The Real Deal Miami

South Florida resi closing prices still 28% below peak: report

Price growth has slowed in recent months
April 20, 2016 03:45PM

Fort Lauderdale's skyline (Credit: Kolossos)

Fort Lauderdale’s skyline (Credit: Kolossos)

Despite several years of double-digit price growth, a new report shows South Florida homes are still selling at median prices far lower than the region’s peak in 2007.

The report, authored by real estate research firm RealtyTrac, states homes traded for a median of $210,000 per property in the first quarter of 2016. That number has grown by 9 percent since the first quarter of 2015, but it’s still 28 percent from the June 2007 peak of $292,000 per home.

Real estate values in South Florida — Miami in particular — boomed once the crash ended, at times by double-digit percentages year-over-year. As the market matured, however, price appreciation began to slow, especially in recent months when growth has started to dip below 8 and 9 percent.

That trend will likely continue as sales of existing properties in South Florida’s major markets also slow alongside inventory buildups, as broken down in the recent Elliman reports.

Industry insiders have said slowing prices and sales are signs of a maturing market that’s stabilizing.

Meanwhile, South Florida’s number of cash deals continues to fall. The RealtyTrac report shows home sales without financing hit just under 54 percent in the first quarter, down 11 percent year-over-year and 2 percent from the fourth quarter of 2015.

Distressed sales are also down significantly. Of all South Florida’s home sales in the first quarter, 25 percent where either lender-owned or distressed, a reduction of 18 percent year-over-year. — Sean Stewart-Muniz