TWO MARKETS. TWO PATHS.
24
15
6-9 MONTHS
6
MAR 2015 MIAMI-DADE
MAR 2016 MIAMI-DADE
11
OPTIMUM SUPPLY RANGE
8
7
15
5
MAR 2015 BROWARD
MAR 2016 BROWARD
MAR 2015 MIAMI-DADE
MAR 2016 MIAMI-DADE
MAR 2015 BROWARD
MONTHS OF INVENTORY
MONTHS OF INVENTORY
SINGLE-FAMILY HOMES ($300,000-$999,999)
CONDOMINIUMS ($300,000-$999,999)
SOUTH FLORIDA REAL ESTATE TELLS A TALE OF TWO MARKETS in the $300,000 to $999,999 price range. The single-family home and condo segments in Miami-Dade and Broward Counties took two different paths during the first quarter of 2016. As of March 31, 2016, the single-family home months of inventory in both counties were comfortably within the optimum range of six to nine months. There were 3,085 homes available for sale priced between $300,000 and $999,999 in the Southeast Florida Regional MLS on March 31, 2016, compared with 2,444 homes for sale one year earlier, representing an annual inventory increase of 26%. Single-family home reports for Broward County showed a drop in inventory from 2,715 homes for sale to 2,696, resulting in a 1% decrease in total inventory for this same price range, while sales increased by 14% year-over-year for the quarter ending March 31, 2016. Miami-Dade County’s single-family home sales for the same price ranges and sales periods increased 12%. The months of supply for single-family homes on March 31, 2016 registered eight months in Miami-Dade and 5 months in Broward…which is all positive news!
However, the condo market reports for properties valued between $300,000 and $999,999 reveal a different story… 24 months of supply in Miami-Dade and 15 months of supply in Broward at the end of March, 2016. Several new development completions, coupled with an increase in investor-owned units being placed on the market for sale and slower sales, have led to steep increases in inventories and corresponding months of supply. Condo inventories and sales in this price segment of the market have largely been affected by the weakening of foreign currencies against the U.S. dollar, in addition to the economic instabilities within some of South Florida’s previously most active foreign markets. These changes have disrupted the flow of foreign buyers into South Florida, which has contributed to the overall decline in sales and rise in months of supply. Miami-Dade condo inventories for properties priced between $300,000 and $999,999 grew by 31% between March 2015 and March 2016 (going from 5,069 units to 6,659 units), with increases in Broward County inventories measuring a 41% increase when comparing March
MAR 2016 BROWARD
2015 to March 2016 figures (going from 1,467 units to 2,068 units). While Broward experienced a 2% increase in sales of condos for the quarter ending March 31, 2016 over the same period in the prior year, Miami-Dade experienced a 19% decrease in sales during the same periods. The South Florida single-family home market continues to experience a healthy balance in the $300,000 to $999,999 price range, which accounts for 37% of all Miami-Dade single-family home sales and 46% of all Broward single-family home sales. However, in the condo market, higher levels of inventory will continue to place increasing pressure on asking prices in order to gain the attention of value-conscious buyers. Industry analysts will continue to watch these trends, as well as the monetary and political trends of foreign countries, in order to project how the South Florida market will perform during the remainder of 2016. For now, and into the near future, the single-family home and condo markets in the $300,000 to $999,999 range will continue to offer two different tales with great values and opportunities in the various communities of each county.
Source: Information presented is based upon data supplied by the Miami Association of Realtors, The Greater Fort Lauderdale Association of Realtors, and the Southeast Florida Regional MLS. Months of Inventory shown are averages of the three months ending March 31st of each identified year.
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