Elevated mortgage rates have continued to be a drag on the housing market, but there are areas of resilience and vibrancy at the local level.
At the county level, Miami-Dade County continues to be Southeast Florida’s housing market powerhouse. In November, only Miami-Dade County saw an increase in single-family sales, up 1.3% from one year ago, while single-family sales fell in Broward County (-2.1%), Palm Beach County (-9.0%), Martin County (-3.8%), and St. Lucie County (-16.9%).
Miami-Dade County also saw the strongest increase in the median single-family sales price, up 5.7% year-over-year compared to slower or negative growth in Broward County (3.3%), Palm Beach County (0.0%), Martin County (-7.6%), and St. Lucie County (-1.1%).
Active inventory of single-family homes as of the end of November rose in all counties, rising to 5 months’ supply, indicating that Southeast Florida remains a seller’s market. However, properties stayed on the market longer, typically at over two months to three months on the market.
Meanwhile, condominium sales dipped at a double-digit rate e except in Martin County in November. Despite the sales downturn, the median sales prices rose in all counties, except Martin County. Buyers are getting higher discounts in the condominium/townhomes market compared to the single-family market. However, these sales discounts are not significantly different from the pre-pandemic levels, suggesting that the effect of the recently passed condominium safety regulations (SB 4-D) are on transactions, not prices.
At the sub-county level, MIAMI Realtors® assessed the hotness of the housing market based on sales growth, price growth, months’ supply, days on market, and the level of sales (3-month rolling) to account for the size effect. Only areas with both higher sales and price growth and markets with at least five sales on average are identified as a hot market. In November, 31 municipalities made it to Southeast Florida’s Hot Housing Markets list.
Miami-Dade County: Florida City are Hottest Markets
In Miami-Dade County, unincorporated areas made up 12 of the 16 hottest single-family markets, led by Florida City, The Crossings, and Westchester, all posting double-digit sales and price growths, with 3 to 4 months’ supply of inventory and properties on the market typically for less than two months. In Florida City, properties were typically on the market for 11 days. What is driving the vibrancy growth in Florida City is affordability, with the median sales price of $567,400, which is below the median single-family sales price in Miami-Dade of $650,000.
Among the large markets with at least 100 sales in the past 3 months, Homestead was the hottest market with sales also rising at a double-digit pace. Again, what is driving growth is affordability, with its median sales price of $542,750.
A million-dollar market that made it to the hot market list is Ojus, with sales also rising at a double-digit pace. What is driving this market are wealthy buyers, with half of sales as all-cash.
In the condominium market. Just three areas made it to the list: Fontainebleau, Glenvar Heights, and Coral Gables. Seventy percent of condominium sales in Corla Gables were all-cash.
Broward County: Hollywood and Lauderdale-by-the-Sea are Hottest Markets
In Broward County, six municipalities made it the hot markets list: Hollywood, Southwest Ranches, Coconut Creek, Coral Springs, Lauderhill, and Pembroke Pines. Hollywood and Southwest Ranches were the only areas with double-digit price increases. Coconut Creek and Lauderhill posted the highest sales growth of over 20%, with sales growth driven by better affordability conditions in these markets; the median sales price in Coconut Creek is $560,000 while the median sales price in Lauderhill is $440,000, both lower than Broward County’s median sales price of $619,500. Affordability is also driving demand in Hollywood, where the median sales price is still relatively affordable, at $580,000.
In the million-dollar market, Southwest Ranches made it to the list. With a median sales price of $2 million, 29% of buyers paid all-cash.
In the condominium market, the only hot market is Lauderdale-by-the-Sea, with sales up 28% and the median sales price up 20% in November. Driving market demand are wealthy buyers, with 69% of buyers paying all-cash for properties typically priced at $515,000.
Palm Beach County: Palm Springs and Wellington ad Hottest Markets
In Palm Beach County, five municipalities made it to the hot housing market list: Palm Springs, Boynton Beach, Lantana, Jupiter Farms, and Jupiter.
Affordability is also likely the key driver of the double-digit sales increase in Palm Springs, Boynton Beach, and Lantana, where prices are typically in the mid-$400,000 while Palm Beach County’s median sales price is at $600,000.
Among the million-dollar markets, only Jupiter made it to the list, although sales and prices rose modestly at the single-digit pace. Driving demand in Jupiter are wealthy cash buyers, with 615 of sales as all-cash.
In the condominium market, the only city to make it on the list is Wellington.
Martin County and St. Lucie County: Jensen Beach and Lakewood Park are Hottest Markets
In Martin County there were three hot housing markets: Jensen Beach, Port Salerno, and Sewall’s Point. Cash buyers are the major demand drivers in Port Salerno and Sewall’s Point, accounting for 71% of sales.
In St. Lucie County, only Lakewood Park made the criteria to qualify as a hot market. This is a highly affordable market, with the median sales price at $321,000.
By Gay Cororaton, MIAMI REALTORS Chief Economist
