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Miami Herald
5 days ago
- Business
- Miami Herald
Miami-Dade's sagging condo market could be ‘next great crisis' as values drop
As real estate demand softens, Miami-Dade condominiums are showing the weakest numbers, according to new data from the county Property Appraiser's Office. Real estate values on existing homes and commercial property grew about 7% countywide at the start of 2025, according to the June 1 report on taxable values across Miami-Dade. But when isolated only to existing condominiums, values dropped slightly from the start of 2024 — a decline of less than 1%, according to Property Appraiser Tomás Regalado. 'The condos are the next great crisis, because of a perfect storm,' Regalado said at a Monday press conference where he discussed the annual report from his office. The first-term Republican said that recent state mandates on condo maintenance, more stringent certification rules and higher insurance costs are weighing on the condominium market and driving down demand from buyers. Regalado's figures come from months of analysis by his office's staff to determine the worth of more than 900,000 properties across Miami-Dade and also how that value should be reflected on yearly property-tax bills. The figures released from Regalado's office capture taxable value, which is a property's market value minus deductions and exemptions mandated by state law. Released on Friday, the report showed an 8.5% increase in overall values across Miami-Dade. That includes existing structures and new construction in 2024. That's down from 10.7% growth last year and is the first single-digit gain since 2021, when the start of the COVID pandemic disrupted real estate sales. 'In a nutshell, the real estate market — after years of sometimes wild growth — appears to have stabilized,' Regalado said at the press conference. His office didn't have detailed value statistics for condos in the county's 34 municipalities. But Regalado said some of the worst-performing condo markets were in Miami Shores, where values were down 6.6%, and in Coral Gables, with a 5% drop in condo values. Also on the declining list: Aventura and North Bay Village, both down 4%; North Miami, down 3.4%; and South Miami, down 1.9%. On the other side of the spectrum are markets where condo values continue to grow. West Miami, a tiny housing market with only 83 condominiums at the start of 2024, saw taxable values for condominiums spike 18% at the start of 2025. Condo values grew 12% in Opa-locka and 4% in Hialeah Gardens, according to figures Regalado shared. The value declines are an average of each market, and only cover existing condos at the start of 2024. Condo units built last year are not part of the analysis, Regalado said. Regalado's discouraging news for condo sellers — and encouraging figures for would-be buyers — reflect other signs of softness for the real estate market overall. Miami and Tampa were the only metro areas to show slight home value declines in the last 20-city nationwide report from the S&P CoreLogic Case-Shiller Index, which tracks prices of single-family houses. Sales of condos and townhomes were down 21% in April in Miami-Dade, according to the latest report from the Miami Association of Realtors. The median sales price of $445,000 was barely changed from a year ago — up just $1,000. Sales of single-family homes were down 11%, and prices were up 4%, to $680,000.
Yahoo
28-01-2025
- Business
- Yahoo
Home Price Growth Accelerated in November Following Autumn Dip in Mortgage Rates
Annual home price growth accelerated in November for the first time in seven months, showing that prices remain responsive to mortgage rates, which dipped briefly last fall. Nationwide, home prices grew 3.8% in November from a year earlier, more than the 3.6% gain seen in October, according to the latest S&P CoreLogic Case-Shiller Index data released on Tuesday. The index's composite of the 20 largest metro areas posted a year-over-year increase of 4.3%, up from a 4.2% increase the previous month. New York City again reported the highest annual gain among the 20 cities, with a 7.3% increase in November, while Tampa, FL, recorded the lowest return, falling 0.4%. The modest bump in home price growth followed mortgage relief in September, when average rates briefly dipped to two-year lows close to 6%. Rates have since increased to around 7%. The stronger growth in November sales prices, which includes September and October on a three-month rolling basis, suggests that the market remains fairly responsive to changes in mortgage rates. Still, the annual price growth seen in the latest Case-Shiller data remains weaker than pre-pandemic norms, and far below the feverish 20% gains reached during the buying frenzy of 2022. 'With the exception of pockets of above-trend performance, national home prices are trending belowhistorical averages,' says , head of commodities, real and digital assets at S&P Dow Jones Indices. 'Markets in New York City, Washington, DC, and Chicago are well above norms, with New York leading the way,' he adds. 'However, markets out West and in once red-hot Florida are trending well below average growth. Tampa's decline is the first annual drop for any market in over a year.' Although the Case-Shiller index is reported with significant lag time, it is one of the most accurate measures of home values in the U.S., using repeat transactions to measure price changes while stripping out appreciation due solely to improvements or higher square footage. While Tampa was the only city tracked by the index that saw an annual price decline, price growth in other markets in the South and West remained sluggish. Dallas, Denver, Phoenix, and San Francisco all saw home prices grow less than 2% year over year in November. Meanwhile, New York City, Chicago, and Washington, DC, saw the biggest annual price gains, with home values in those markets growing 7.3%, 6.2%, and 5.9% respectively. 'Regional variation in the housing market means that buyers across the country face vastly different market conditions,' says senior economic research analyst Hannah Jones. 'Markets in the Midwest and Northeast continued to see substantial demand, resulting in sustained price growth in November, while the South and West continued to soften.' Returns for the Tampa market and the entire Southern region ranked in the bottom quartile of historical annual gains in data going back to 1988, according to Luke. 'Unsurprisingly, the Northeast was the fastest-growing region, averaging a 6.1% annual gain,' he says. On a monthly basis, home prices fell slightly in Seattle and Tampa from October to November, after accounting for seasonal adjustments. Prices rose on a monthly basis in the other 18 markets tracked by the index, led by Boston, where they increased 0.94%. Live Out Your Own 'Traitors' Reality: 5 Magnificent Estates That Rival the Stately Scottish Castle Where TV Drama Unfolds Futuristic $21 Million Concrete Beach Fortress Designed To Withstand the Elements Becomes the Week's Most Popular Home America's 'Most Expensive New Construction Home' Hits the Market in Florida for a Staggering $285 Million
