S
outh Florida's housing market is stuck in a state of rebalancing, with dismal home sales persisting despite efforts to correct the course. According to data from the Miami Association of Realtors, the dollar volume of sales across Miami-Dade, Broward, and Palm Beach counties dropped to $5.6 billion in May, down from $6.1 billion last year.

    Luxury buyers are bucking the trend, but the average buyer is struggling with high mortgage rates and insurance costs. The condo market is particularly hard hit, with sales plummeting 25% compared to last year. Broward County saw an 18% drop in sales, while Palm Beach County's sales declined by 12%.

    The aftermath of the 2021 Surfside condominium collapse continues to impact the market, making it harder for older condos to sell. However, new legislation signed by Governor Ron DeSantis aims to ease the burden on condo homeowner associations.

    Despite a tight supply of affordable homes under $400,000, median prices in Miami-Dade rose year-over-year from $650,000 to $675,000. The single-family market was a rare bright spot, with 4% price growth, but sales still declined. Market insiders characterize the downturn as a normalization rather than a reckoning.

    In Palm Beach County, sellers and buyers are finding more balance in the market, with prices remaining elevated but sales closer to pre-pandemic levels. Brokers like Johnny DelPrete at Douglas Elliman say that managing expectations is key, as buyers and sellers adjust to the current market conditions.