Nearly half of all Miami-Dade condominium purchases and more than half of Broward condo sales were all-cash transactions, according to the Miami Association of Realtors.
Carl Juste
cjuste@miamiherald.com
Luxury homebuyers paying cash are increasingly driving South Florida’s housing market, helping push home prices higher across the board.
Sales of $1 million-plus homes jumped 29% in Miami-Dade and 35% in Broward in June compared with a year earlier as affluent buyers continued relocating from higher-tax states like New York and California and a steady flow of foreign investors continued, according to data released by the Miami Association of Realtors.
Cash purchases surge
Amazingly, nearly 38% of all Miami-Dade home purchases and 37% of Broward transactions were completed without financing — well above the national average of roughly 25% for such purchases. Nearly half of all Miami-Dade condominium purchases and more than half of Broward condo sales were all-cash transactions.
The luxury surge helped fuel a broader rebound across the region for single-family homes and condos, according to the association, a leading online real estate marketplace that tracks housing trends.
Despite mortgage rates remaining in the 6.5% range, the latest figures suggest South Florida’s housing market continues to outperform many parts of the country.
Miami-Dade recorded its strongest June in three years, while Broward extended its streak of year-over-year sales gains to four consecutive months.
“While sales broadly rose across price tiers, the million-dollar segment continued to outperform,” Miami Realtors Chief Economist Gay Cororaton said. “It’s a clear indication of the acceleration in wealth migration to South Florida.”
The broader market also gained momentum.
The numbers suggest buyers are adjusting to higher borrowing costs even as affordability challenges persist in South Florida, the Miami Realtors report added.
In Miami-Dade, total home sales climbed 14.3% from a year earlier, marking the county’s 10th consecutive month of year-over-year sales growth.
Single-family home sales jumped 16.8%, while condominium sales increased nearly 12%, though they are still slumping.
Broward posted an even stronger performance.
Total home sales rose 21.1%, fueled by a 26% increase in single-family sales and a 15.5% gain in condominium purchases.
Median prices also continued climbing for single-family homes, the report said.
In Miami-Dade, the median single-family home sold for $695,000 in June, up 3.7% from a year ago. Broward’s median reached $645,000, a 2.4% increase.
Condo market softens
Condominium prices slightly decreased as inventory remains elevated following new state condominium safety requirements in the wake of the Surfside condo collapse. Miami-Dade’s median condo price slipped 3.2% to $431,000, while Broward’s fell 1.8% to $265,000.
Even so, condo values remain dramatically higher than they were a decade ago. Since 2011, Miami-Dade condo prices have risen 278%, while Broward condo values have climbed 258% since 2010.
Inventory also continued tightening. Active listings declined nearly 15% in Miami-Dade and almost 20% in Broward compared with last June, the fifth consecutive monthly inventory decline in Miami-Dade.
Real estate leaders said international demand, continued domestic migration and South Florida’s relative value compared with other global cities continue attracting buyers.
For $1 million, homebuyers in Miami can expect to get about 624-square-feet of living space, higher than other cities. The region’s housing market also continues generating a significant economic impact, the association said.
Home sales in June produced an estimated $271 million in local economic activity in Miami-Dade and $302 million in Broward, according to National Association of Realtors estimates used by the Miami association.
