MIAMI.- In a real estate panorama that reflects the current economic volatility, Miami-Dade and Broward counties have experienced a notable drop in the number of home sales contracts, both for houses and condominiums.
However, the most recent Elliman Report, a monthly study that details home sales in the country’s most populous states, shows an increase in new listings of real estate for sale.
The analysis indicates that in Miami-Dade, the number of new contracts signed for single-family homes decreased 6.5% in April 2024 compared to the previous year, while the number of contracts for condominiums fell 13.3%.
This trend has been observed during the last three months, with a particular drop in contracts above one million dollarsafter a period of continuous growth.
Despite this contraction in demand, the number of new listings increased by 41.6%, suggesting that the market could be rebalancing, according to the study.
In neighboring Broward County, the situation is similar. Contracts signed for single-family homes fell 23.3%, and contracts for condominiums decreased 27.3%. In the luxury housing segment, contracts decreased after a period of growth.
However, the number of new listings skyrocketed, with an increase of 53.9% for single-family homes and 57.3% for condominiums, indicating that the market could be preparing for a possible recovery.
Interest rates and economic trends
The drop in the number of contracts signed is attributed to high mortgage rates, which have cooled demand, according to the Elliman Report.
In Florida, where the real estate market had been booming for the past decade, these figures reflect an adjustment in current economic conditions.
The increase in new listings could be a sign that sellers are trying to take advantage of the market before conditions worsen or that built-up inventory is finally hitting the market, which could boost sales later this year.
“Most property markets saw prices rise to new highs and sales fall short of year-ago levels. “Mortgage rates have remained elevated while economic conditions remain vibrant,” the report reads.
He adds that “bidding wars remain a factor in the market, but rising inventory has reduced their dominance.”
