November 2023 South Florida Housing Report

What’s happening in the market?

Home sales are down for single family homes and condos/townhomes in both Broward and Miami-Dade counties when compared to this time last year. Palm Beach County single family home sales have also decreased year over year, but condo/townhome sales have increased. The number of new listings as well as average sale price has increased for single family homes and condos/townhomes across all three counties. Mortgage rates in November fell from the October highs, coming down to the low 7s towards the end of the month, per Mortgage News Daily.

What does this mean for Buyers?

• An increase in active inventory as well as new listings is great news for buyers! Inventory has struggled to keep up with relentless buyer demand, especially in South Florida, so more options could lead to less competition and a stabilization or even reduction of prices.
• The prevalence of cash buyers in the region (especially in Miami-Dade County) makes it slightly less susceptible to ever-changing mortgage rates, but for those who are looking to buy with financing, affordability remains a top concern given mortgage rates and current home prices.
• The South Florida housing market is ever-evolving so staying prepared and ready to strike is the key to being successful! Make sure you are staying prepared with updated preapprovals and informed regarding your different mortgage options. Be sure to work with an expert REALTOR® to make sure you are getting the most out of the home buying experience!

What does this mean for Sellers?

• We have seen many want-to-be sellers stay out of the market over the last few months given mortgage rates and concerns over inventory. However, new listings are quickly increasing, especially in Palm Beach and Broward counties, which could indicate that those who have been delaying listing their homes are getting off the sidelines. Therefore, if you are planning to list your home in the coming months, pricing your home competitively will be critical as creating demand for your home as more and more listings come on the market will ultimately give you more negotiating power. This can be even more imperative for those who are buying and selling at the same time. Working with a local real estate expert can help you get the most money for your home!
• In South Florida specifically, condos/townhomes are being listed faster than they are going under agreement which is one of the reasons for increased inventory levels. We expect this trend to continue as stricter regulations and increased insurance premiums are creating challenges for current owners.

What’s next?

Inventory levels in South Florida have risen substantially over the last few months – currently 15% above 2022 levels. Similarly, new listings are up 13% when compared to this time last year. Looking at both of these data points, it is evident that the market is beginning to change, heading more and more towards a buyer’s market.

Remember, in this current economic environment with changing mortgage rates, inflation, ongoing international conflicts, etc., it is difficult to predict what the future may hold, so the best time to get your real estate goals accomplished is when the timing is right for YOU! If you are thinking about buying or selling this winter, there are plenty of opportunities to take advantage of during this time. Look out for Anthony’s 2024 predictions, which will be released in late December, for his analysis of the housing market and what is to come in the new year!