Outshining the nation
Gay Cororaton, Chief Economist Senior Economist and the Director of Housing & Commercial Research with the Research Group of the National Association of REALTORS®, provides us with insight.
In May 2023, housing prices in South Florida's Miami-Dade, Broward, Palm Beach, and Martin counties remained higher than the national average. This can be attributed to strong job growth and a continuous influx of people moving to the area.
Steady price appreciation since 2011
Home prices in Miami-Dade County continue to remain robust and surpass the national average. Despite the challenges posed by the pandemic and the significant increase in mortgage rates compared to last year, the median price of single-family homes has consistently increased on a year-over-year basis for more than 11 years, starting from December 2011. In the current market, the median price of single-family homes rose by 7.8% to reach $620,000, while condo and townhome prices remained steady at $415,000 compared to the previous year. In contrast, nationwide, single-family home prices experienced a decline of 3.4%, whereas condo and townhome prices remained relatively unchanged. As reported by Reuters, national median price for the country in May was $416,300.
Although there has been an increase in inventory, Miami's single-family home market is still considered a seller's market with a 3.3-month supply of homes. The total number of active single-family homes and condos/townhomes is 20% higher than the previous year, but still significantly lower (59%) than May 2019.
Explosive population & job growth
Although employment rates in the United States have only seen a modest 2% increase, Miami-Dade has managed to maintain stable prices. This can be attributed to the impressive job growth in the area and consistent migration. According to data from April 2023, the county experienced a significant 3.2% year-over-year increase in total employment (not seasonally adjusted).
Data from the Florida Department of Highway Safety and Motor Vehicles reveals that during the first quarter of 2023, there were 19,231 driver license exchanges from out-of-state and out-of-country in Miami-Dade. This marks a substantial rise from the 13,267 exchanges recorded in the first quarter of 2022.