Residential Real Estate News
Greater Fort Lauderdale Area Residential Sales Dive 18 Percent Annually in May
Broward County Home, Condo Sales Hobbled by High Rates, Tight Lending Rules
Broward County's residential real estate market continued to lose steam in May, with total home sales falling nearly 18% year-over-year as high mortgage rates and strict financing rules weighed on buyer demand, according to data released by the Miami Association of Realtors.
Total residential transactions dropped 17.8% last month to 2,124 from 2,583 a year earlier. Single-family home sales declined 11.1%, while condo sales plunged 24% -- a sharp drop that underscores a cooling market after years of record growth.
"Sales have remained weak with mortgage rates hovering near 7%," said Gay Cororaton, chief economist for Miami Realtors. "The good news is that affordability conditions are on course to improve, with the Fed expected to resume rate cuts in the second half of the year."
Condo Market Cools After a Decade of Growth
The condo market, once the darling of South Florida investors and retirees, showed signs of price compression. The median condo price dipped 2.5% year-over-year to $275,000 -- down from $282,000 in May 2024 -- although prices remain up 103.7% over the past decade.
Statewide, condo prices fared worse, dropping 6.1% year-over-year.
Single-family home prices in Broward remained flat on an annual basis at $625,000, though that figure marks a 115.5% surge compared to May 2015.
FHA Financing Still a Bottleneck
The limited availability of Federal Housing Administration (FHA) financing continues to choke off potential first-time and low- to moderate-income buyers in the condo market. Just 21 of the 2,397 condominium buildings across Miami-Dade, Broward, and Palm Beach counties are approved for FHA loans -- less than 1% of the total.
Adding to the challenge, Florida requires a 25% down payment for condos under limited review rules without sufficient reserves -- more than double the 10% required in other states.
Inventory Rebounds, But Condo Listings Still Lag Pre-COVID
Despite weaker demand, inventory is on the rise. Total active listings in Broward County increased 35.9% to 17,959 homes in May from 13,219 a year ago.
Single-family inventory rose 34.5% to 5,862 homes, while condo listings climbed 36.5% to 12,097. Still, condo inventory remains below pre-pandemic levels, and new listings for Miami-area condos fell 8.3% year-over-year.
The months' supply of inventory in Broward is now at 5.9 months for single-family homes -- considered a balanced market -- and 12.5 months for condos, which suggests a shift to a buyer's market.
Distress Sales Low, But Market Moving Slower
Distressed sales remained minimal, accounting for just 0.7% of all closings in May -- down from 1.0% a year ago and well below the national average of 3%. Short sales and bank-owned properties made up only 0.09% and 0.6% of total sales, respectively.
Homes are taking longer to sell. Single-family listings averaged 38 days from list to contract, up from 29 days last year, and 78 days to closing, up from 67. Condos took even longer: 65 days to go under contract and 100 days to close, both significantly higher than a year ago.
Cash Still Dominates Condo Market
Cash sales accounted for 35% of Broward closings in May, down slightly from 39% a year ago. That's still well above the national average of 27%, according to the National Association of Realtors.
Cash buyers were especially prevalent in the condo market, where they represented half of all transactions. In contrast, just 21.4% of single-family home sales were all-cash deals.
As the market recalibrates from its pandemic-era boom, economists and real estate professionals are closely watching Fed policy for signals on when relief might arrive for buyers sidelined by borrowing costs.
