The South Florida real estate market recovered from the recession of 2008 with double digit price growth from 2011 until early 2015. Pricing became over-inflated, especially in the Miami marketplace as foreign buyers took advantage of the weak dollar and falling prices by investing in Miami real estate. This fueled a buying frenzy and unsustainable price appreciation. By mid 2015, the market started transitioning back to a more moderate pace. According to a recent report analyzing the first 6 months of 2016 from Miller Samuel Real Estate Appraisers and Consultants, the number of closed sales, including both condos and single-family homes, fell by 25% in Miami Beach and 12.5% in downtown Miami compared to the same period in 2015. During this same period, listing inventory grew in downtown Miami by 35% for condos and 38% for single family homes. In Miami Beach the listing inventory increased by 20% for condos and 8.3% for single-family homes.
While Miami struggled, Broward held steady and even saw some appreciation. According to a report from the Greater Fort Lauderdale Realtors Association ending June 2016, Broward experienced a 4.4% jump in closed sales year-over-year for condos and townhouses, and single-family homes saw a 4.8% rise in closed sales year-over-year. Housing prices also continued to increase in Broward. The median price for condos and townhouses spiked by 10.4% year-over-year and single-family home prices increased by 7.3%. The listing inventory for single-family homes actually fell by 10% year-over-year, while condos saw a slight uptick of 1.8%.
Broward sales have been spurred primarily by domestic buyers, whereas Miami has had a greater reliance on foreign buyers. The strong dollar and the weakness of many foreign currencies, have had a negative impact on foreign real estate investment, especially in the Miami area.