By now our South Florida readers are used to seeing a constant stream of good news about the local residential real estate market. It probably seems like it has been months since anyone had anything negative to say about residential property in South Florida. That could be changing, however, as a recent report indicated that the data from the month of October showed a bit of a slowdown in some areas.
According to the report, sales of both single-family homes and condos slowed down in October. While fluctuations in real estate markets are common throughout the country, and especially as the winter months approach, the South Florida market has shown an unusual resilience for over a year now. The slowdown in sales could be seasonal, but there may be more to it as we see ongoing residential development potentially playing a role.
But, the report had some good news to hopefully balance out the bad news. While sales may have slowed down the existing inventory of residential real estate in South Florida remains tight, and as a result median sales prices in both Miami-Dade County and Broward County shot up by double digit percentages. Prices in Miami-Dade County rose by 18.9 percent, while prices in Broward County shot up a whopping 27.6 percent. It appears that bidding wars remain common – which will certainly put a smile on the face of those selling real estate in South Florida.
Many experts watch data like this closely, trying to determine whether the real estate market is getting better or worse by the month. However, for many South Florida residents the only data that matters is the figures associated with the purchase or sale of the real estate they are negotiating over. In times like that, it is always a good idea to know where the market stands in order to accurately assess each party’s negotiating power.
Source: Miami Herald, “South Florida home prices jumped by double digits in October,” Martha Brannigan, Nov. 20, 2013