Miami-Dade County's housing market is finally cooling as listings surge and prices dip.
The county had more than 22,200 single-family homes, townhouses and condos listed for sale in July, an increase of 40.1% from the same period a year ago, according to Homes.com data. Only Raleigh, North Carolina, at 54.5%, and Las Vegas, at 43.1%, had higher percentage jumps among the nation's 40 largest markets.
Miami-Dade's listings count has doubled since July 2023, with condos accounting for much of the increase, the Homes.com data shows. About 55% of the active listings were condos, as some owners in older buildings look to leave their properties, fearing that a new safety law could price them out of their units.
Not coincidentally, the median price for all properties fell 1.2% to $550,000 in July, the fourth-worst showing among the top 40.
Still, the market softness appears to be a correction rather than a sign of a collapse, analysts say.
Even with the price dip, Miami-Dade’s median price for homes is 75% higher than it was in July 2019, making it one of the top U.S. markets for price growth over that period, according to the Homes.com report.
Southern markets struggling
What’s more, Miami isn’t the only soft market across the South. Higher numbers of listings are also dragging down prices in Tampa, Florida, and Atlanta. In Texas, San Antonio led the U.S. with a 5% price drop, and prices were lower in Austin and Houston, too.
"While one month of declining sale prices does not make a trend, we’ll be watching the interplay between increased listings and sale prices closely as Miami has long been a leader in the U.S. for price appreciation," said Michelle Rumore, senior director of analytics at Homes.com.
Miami-Dade listings have eclipsed 20,000 for five consecutive months, and the number of listings has steadily risen each month since March. That puts buyers firmly in control and forces sellers to sharpen curb appeal and price their homes realistically, said Joe Azar, an agent for Douglas Elliman in Miami.
"Buyers aren't going to overpay for an old property you have to go in and rehab," he told Homes.com. "If it's priced accurately, it will go under contract."
Florida's revised condominium safety law already is having a major effect in Miami-Dade, the state's most populous county at 2.8 million residents, industry observers say.
The law, enacted in response to the 2021 collapse of the 12-story Champlain Towers South in Surfside, Florida, requires associations in older buildings to complete inspections and finance reserves for repairs. Analysts say it could alter sales volumes and prices for thousands of units in Miami-Dade alone.
Some owners who can't afford their share of potentially onerous repair costs are putting their units up for sale, contributing to the large number of listings. However, buyers will likely remain cautious, according to Peter Zalewski, founder of the Miami Condo Investment Club. The only way to entice buyers will be to slash prices, he has said.
While the condo sector is temporarily skewing the overall market in Miami-Dade, the area will remain a draw for the temperate weather and lack of a state income tax, among other perks, Azar said.
"Over time," he said, "you will continue to see Miami grow."
