22 June 2012

The South Florida Housing Market in May

May is like April, just more of the same? Looks like it, but that's not quite all.

While inventory keeps shrinking – all single family houses as well as modern homes – median selling prices are rising, and not so slow anymore. Year-over-year, median selling prices, overall and per square foot under air, the Tri-County area is now back at a typical pre-boom/pre-bust six percent:

South Florida Single Family Home Sales May 2012. Source: SEFMLS

In y-o-y increases, Broward is the winner with a hefty 13 percent jump in median selling prices, while Palm Beach actually lost two percent points (asking prices are pretty irrelevant – any fool can ask whatever he wants, what counts is what the market is willing to pay).

South Florida Single Family Home Sales May 2011-May 2012. Source: SEFMLS

As the Miami Herald reported earlier this week, sellers – crying after the boom market? – are still reluctant to sell if they don't have to. Tight inventory results for all home types and especially modern homes, with some properties going at or even above asking price, especially in prime locations.

Sellers trying to push the price limits however can expect their listings to sit and wither. Some Realtors share the blame: accepting any overpriced listing just to bolster their portfolio does not help matters.

On top of that, bankers haven't gotten the message: mortgages remain a challenge at every price level, making cash buyers the stars of the market.

Summary of the Miami Herald: bring your checkbook.

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