The real estate industry is abuzz with rumors of an impending housing market crash in South Florida, reminiscent of the Great Recession in 2007. Limited new supply has driven up median home values while slowing down buyer activity. Many local homebuyers and investors are concerned about the possibility of a bubble bursting in the Miami metro housing market.
To gain insight into the Southeast Florida real estate market's current state and its future outlook, it's essential to examine key statistics for Miami-Dade County, Broward County, and Palm Beach County:
Average Sales Price:
- Miami-Dade: $1,034,110 (down from $1,054,421 in June 2022)
- Broward: $823,005 (down from $823,928 in June 2022)
- Palm Beach: $1,066,235 (down from $1,182,748 in June 2022)
Median Sales Price:
- Miami-Dade: $622,500 in 2023 (compared to $579,000 in 2022, a 7.5% increase)
- Broward: $615,000 in 2023 (from $590,000 in 2022, a 4.2% increase)
- Palm Beach: $625,000 in 2023 (from $620,000 in 2022, a 0.8% increase)
Average Rent Price:
- Miami-Dade, Miami: $3,500
- Miami-Dade, Miami Beach: $3,650
- Miami-Dade, Sunny Isles Beach: $5,500
- Miami-Dade, Aventura: $3,625
- Miami-Dade, Key Biscayne: $7,625
- Broward, Fort Lauderdale: $3,200
- Broward, Pompano Beach: $2,800
- Broward, Pembroke Pines: $2,800
- Broward, Hollywood: $3,250
- Broward, Hallandale: $3,400
- Palm Beach, Palm Beach: $11,500
- Palm Beach, West Palm Beach: $2,900
- Palm Beach, Boca Raton: $3,500
- Palm Beach, Delray Beach: $3,250
Home Sales (Single Family):
- Miami-Dade: 1,004 in June 2023 (down from 1,139 in 2022, an 11.9% decrease)
- Broward: 1,256 in June 2023 (down from 1,440 in 2022, a 12.8% decrease)
- Palm Beach: 1,428 in June 2023 (down from 1,472 in 2022, a 3% decrease)
New Pending Sales (Single Family):
- Miami-Dade: 1,064 in June 2023 (up from 1,057 in 2022)
- Broward: 1,209 in June 2023 (down from 1,363 in 2022)
- Palm Beach: 1,277 in June 2023 (up from 1,251 in 2022)
Median Days on Market:
- Miami-Dade: 71 days in June 2023 (up from 60 days in 2022)
- Broward: 60 days in June 2023 (up from 51 days in 2022)
- Palm Beach: 73 days in June 2023 (up from 55 days in 2022)
Cash Sales (Single Family):
- Miami-Dade: 267 sales were in cash in June 2023 (compared to 344 in 2022, a -22% change)
- Broward: 328 sales were in cash in June 2023 (compared to 404 in 2022, a -18% change)
- Palm Beach: 613 sales were in cash in June 2023 (compared to 689 in 2022, a -11% change)
Months Supply of Inventory:
- Miami-Dade: 3.3 months in 2023 (up from 2.8 months in 2022)
- Broward: 2.7 months in 2023 (up from 1.9 months in 2022)
- Palm Beach: 3.0 months in 2023 (up from 2.3 months in 2022)
New Listings:
- Miami-Dade: 1,241 new listings in June 2023 (down from 1,939 in 2022)
- Broward: 1,524 new listings in June 2023 (down from 2,149 in 2022)
- Palm Beach: 1,555 new listings in June 2023 (down from 2,151 in 2022)
The data suggests that while the South Florida real estate market may shift towards being more buyer-friendly in 2023, limited new supply still gives sellers an advantage. Factors like interest rates, economic conditions, and inflation play a role. A crash is possible due to factors such as pricing out buyers, economic downturn, and interest rates, but it's also unlikely due to low inventory, new buyers, personalized lending, and an inflation slowdown.
In 2023, the market may see decreased sales activity compared to 2022, especially without interest rate reductions or increased inventory. However, ultra-luxury properties remain in demand. Overall, while corrections may occur, a complete crash seems improbable.
If you're considering South Florida real estate investments, consult experts like Victoria Shorten with local knowledge that can help you make informed decisions. Victoria is a leading expert in Miami real estate and is signed to Serhant brokerage in Miami, as seen on ‘Million Dollar Listing’.
Ask Victoria on WhatsApp (786) 449-1518 or [email protected]
