WRE News: South Florida Condo Sales Plunge Amidst Rising Costs

Recent data reveals a significant downturn in condo sales across Miami-Dade and Broward counties, with transactions plummeting by double digits in June. The decline coincides with escalating homeowners association fees, driven by new legal mandates following the Surfside condo collapse, which claimed 98 lives in 2021.

In Miami-Dade, condo sales dropped by 26.8% year-over-year, marking a stark contrast from previous years. Broward County experienced a similar downturn, with sales declining by 31.7%. Experts attribute the slump to stagnant interest rates and soaring insurance premiums, defying earlier expectations of a market rebound fueled by lower borrowing costs.

The repercussions are widespread, affecting condos across all price ranges. Prospective buyers, already wary due to high maintenance fees and uncertain equity gains, are increasingly hesitant to invest. Legislative changes mandating condo associations to bolster reserves and conduct structural integrity studies by 2025 further complicate the landscape. As inventory swells and costs escalate, analysts predict a challenging road ahead for sellers, potentially altering market dynamics for years to come.