Over the past several weeks, our team has come across numerous articles discussing the “collapse” of the Florida condo market, attributed to rising association fees necessitated by new regulations on building inspections and reserve funding. These requirements come in the wake of recent structural failures, underscoring the need for proactive measures to ensure the safety and well-being of residents.
As of mid-summer 2024, we have not observed a significant decline in values among our current listings. Since we were curious, our team decided to delve into the current data to uncover any trends.
Current Market Data – August 2024
Although a few listings on the market have experienced price reductions exceeding 20% from their original asking prices, the data does not currently indicate a widespread collapse.
Here is what we discovered in several markets within South Florida according to the BeachesMLS system:
West Palm Beach Condominiums
• Active Listings in the MLS: 919
• Median Price Change (Reduction): (6.9%)
• Average Price Change (Reduction): (8.31%)
Singer Island Condominiums
• Active Listings in the MLS: 89
• Median Price Change (Reduction): (8.01%)
• Average Price Change (Reduction): (8.96%)
Boca Raton Condominiums
• Active Listings in the MLS: 917
• Median Price Change (Reduction): (6.96%)
• Average Price Change (Reduction): (8.17%)
Miami Beach Condominiums
• Active Listings in the MLS: 1,695
• Median Price Change (Reduction): (5.64%)
• Average Price Change (Reduction): (6.1%)
Aventura Condominiums
• Active Listings in the MLS: 1,036
• Median Price Change (Reduction): (5.26%)
• Average Price Change (Reduction): (5.81%)
Fort Lauderdale Condominiums
• Active Listings in the MLS: 1,301
• Median Price Change (Reduction): (5.8%)
• Average Price Change (Reduction): (7.12%)
Pompano Beach Condominiums
• Active Listings in the MLS: 786
• Median Price Change (Reduction): (6.32%)
• Average Price Change (Reduction): (6.15%)
Although the South Florida condominium market has undeniably shifted and the effects of these new requirements are noticeable, at this time there is little evidence of any structural issues at the local level. This observation should provide a sense of reassurance to both current residents and potential buyers who may be concerned about the stability and integrity of their investments.
The recent changes, while impactful, appear to be more about adapting to new regulations and market dynamics rather than addressing any fundamental flaws within the system. As the market continues to evolve, participants can remain cautiously optimistic that these adjustments will ultimately contribute to a more robust and resilient real estate environment. Therefore, keeping an eye on future developments while maintaining confidence in the current market’s foundation seems to be the prudent approach for all involved.
Do you have a property to sell?
If you have a property that you need to sell, now is the time to call Quantum Realty Advisors, Inc. for a free, 30-minute consultation to discuss your immediate needs and how we can help to address them.
On behalf of our clients and strategic partners, we have successfully sell over hundreds of residential and commercial properties in most major markets nationwide.
Our team has an extensive network of highly experienced partner brokers who can assist with all the local requirements, and we will personally be there for you every step of the way.
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