More inventory is coming back to the housing market and closed sales are plummeting as the buyer frenzy of the past year starts to taper.
Here is the latest on the South Florida housing market in terms of sale prices, inventory levels and rents:
Sales are plummeting as inventory comes back
Closed sales in South Florida dropped in June over 30% in Palm Beach County, 20% in Broward County and 26.1% in Miami-Dade County according to the latest data from the Broward, Palm Beaches and St. Lucie Realtors.
At the same time, inventory levels skyrocketed compared to the year before for the second month in a row. Active listings shot up 50% in Palm Beach County, while in Broward County they rose 22.5% and in Miami-Dade County they jumped 19%.
It’s a sign of a growing shift in the market: as some buyers back off due to rising interest rates and high prices causing unaffordability, sellers are now trying to take advantage of the real estate market by listing their properties.
“Buyers cannot handle these high prices and high rates … they’re not making offers,” said Patty Da Silva, real estate broker with Green Realty Properties in Cooper City. “And for sellers, I think a big portion of them wanted to take advantage of the market and they were holding for the top, and when it turned a little bit, they put it on the market.”
Buyer frenzy lessens, price reductions
Buyer behavior has taken on less of a frenzied tone, real estate agents said.
“I have seen less bidding wars,” said Bonnie Heatzig, executive director of luxury sales at Douglas Elliman in Boca Raton. “We do have demand, we do have low inventory and the same conditions exist, but it’s not as frenzied as we saw six months ago.”