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As House Prices Continue At New Records, South Florida Buyers Opt For Condos

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It’s now officially a trend. Condos are back.

After a sales surge of single-family homes through most of 2020, condos were South Florida’s best sellers in December — for the third month in a row.

Total home sales rose more than 20% in Miami-Dade and Broward in December 2020 as compared with December 2019, according to the Miami Association of Realtors report. Condo transactions outpaced those of houses in October and November after months of buyers favoring houses. Once again, median sales prices for single-family homes hit a new high in both counties. Condo prices rose as well but remained a relative bargain — 40% less than a house in Miami-Dade and 53% less in Broward.

“Favorable pricing and a wide array of condo options are drawing buyers to high-rise living,” said Nancy Klock Corey, Coldwell Banker Realty regional vice president for southeast Florida. “Single-family home inventory is shrinking and there will not likely be a downward pressure on pricing in the short term,” Corey said by email. “Pricing choices are driving both end users and investors to condos.”

Wealth migration is driving sales, especially from high-tax states like New York, New Jersey, Connecticut and Pennsylvania. Many buyers are opting for luxury condos — units starting at $1 million — in Miami Beach, Sunny Isles Beach, Key Biscayne, Coral Gables and Fort Lauderdale.

Miami-Dade

Total home sales rose by 23.3%, from 2,424 in December 2019 to 2,990 in December 2020. Condo sales grew by 29.4% while sales of single-family houses grew by 16.9%. Miami-Dade has 11.8 months of supply of condos and 3.3 months of single-family homes. A balanced market consists of six-to-nine months of inventory.

The median sales price increased by 12% for condos, from $245,000 to $274,500. The median sales price for single-family homes is a record $454,900, up from $450,000 in November, and up 19.7% from the December 2019 price of $380,000. Condos closed at 94.3% of the listing price, up slightly from 93.7% last year. Single-family homes closed at 97% of the listing price, up from 95.6% in December 2019.

Cash buyers comprised 32.2% of total sales, down year-over-year from 33.9%. Still, the percentage of all-cash buyers was well above the national figure of 19%.

Broward

Total home sales increased by 26.5%, from 2,697 in December 2019 to 3,413 in December 2020. Condo transactions grew by 28.5% while single-family houses rose by 24.5%. Broward has 5.6 months of supply of condos and 2.1 months of houses.

The median sales price grew by 11.1% year over year for condos, from $180,000 to $200,000. The median sales price for single-family homes was $430,000 — up from the median of $425,000 in November and up 13.2% from December 2019’s $380,000. Condos closed at 94.9% of the listing price, edging up from 94.3% last year. Single-family homes closed at 97.7%, up from 95.7%.

Cash buyers comprised 30.6% of total sales, down year-over-year from 33.7%.

COVID Impact On Miami Real Estate

Source: Miami Herald

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