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The 11 bridges of the 97-year-old Venetian Causeway will be demolished and rebuilt at higher spans to resist storm surges and rising sea levels. Miami-Dade County will receive $101 million in federal funds for the project which is scheduled to begin in 2026. PHOTO:OIP
South Florida condominium sales drop significantly
Florida's once-booming condo market is experiencing a cooldown, with sales figures dipping dramatically. According to the latest data from the Miami Association of Realtors (MIAMI) and Realtor.com, condo sales in Miami-Dade and Broward counties have seen a significant decline compared to the previous year.
A Frigid Shift in Sales
Data from MIAMI reveals a substantial drop in condo sales for the second quarter of 2024. Compared to the same period in 2023, condo sales in Miami-Dade County fell by 22%, while Broward County witnessed a steeper decline of 28%. Realtor.com data corroborates this trend, showing a decrease in condo inventory movement across South Florida.
Factors Fueling the Freeze
Several factors are likely contributing to this market shift:
• Rising Interest Rates: The Federal Reserve's interest rate hikes are making mortgages more expensive, impacting affordability for potential buyers. This is particularly significant for condos, which often carry higher price tags compared to single-family homes.
• Insurance Crisis Bites: Florida's ongoing battle with skyrocketing property insurance premiums is another major concern. Coupled with increased reserve requirements for repairs and maintenance due to the Surfside condo collapse, condo ownership has become a more burdensome proposition.
• Changing Priorities: The rise of remote work might lead to a shift in buyer preferences. Single-family homes with dedicated workspaces and private yards could be gaining traction over condos that often lack these features.
Price Correction on the Horizon?
The impact on condo prices remains to be seen. While some softening might occur to entice buyers, South Florida's real estate market is known for its resilience. Data from Realtor.com suggests that median condo sale prices in Miami-Dade and Broward counties have remained relatively stable year-over-year. Location and amenities will likely continue to be key determinants of condo pricing.
The Road Ahead
The future of South Florida's condo market hinges on various factors, including the direction of interest rates, the state of the insurance industry, and broader economic conditions. The numbers indicate the market is no longer in a seller's frenzy. Buyers are being more cautious, so sellers must adjust their strategies to navigate the new reality.
South Florida housing market shows an increase in inventory
The recently released data from Redfin indicates a potential shift in the South Florida housing market. The report, which focuses on inventory levels, suggests a possible cooling down period due to the number of available properties across Miami-Dade, Broward and Palm Beach counties.
According to Redfin’s June 2024 data, the tri-county area experienced a notable rise in new listings compared to the previous year.
The June report indicates there were 198,465 homes for sale in Florida, up 40.1% year over year. There was also an increase of 4.3% of newly listed homes or 43,964. The average home price was $419,200.
Riviera Beach, Coral Gables and Lauderhill topped the list with the most sales, according to Redfin.
According to Redfin’s report, 11.2% of homes in Florida sold above list price, down 5.2 points year over year. There were 30.7% of homes with price drops and 96.9% sold at list price.
The increase in inventory will have a potential impact on buyer leverage. With more homes on the market, buyers in Miami-Dade, Broward, and Palm Beach counties may find themselves in a more favorable position.
The significant increase in listed properties across key counties suggests a shift towards a potentially more buyer-friendly environment.
Miami-Dade County programs can assist renters, condo owners
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Unbeknownst to many South Floridians facing home insecurity, the county expanded its Emergency Rental Assistance Program (ERAP) to include residents earning up to 140% of the area median income (AMI).
A single person earning less than $95,620, couples making less than $109,200, families of three earning less than $122,920, and families of four earning less than $136,500 can qualify for rental assistance. Visit miamidade.gov and search rental assistance for information, requirements and deadlines.
Funding assistance is also available to help condominium owners pay for special assessments than arise from the 40-year certifications. Owners, who are within the forementioned salary parameters and less than $50,000 in cash assets, can receive up to $50,000 in assistance to pay for assessments. Those with cash assets exceeding $50,000 are required to contribute a 10 percent deposit for the loan.
The interest-free, 40-year loan becomes payable if full when the property is sold or the owner/applicant dies unless the property’s heirs meet specific criteria. Information can be found on miamidade.gov by searching condominium owners’ assistance. The application deadline is December 23, 2023.
ERAP is a part of the mayor’s HOMES Plan approved in the 2022-23 annual county budget as part of an investment of $500 million to tackle the affordability crisis and ensure families can continue to live and work in Miami-Dade County.
“For Miami-Dade to thrive, our residents must be able to afford to live here,” said Mayor Levine Cava. “Our county’s distribution of ERAP funds was so successful, we were able to apply for and receive more funds from the federal government to expand the program and help more renters.”
The latest expansion will allow more residents to tap into funds to help them stay in their homes. That, in conjunction with the Building Blocks program and HOMES plan, will create a more affordable Miami-Dade for all, said the mayor.
The mayor made the expansion of ERAP benefits a key component of her HOMES plan included in the county’s approved budget by committing an additional $8 million in general funds from Miami-Dade County, county officials stated.
Miami-Dade has distributed more than $138 million to help keep more than 21,000 families in their homes since the start of the COVID-19 pandemic.
For more information on the program, visit: miamidade.gov and insert the desired information in the search line.
'Hometown heroes' eligible for down payment assistance
Many home buyers are opting for condominiums.
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The Florida Hometown Heroes Housing Program, launched by the state earlier this year,
was designed to assist Floridians in more than 50 “critical” professions in purchasing their first home.
The loan program will be available to Floridians in the fields of law enforcement, first responders, education, healthcare, childcare and active military and veterans and a host of other “critical professionals,” but electrologists, athletic trainers and massage therapists also made the cut. Barbers, cashiers and sanitation workers are not listed as frontline workers.
The program provides down payment and closing cost assistance to first-time, income-qualified buyers to purchase a primary residence in the community where they work and serve. The loan offers a lower first mortgage rate and additional special benefits to those who have served and continue to serve their country.
Eligible workers can receive lower than market rates on an FHA, VA, RD, Fannie Mae or Freddie Mac first mortgage, reduced upfront fees, no origination points or discount points and down payment and closing cost assistance.
Borrowers can receive up to five percent of the first mortgage loan amount, a maximum of $25,000, in down payment and closing cost assistance.
The program offers a down payment and closing cost assistance in the form of a zero down, non-amortizing, 30-year deferred second mortgage. The second mortgage becomes due and payable, in full, when the property is sold, refinanced, transferred by deed or when the home seizes being the applicant’s primary residence. The loan is not forgivable.
For additional information on the program, list of qualifying professions and its requirements visit: www.floridahousing.org/programs/homebuyer-overviewpage/hometown-heroes
Donate items you
don't have use for
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Your leather recliner doesn’t fit in your new abode and that little black dress has been hanging in the closet for years, tags and all. While those items have no place in your life, they may be just what someone else is looking for.
If you don’t want to deal with reselling sites or a garage sale, the answer is simple donate them to a worthwhile charity.
They accept drop offs of such items but can also pick up large items to sell at one of their thrift shops that serve a greater purpose.
The Salvation Army’s store, south of the design district, has a large room of furnishings donated by area residents, who’ve moved on or redecorated. There is also artwork, clothing and accessories. Proceeds from sales go to fund the many Salvation Army programs and shelters, one of which is steps away from the store in the shadows of high rises. To shop, donate or schedule a pickup, visit www.satruck.org
Other shops, like Out of the Closet, also serve an important purpose in the community. Their stores are not only filled with donations of trendy clothes, artwork and upscale furnishings,
proceeds from the sales help fund the Aids Healthcare Foundation and the on-site clinics which offer free HIV testing. Visit them at outofthecloset.org
Lotus House is the largest shelter of women and children in the country. They provide shelter, resources and supportive services to help families lead lives of greater opportunity. The
organization accepts, clothing, household goods and furnishings in good condition, then resells them online at their store, at 2040 NW 7th Ave., Miami. To schedule a pickup or shop online, visit lotusthrift.org.
Whether donating or buying, recycling clothing, furniture and other household items helps worthwhile causes and cuts downs on waste and pollution. It’s well worth considering on both ends.
The exterior of the Salvation Army Thrift store features several murals by artists from around the world. PHOTOS:OIP