As we have written about in various articles on this blog, The Sunshine State has been arguably the most popular state in the nation during the past several years. Like the rest of the country however, the South Florida housing market has been plagued by an extremely low inventory of homes for sale. Meanwhile, the number of Americans relocating to paradise has skyrocketed in recent years. Historically, a large percentage of Americans relocating to the area have been retirees. However, this has completely changed particularly since the start of the pandemic. Perhaps the single biggest factor impacting migration patterns to Florida has been the adoption of the virtual workplace. With geographical barriers removed from the workplace, we have seen more working-aged Americans relocating to South Florida than ever before. Not surprisingly, increased demand + limited supply = rising prices. To put these prices into perspective, we discuss recent home price trends in South Florida below.
A 4-year snapshot of home prices in South Florida
According to ISG World’s 2022 Q1 Miami housing report, single-family homes have seen a dramatic rise in prices since 2018. In addition, the condo market also experienced similar price growth, although not quite as dramatic. Looking at Miami-Dade, Broward, & Palm Beach counties, we have seen single-family home prices more than double since 2018. Below are the average single-family home & condo sale prices by year:
Single-family home prices:
- 2018: $447,425
- 2019: $550,333
- 2020: $693,420
- 2021: $915,314
- 2022: $1,065,993
Condo prices:
- 2018: $517,768
- 2019: $508,883
- 2020: $522,414
- 2021: $546,617
- 2022: $683,271
Summary
The total number of active listings for both single-family homes and condos have dropped by more than half since 2020. This lack of inventory combined with rising buyer demand has led prices even higher in spite of rising mortgage interest rates. Although the Florida economy is quite robust and getting stronger with more companies relocating to the area, home prices have many locals concerned. The fear for many Floridians is that home prices will ultimately mirror those in more expensive coastal markets such as California. Although home prices are expected to stabilize or slightly retract throughout most of the country, Florida may be an exception. Do you have questions about the South Florida housing market? We can help. Contact Natasha at Live South Florida Realty, Inc. today!
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
