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THE STRENGTH OF THE MARKET IN BROWARD COUNTY

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.

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