Most of our regular South Florida readers have probably seen plenty of our previous posts extolling the positive aspects of the area's real estate market. Residential property has been selling fast in South Florida, and it has been selling at increasingly higher prices. Now, recent data is suggesting that this trend is continuing, but another one is emerging - tightening inventory.
In Miami-Dade County, home sales rose a whopping 41.9 percent in October when compared with October of 2011. There was a 20.9 percent increase in Broward County. Condo and townhouse sales also saw an increase in those two counties, with the rate rising 13.1 percent in Miami-Dade and 16.5 percent in Broward.
Increased demand means increased prices, and both of these South Florida counties definitely saw increases in this category as well. The median sales price of homes in Broward County saw a huge jump of 15.9 percent when compared with October of last year. The median sales price now stands at $211,000. Condos and townhouses had a similar jump of 14.6 percent, with the median sales price now at $90,000.
While the number of sales and the sales prices are jumping rapidly, the inventory rate is plunging dramatically. Residential real estate listings in Miami-Dade County dropped 22.2 percent from the October 2011 figure.
The drop in housing inventory in the South Florida market is likely to fuel further increases in sales prices for at least a bit longer. Previous posts have touched on the rising theme of residential development in the area, which could begin to flood the market with inventory. There is the potential for drastic and quick changes for both buyers and sellers in this market. For anyone looking to jump in, getting the right information about all of the available options could make a sizable difference in the pocketbook.
Source: equities.com, "South Florida home resales, prices rise in October," Martha Brannigan, Nov. 20, 2012