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

Miami /
Apr.April 20, 2016 03:45 PM

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


Related Articles

arrow_forward_ios
Ron DeSantis and Peter Thiel (Illustration by The Real Deal with Getty)
Peter Thiel on Florida real estate: “becoming like California”
Peter Thiel on Florida real estate: “becoming like California”
Affiliated Development co-founder Nick Rojo along with 9445 Fontainebleau Boulevard in Miami (left) and the Bohemian apartment project in Lake Worth Beach (right) (Getty Images, Affiliated Development, Google Maps, MSA Architects)
“Slamming on the brakes”: South Florida’s record rent hikes slow
“Slamming on the brakes”: South Florida’s record rent hikes slow
Clockwise from top left: One Sotheby’s Jorge Uribe, Compass' Ida Schwartz, Fortune International Group's Edgardo Defortuna and Royal Palm Companies' Dan Kodsi (Illustration by Kevin Rebong for The Real Deal)
Slowdown hits South Florida’s hot resi market: Here’s what that means
Slowdown hits South Florida’s hot resi market: Here’s what that means
(Illustration by The Real Deal with Getty Images)
South Florida’s June resi sales drop by double digits
South Florida’s June resi sales drop by double digits
(iStock/Illustration by The Real Deal)
Miami again ranks as nation’s least affordable housing market, followed by LA, NY
Miami again ranks as nation’s least affordable housing market, followed by LA, NY
US HUD Secretary Marcia Fudge (Getty, iStock)
A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
Residential sales fall in Southern Florida
Residential sales fall in April across South Florida
Residential sales fall in April across South Florida
10061 Southwest 60th Court in Pinecrest with Dr. Robert DerHagopian (Google Maps, Miami Cancer Institute)
Miami breast cancer surgeon Robert DerHagopian sells Pinecrest house for $6M
Miami breast cancer surgeon Robert DerHagopian sells Pinecrest house for $6M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...