May sales numbers for Miami-Dade and Broward real estate reflect rising prices for single family homes and a decline in all cash sales. The median sale price for Miami-Dade in May was $295,000 representing a 4.6% increase from May of last year. Meanwhile, the number of buyers who paid in cash declined by 12.1%. The average sale price for a single-family home was $444,938 and the dollar volume $525M. Homes are selling faster than they did last year at 98-days and inventory is down 7.8%. Single-family homes closed a total of 1,180 for the month of May.
Meanwhile, Broward real estate market is exploding. There were a total of 1,671 closed single-family home sales for the month of May with 440 cash buyers. The median sale price for a single-family home was $312,500, which was up 7.8% from last year. The dollar volume exploded to $640.2M- marking a 14.2% increase from last year. Homes are selling at a median of 89-days. Broward real estate is really hot as buyers shift their attention to Fort Lauderdale in search of better deals than what prime neighborhoods in Miami offer. This market has also seen a big influx of cash buyers.
Fort Lauderdale has really come into its own this year as a place to buy. Reviving its former reputation as a city just for retirees, and Fort Lauderdale is gaining in popularity. Buyers that normally would be purchasing in Miami are choosing Fort Lauderdale and a few key beach communities instead. Across the US, major market cities real estate prices have topped out, which is driving buyers to secondary markets looking for better deals. These markets offer more square footage, as well as bells and whistles for a smaller price tag. For speculators, it’s an opportunity to purchase in a market where there is still room for strong appreciation. This trend is driving real estate prices and sales across South Florida. The single-family home market across Broward and Miami-Dade holds strong in the million plus market.
Second-tier cities are attractive investment options. It’s an accelerating trend. Major gateway cities are experiencing a slow-down in demand. These markets are considered mature with little room for big gains in short term home value appreciation. The general consensus is that properties in second tier cities are considered smart buys. While they may not carry the cache of purchasing in a city such as Miami, those who choose second tier cities will fair much better in their investment than those who purchase in mature markets. If the goal is to make a profit than second tiers are a great option. This trend is not to dissuade from purchasing in mature markets either. It boils down to your reason and motivation for purchasing property.
Up and down the Gold Coast, there are some great real estate opportunities. Factors such as location, weather, security, tax policies and lifestyle makes South Florida one of the most attractive places to purchase property right now, and that’s not expected to change anytime soon. It’s a hot, secure market.
*Data courtesy of Miami Realtors
Michelle Farber Ross