Miami Home Sales Down in 2023 Due to High Interest Rates

Home sales in Miami (specifically, Miami-Dade County) registered a 23.6% decrease in 2023 compared to 2022, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system, despite a slight uptick in December, especially in the Single-Family Homes in Miami, which grew by 1.3% compared to the same month in 2022.

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Analysts say that this is a consequence of the high interest rates that have prevailed since previous years (there were eleven consecutive increases), a measure that was decreed by the economic authorities to control inflation. This affected the purchasing power for buying and selling properties in Miami, although the good news for investors, in addition to the decision taken by the US Federal Reserve to keep this indicator in the range of 5.25% to 5.5%, is that it is estimated that in 2024 There will be a reduction of this factor.

How did home sales in Miami perform in 2023?

In total, 24,154 housing units were sold in Miami in 2023, up from 31,627 in 2022. This is a decrease of 23.6%.

In the case of single-family homes, 10,541 units were traded the previous year, compared to 12,250 in 2022 (a reduction of 14%). As for townhouses and condominiums, sales went from 19,377 in 2022 to 13,613 in 2023.

One of the indicators that showed a positive balance in the report of the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system was the average sale price per home, which in both segments had significant increases. In single-family homes it was 9.1% (from USD 500,000 in 2022 to USD 600,000 in 2023) and in townhouses and condominiums it was 5.5% (from USD 388,659 in 2022 to USD 410,000 in 2023).

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On the other hand, housing inventories in Miami, i.e. units listed as active for sale, grew in the townhouses and condominiums segment (15.4%), but not in the single-family homes segment (a decrease of 7.1%).

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