Demand for housing in South Florida drove prices higher as the median sales prices for both homes and condos increased more than 20% in July.

The rapid price increases have allowed sellers to cash out big time, but has made purchasing a home more difficult for working-class families and first-time homebuyers.

Meanwhile, sales remained strong in the luxury market as many wealthy people moved to the region.

Single-family home sales in the tri-county area increased 1% to 4,827, compared to the same month a year ago. That’s a slower rate of growth than in recent months. The median sales price jumped 25% to $500,000.

Statewide, single-family home sales declined 2.1% while the median sales price climbed 20.3% to $355,000.

In South Florida, sales of condos/townhouses surged 54.7% to 5,799 compared to the same month a year ago, when many people were reluctant to tour multifamily buildings without a Covid-19 vaccine available. The median sales price jumped 22.7% to $270,000.

Throughout Florida, condos/townhouse sales increased 21.1% as the median sales price grew 20.5% to $253,000.

"The 2.1% drop in closed single-family home sales marks the first time that sales in this category have been down year-over-year at the statewide level since May of 2020, near the beginning of the pandemic," said Brad O’Connor, chief economist at the Florida Realtors. "But remember, last year's spring buying season was effectively postponed until the summer and fall by the pandemic, so the second half of 2020 ended up being the strongest second half for sales in at least 15 years. It's not too surprising if sales counts over the next few months fail to surpass their totals from one year ago.

"However, looking at 2019 – the last full year of anything resembling a normal market due to COVID-19 – we find that July 2021 single-family home sales were over 9% higher compared to July 2019," he added.

Miami-Dade County

In Miami-Dade County, single-family home sales increased 15% to 1,373 while the median sales price jumped 25.6% to $515,000. Cash deals soared 82%.

Sales of homes for $1 million and up increased 110%.

Active listings plummeted 33%, so the supply of inventory at the current sales pace was down to 2.2 months. That’s a seller’s market, with little inventory available for buyers.

Condo/townhouse sales in Miami-Dade more than doubled with a 103.7% increase to 2,259 while the median sales price soared 30.8% to $340,000. Cash deals were up 137%.

Sales of units of $1 million-plus increased 323%. Active listings fell 41%, so the supply of inventory at the current sales pace declined to 4.9 months. That’s a seller’s market. A year earlier, it was a buyer’s market.

Broward County

Single-family home sales in Broward County inched up 2.1% to 1,680 while the median sales price climbed 23.8% to $495,000, according to the Broward, Palm Beaches & St. Lucie Realtors.

Home sales for $1 million and up jumped 104%. Active listings were down 35%, so the supply of inventory at the current sales pace fell to 1.5 months. That’s a seller’s market.

Sales of Broward County condos/townhouses surged 51% to 1,999 while the median sales price increased 10.3% to $215,000.

Sales of units for $1 million-plus increased 61%. Active listings dropped 51%, so the supply of inventory at the current sales pace declined to 2.2 months. That’s a seller’s market.

“There is a silver lining for buyers,” said Karen Johnson, president of the Broward, Palm Beaches & St. Lucie Realtors. “The number of homes going under contract has dropped for the second consecutive month, a market indicator that Realtors are keeping an eye on.”

Palm Beach County

In Palm Beach County, single-family home sales fell 8.6% to 1,774 while the median sales price increased 25.3% to $500,000, according to the Broward, Palm Beaches & St. Lucie Realtors.

Sales of homes for $1 million or more were up only 13%, a slower pace than in recent months. Active listings were down 46%, so the supply of inventory at the current sales pace shrank to 1.5 months. That’s a seller’s market.

Condo/townhouse sales in Palm Beach County jumped 17.1% to 1,541 while the median sales price climbed 13.7% to $233,000. Sales were up 60% for units of $1 million or greater. Active listings plummeted 61%, so the supply of inventory at the current sales price was down to 1.5 months. That's a seller's market.

By Brian Bandell – Senior Reporter, South Florida Business Journal