Sales took a dive across Palm Beach, Miami-Dade and Broward counties in August dipping down to 2011 levels on the heels of the spring/summer rebound from the winter sales slump. It looks as though the market is slowing again going into September with more price corrections expected across the board as 2016 comes to a close.
August Home Sales Across Palm Beach, Broward, and Miami-Dade
In Palm Beach County, sales fell to 4100, which is below 2011’s total sales for the month of August. It’s the slowest single-family and condo homes sales month we’ve seen in years. Miami-Dade also fell below 2011 at 5546 in total homes sales. Broward managed to stay above 2011’s slump at 5292 total sales. August is turning out to be the weakest month for real estate in 2016.
The market slowed significantly across South Florida in August mirroring the larger national real estate trend. As hot markets, experience a cool off in the number of buyers’ decrease and listing prices are lowered. 2015 may mark the peak of the market for the time being with the slowdown expected to continue through the end of the year.
Strongest Real Estate Sales in Million Plus Market
Sales continue to be strongest in the million-plus market. Palm Beach County leads luxury property sales in South Florida. Both Broward and Miami-Dade have seen their luxury sales fall below 2015 levels. On the whole, the top tier continues to outperform the middle tier market. Cash-strapped middle-income America is having a negative effect on mid-tier priced and below real estate sales.
Meanwhile, buyers with cash are beginning to shift their attention to multi-family units and potential rental properties. Investors are looking for investment opportunities beyond top tier and trophy properties. Converting homes for sale into rentals is a growing trend as sellers find it difficult to unload properties, renting them instead has become an alternative and potentially lucrative option. Residential real estate is expected to remain strongest in the luxury market sales while the rest of the market will most likely continue to stagnate through the end of the year.
Michelle Farber Ross