01 Oct Has Demand for South Florida Real Estate Reached a Peak?
Housing demand in South Florida has been off the charts for a while, but there are signs that it may have reached its peak. As property sales for the tri-county area slipped in July this year compared to last year and again in August 2021, some experts see a stabilization in prices coming down the pike.
Dr. Ken Johnson, a real estate economist with Florida Atlantic University’s College of Business, told Florida’s Local 10 outlet that we may be at the peak of a current housing cycle, though he believes we are far from the crash of 2006 because demand still outpaces supply. “So our inventory shortage is a problem we’re not going to solve in the next year or two. It’s going to take a while to catch up,” Johnson said.
While sales volume for single-family homes in South Florida took a dip in August this year, activity in the condo market continued to climb. And despite the slowdown in sales, prices have remained strong all around. The median prices of single-family homes in Miami-Dade and Palm Beach Counties increased 20.3% year-over-year in August 2021 to $500,500 and $480,000, respectively. In Broward County, median prices were up 19% for same period, at $495,000.
In short, though home appreciation and inventory could trend toward more normal levels into the next year, experts do not expect a major correction in prices. The migration pattern to Florida due to its tax-friendly environment and warm climate continues to lift demand.
Are you interested in purchasing a home in Fort Lauderdale or the surrounding South Florida area? Call Fairway Fort Lauderdale today! We would love to help!