S
outh Florida's housing market is experiencing a slowdown, with double-digit sales declines and inventory increases across the region. Condo sales in Miami Beach and barrier islands fell in the first quarter of this year, according to a report by Miller Samuel and Douglas Elliman. This trend aligns with a broader picture of South Florida as a market that's catching its breath due to rising insurance rates and property taxes.

    A major homebuilder in Florida warned investors that it would have to slash prices by over $30,000 to improve business in the poor-performing market. In Miami-Dade County, newly signed contracts for single-family homes and condos declined for the third consecutive month, despite an increase in new listings. However, Palm Beach saw a solid trajectory of sales, with luxury home sales dubbed a "Trump bump" in December.

    Simon Isaacs, CEO of Simon Isaacs Real Estate, notes that while Palm Beach has seen a healthy increase in buyers, some sellers' expectations still need to be tempered by the fact that there's more inventory to compete with. He characterizes South Florida as a normalizing market, rather than a troubled one, citing buyers' growing awareness of economic and insurance-related factors.

    Condo sales have been particularly affected, with the state's condo inventory at an all-time high due to new supply outpacing demand, rising insurance rates, and increased HOA fees. Luxury contracts and new listings priced over $1 million in Miami-Dade County and Broward County also trended down.