South Florida's Housing Market Defies Conventional Wisdom as Prices Soar Amidst Sales Decline

South Florida's real estate market has been making headlines as home prices continue to rise despite a dip in sales. The Miami Association of Realtors recently released a home sales report comparing October 2023 to the same period in 2022. Surprisingly, while existing home sales were down, new contracts and listings saw an upward trend. This paradoxical situation prompts a closer examination of the factors contributing to this unique scenario. Sales and Contracts: In October, existing home sales in Florida experienced a year-over-year decrease, according to Florida Realtors. However, new contracts and listings were on the rise. The housing market seems to be in a holding pattern, with experts suggesting that a true shift will depend on a substantial downward move in interest rates. The contradiction is evident in the 8.4% increase in new pending sales of single-family homes, even as the typical 30-year fixed mortgage rate climbed to about 8%. Townhouses and Condos: While clo...