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Sale prices for existing homes and condos in South Florida real estate market rose in the second quarter of this year. But the amount of increase is not as much as sellers had been hoping for. Nevertheless as compared to the previous year, the cumulative sales of South Florida real estate plunged according to statistics from the Florida Association of Realtors. Housing analysts are positive about the strength of the South Florida real estate market; however, the current trend seems to suggest that the South Florida real estate market is experiencing a fall off

Notwithstanding the concerted diminishing of home sales rate, median prices continue to gain upward momentum. In Broward, median home prices are up by 2% compared to the same period of the previous year. In Miami-Dade, the jump is even more spectacular as the median price raised by 8%. Only Palm Beach County experience a slight appreciation as its median sales price only increased by 1% in comparison with last year’s numbers.

South Florida real estate condo prices also slightly amplified increased slightly by the second quarter of this year. Broward’s median sale price for condos increased by a considerable 10%; Palm Beach County’s by 8%; and Miami-Dade’s by 3%.

Overall, these sales price increases for both homes and condos in South Florida real estate were actually much smaller it was in prior quarters for which the year-over-year prices regularly gained 30% or more. The current picture of the South Florida real estate market significantly contrasts the conditions two years ago for which the housing market experienced rapid growth, registering a record year in terms of closings and median price for sales of existing single-family homes. By year’s end, Florida came close to reaching the 250,000 mark for annual sales, according to the Florida Association of Realtors(R) (FAR), with a total of 242,234 homes sold — an 11 percent increase over the 218,739 homes sold the year before.

Sales are slowing because of accumulating inventory of unsold properties on the market. The rapid price boom in combination with rising insurance premiums and property taxes during the past five years has restrained many prospective clients from buying South Florida real estate properties. The drop in demand incurred by these preventive circumstances are making some sellers getting desperate, thereby resorting to selling at much reduced asking prices and even offering attention-catching deals to buyers and their agents.

These trends are consistent with what is observed not only in the entire Florida state but also nationwide. For the entire Florida state, home sales fell 27 percent in the second quarter, while the median price increased 9%to $254,800. Sales were down in every metropolitan area in Florida. Condo sales fell 33%, and the median price rose 1% to $217,900. Nationwide, home sales fell 7% in the second quarter of this year.