South Florida home sales plunge in May, as prices continue rising

Rising mortgage rates and growing inventory contributing to slowdown

South Florida homes

South Florida isn’t immune to rising interest rates and growing inventory.

Residential sales fell across South Florida in May for the second consecutive month, as mortgage rates have roughly doubled in a year. Sellers, meanwhile, are rushing to list their properties, trying to take advantage of the hot market before it disappears.

Still, median prices continued to skyrocket in Miami-Dade, Broward and Palm Beach counties last month, according to reports from the Miami Association of Realtors.

“It would be naive to think that the interest rate doubles and it doesn’t have an impact on buying,” said Mike Pappas, CEO of the Keyes Company. “There will be a pause, and the buyers are going to say, ‘Well, are prices coming down or not?’”

Miami-Dade County

Total home sales fell nearly 10 percent in Miami-Dade County, to 3,198 closings in May. Condo sales decreased nearly 9 percent to 2,005 closings, while single-family home sales declined 12.3 percent to 1,193 sales, compared with May 2021.

The median price of single-family homes rose 15 percent, year-over-year, to $575,000. It jumped 28 percent to $415,000 for condos.

The total dollar volume of closed sales last month topped $2.8 billion, falling 8.3 percent to $1.3 billion for single-family homes and increasing 3 percent to $1.5 billion for condos.

Broward County

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Residential sales decreased 13 percent to 3,222 closings in Broward County last month. Condo sales fell 13.5 percent to 2,701 sales; and single-family home sales declined 12.4 percent to 1,431 closings.

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The median price of single-family homes climbed 26.4 percent, year-over-year, to $586,000. For condos, it jumped 20.7 percent to $253,500.

Total dollar volume in Broward rose to nearly $1.9 billion in May, thanks to a 10 percent increase in dollar volume of single-family homes, to $1.2 billion, and an 11 percent jump in condo dollar volume, to $680.5 million.

Palm Beach County

Last month, residential sales fell nearly 22 percent in Palm Beach County, to 2,956 closings. Condo sales decreased 24.3 percent to 1,429 sales; and single-family home sales dropped 19.2 percent to 1,527 closings.

The median price of single-family homes ballooned to $615,000, up 29.5 percent compared to May of last year. For condos, the median price climbed 23 percent to $307,500.

Closed dollar volume totaled about $2.3 billion. Single-family dollar volume accounted for $1.5 billion, marking a nearly 18 percent annual decline. Condo dollar volume decreased 18 percent to $746 million.