The past year has seen an alarming rise in South Florida housing prices, despite steady mortgage rates
It seems like South Florida's housing crisis isn't ending anytime soon. Even though mortgage interest rates were rising steadily, South Florida housing prices continued to soar by double digits in October.
The most recent monthly sales data from the Miami Association of Realtors revealed that prices for single-family homes and condos in Miami-Dade and Broward counties skyrocketed. Compared to October last year, home prices rose by 10% to 20%.
The price of home ownership in South Florida
Despite a nationwide decline in the housing market, the cost of buying a home in South Florida remains well beyond the means of many middle-class families. Even though yearly house sales were down this year, the supply of properties on the market is at an all-time high, and interest rates are twice as high as they were in 2021.
The average sale price of a single-family home in Miami-Dade County was $575,000 in October, while the average sale price of a condominium was $388,531. There was a time when houses sold for $490,000, 17% less than they do now. As of October 2021, the median price of a condo was $326,790, a decrease of 19% from the previous year. In Broward, a typical home price was $540,000 last month, up 10% from October 2021. Condominium prices increased by $15, bringing them to $262,000.
South Florida housing prices and market survival
It may seem surprising that the housing market in this area continues to see price increases when market conditions are stable, but experts say there's a good reason for this. Despite the high prices, there is still a sizable queue of purchasers from all over the country and the world eager to purchase a house in South Florida. That means many people with middle incomes or those looking to buy for the first time will have to wait and continue renting for the foreseeable future.
Stay tuned to Calle Ocho News as we continue to cover breaking news and expert opinions on South Florida's real estate market. Subscribe to our news publication to keep receiving the latest news, updates, and much more from Miami.