Broward County Luxury Real Estate Market Continues to Thrive
By Brosda and Bentley Realtors
The Broward County’s real estate market has witnessed a substantial increase in total $1 million-and-up home sales, marking a notable 17% year-over-year growth, according to November 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system. This surge in luxury real estate transactions highlights the resilience of the local market amid broader economic changes.
Market Dynamics: Despite the challenges posed by a recent surge in mortgage rates, Broward County’s luxury real estate market remains robust. MIAMI REALTORS® Chief Economist Gay Cororaton anticipates a positive shift, forecasting mortgage rates to fall to 5.25% by the end of 2024. This prediction is based on the cumulative rate cut of 0.75% planned by the Federal Reserve and the anticipated cooling of inflation. Notably, mortgage rates hit a 23-year high of 7.8% in October 2023, impacting national sales numbers in November of the same year.
Inventory Challenges: Broward County faces a significant inventory challenge, with a 57.6% decrease from the historical average. The existing inventory for single-family homes is at 3,627, down 5.1% year-over-year, while condominium inventory increased by 49.6%. The months’ supply of inventory for both property types indicates a seller’s market, with 3.5 months for single-family homes and 5.1 months for existing condominiums.
Median Price Growth: The Broward County luxury real estate market has experienced substantial median price growth. Single-family home median prices increased by 11.1% year-over-year in November 2023, reaching $600,000, while existing condo median prices saw a 9.8% year-over-year increase, reaching $280,000.
Economic Impact: The economic impact of Broward County’s real estate market is noteworthy. With a total of 1,830 homes sold in November 2023, the local economic impact reached an impressive $223 million. This impact is derived from various factors, including income generated from real estate industries, expenditures related to home purchases, housing-related expenditures, and new construction.
Dollar Volume and Distressed Sales: Broward County’s real estate market achieved a total dollar volume of $1 billion in November 2023, with single-family home dollar volume increasing by 7.43% and condo dollar volume increasing by 10.5% year-over-year. Distressed sales remain low, constituting only 0.8% of all closed residential sales in Broward in November 2023.
Market Efficiency and Cash Sales: Broward County’s real estate market exhibits efficiency, with the median number of days between listing and contract dates decreasing for both single-family homes and condos. Cash sales continue to play a significant role, representing 41.7% of Broward closed sales in November 2023. This high percentage is reflective of South Florida’s status as a prime real estate market for foreign buyers and individuals moving from more expensive U.S. markets.
Broward County’s luxury real estate market remains vibrant and resilient, showcasing growth in the face of economic changes. With a surge in sales, increased median prices, and a strong economic impact, the market continues to attract both local and international buyers. As mortgage rates are expected to stabilize, the future looks promising for Broward County’s real estate sector.
If you’re looking for a real estate agent in Miami, I encourage you to contact Brosda & Bentley Realtors. We’re here to help you find your dream home and make your life in Miami an unforgettable experience.
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