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Is the South Florida real estate market crashing?

Amber Bonefont, South Florida Sun Sentinel on

Published in Business News

2021 was a record year for real estate in South Florida, yet the last eight months of 2022 have been about the market slowing. Questions linger as to how bad the decline in the market is and whether it’s headed for a crash.

There’s little doubt that the market has slowed over the past six to eight months: closed sales are down as buyers grapple with rising interest rates, it’s taking longer to sell a home, and bidding wars are not as common as they once were.

That doesn’t necessarily mean that the South Florida market is crashing.

“There is a lot of confusion when people talk about the slowdown. They automatically think the market is crashing, but it’s not,” said Roni Sterin with the Keyes Company in Weston. “The market did correct itself because it needed to.”

Comparing 2022 to the pre-pandemic 2019 housing market can add additional context to what’s happening now, since 2021 was so exceptional.

“It [2021]was such a national phenomenon that comparing our data to last year, the shift looks very severe in isolation,” said Bonnie Heatzig, executive director of luxury sales at Douglas Elliman in Boca Raton. “Now, the pendulum is starting to swing towards a more normal market.”

 

To gauge where the housing market in South Florida is, the South Florida Sun Sentinel looked at data from 2019, the most recent “non-pandemic” housing market, and compared it to 2022. We considered trends in median prices, inventory levels, price growth and how long it takes to sell a home.

Median sale prices are stabilizing

As of October, the most recent numbers from the Broward, Palm Beaches and St. Lucie Realtors show that while the median sale prices of single-family homes in the tri-county area are still showing double digit year-over-year increases, on a month-to-month basis, the prices have either started to decline or moderate.

It’s not indicative of a housing crash or a decline, rather it signifies that the median sale prices of single-family homes in South Florida are on their way to possibly stabilizing.

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©2022 South Florida Sun Sentinel. Visit at sun-sentinel.com. Distributed by Tribune Content Agency, LLC.

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