South Florida home values rose and sales volume increased significantly from January’s sluggish sales in April. Palm Beach retains the strongest South Florida real estate market with soaring home values and sales. Miami experienced slower sales and rising home prices largely due to the significant loss of foreign buyers.
In April, the median sale price for a home in Palm Beach County, combined single family, and condos was $220,000. In less than six months, property values more than doubled at a 52% increase. Sales volume hit $1,220,085,854 in April, a significant increase from January’s $730,809,724 total in sales. The Palm Beach market continues to thrive. It’s an aggressive market with rising prices and homes selling faster than any other region in South Florida.
Broward also experienced a strong increase with a median sale price of $196,000 in April, which was up from $150,000 in January. In four months, home values rose 31% in the county. Meanwhile, sales volume in Broward rose from $730,809,724 in January to $1,220,085,854 in April. Condos are in big demand in Fort Lauderdale, and beach communities such as Hillsboro continue to be popular places among Northeasterners.
Miami-Dade experienced the weakest median price increases starting at $145,000 in January and rising to a median sale price of $175,000 in April. It marks a 21% increase in the median home value for the county. Sales volume grew from $868,796,254 in January to $1,159,253,111 in April. Until Latin America recovers from its economic turmoil, Miami will sustain slower sales. As South America works through a weak economy and the dollar remains strong, we can expect these conditions to continue for the remainder of this year, and most likely into 2017. If you are looking for a good deal on a Miami condo, the second half of 2016 will be a good time to purchase. We are seeing price reductions across the county.
As we’ve noted before, Palm Beach County is the hottest market in South Florida. While interest rates may rise this year, it is likely to be a minimal increase that will have little impact on financing through the end of 2016. West Palm Beach is also beginning to really gain in popularity. It’s become a vibrant place attracting a younger demographic. It’s a good bet for investing in property in 2016. With very little inventory, the island is still the most exclusive place to own in this part of South Florida
As we head into June, sales will slow with an expectation that they will pick back up in September. With some sellers more open to negotiating on prices, now is a good time to buy in South Florida. Overall, the significant sales volume gains reflect rising home prices more than it does an increase in the number of homes actually sold.
Michelle Farber Ross