Despite a decline in median sales price throughout the US in February, the median sales price of single-family homes in the South Florida market, including Miami-Dade and Broward counties, has increased compared to last year. According to the Miami Association of Realtors housing report, the median home price in Miami-Dade County rose to $555,000. Broward County saw increases in home prices up to $560,000. In comparison, the latest report from the National Association of Realtors reveals a drop in median sales prices for houses in the US to $367,500 in February. The South Florida housing market remains surprisingly resilient despite the US housing market’s downturn. Companies have relocated their employees which continues to fuel the high demand for living in South Florida. Additionally, South Florida investments continue to be attractive to international buyers who compare the U.S. economy to the comparatively worse economy in their own country.
However, a tight supply of homes for sale has resulted in a 40% decrease in sales activity in Miami-Dade and a 32% drop in sales in Broward. Furthermore, people are being priced out of the region’s housing market, with the median prices making it unaffordable for many. With interest rates rising and the possibility of a banking crisis, the South Florida housing market’s momentum could slow down in the coming months. The Federal Reserve’s decision on interest rates this week is affected by the failure of Silicon Valley Bank, which recently opened a branch on Brickell in 2021. Construction has already slowed, and further banking problems may trigger an uproar that could reduce South Florida’s real estate market activity.