, while Broward has a 3.8 month supply of homes and 6.8 month supply of condos. This increase in housing options amid rising prices could be good news for buyers.

However, starting this summer, buyers in South Florida will face a new concern: commission rates nationwide, which will now be the responsibility of buyers, according to a recent change instituted by the National Association of Agents Real Estate.

The South Florida housing market continues to experience rising prices due to demand from wealthy buyers and low availability of inventory. Although this situation may benefit sellers, buyers face a competitive market with ever-increasing prices and new commission rates to consider.