Mid-market Miami home sales and median prices for all properties rose in November, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
Mid-market home transactions — properties sold for $250,000 to $600,000 — jumped 16.4 percent for Miami existing condominiums and 4.9 percent for single-family homes in November. Mid-market home sales comprise 61 percent of total single-family home sales and 33 percent of total condo sales.
“Low inventory and high demand is fueling a surge in Miami home sales in the $250,000 to $600,000 range,” said Christopher Zoller, the 2017 MIAMI chairman of the board. “America’s youngest major city, Miami is home to a growing population and rising wages; two factors consistent with real estate growth.”
Total Miami Home Sales Decrease in November
- Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — decreased 4.3 percent year-over-year from 1,997 to 1,912.
- Single-family home sales decreased 7.6 percent, from 1,025 to 947. Miami existing condo sales — which are competing with one of the most robust new construction markets in the country — decreased 0.7 percent year-over-year, from 972 to 965.
- Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
- Total sales volume for all properties accounted for $793.6 million last month. These sales do not include Miami’s multi-billion dollar new construction condo market.
Six Years of Price Appreciation in Miami
- Miami-Dade County single-family home prices increased 6.5 percent in November 2017, increasing from $310,000 to $330,000. Miami single-family home prices have risen for 72 consecutive months, a streak spanning six years. Existing condo prices rose 5.9 percent, from $217,250 to $230,000 in November. Condo prices have increased in 75 of the last 78 months.
- Miami real estate remains a bargain. A 120-square meter condominium in Miami-Fort Lauderdale-Miami Beach cost $170,000 in 2016 Q3, according to the National Association of REALTORS® (NAR). The average cost of a 120-square meter apartment in 2016 in the prime inner city areas of London ($4.1 million), Hong Kong ($3.1 million), and New York ($2.2 million) were at least ten times higher, according to Global Property Guide.
- According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the second straight month to 3.92 percent in November from 3.90 percent in October. The average commitment rate for all of 2016 was 3.65 percent.
Miami Distressed Sales Continue to Drop
- Only 9.4 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 14.8 percent in November 2016. In 2009, distressed sales comprised 70 percent of Miami sales.
- Total Miami distressed sales declined 38.9 percent year-over-year, from 296 to 181 last month.
- Short sales and REOs accounted for 2.6 and 6.9 percent, respectively, of total Miami sales in November 2017. Short sale transactions dropped 35.5 percent year-over-year while REOs fell 40 percent.
- Nationally, distressed sales accounted for 4 percent of sales, down from 6 percent a year ago.
Miami Real Estate Selling Close to List Price
- The median number of days between listing and contract dates for Miami single-family home sales was 55 days, a 10 percent increase from 50 days last year. The median number of days between the listing date and closing date for single-family properties was 108 days, a 0.9 percent increase from 107 days.
- The median time to contract for condos rose 14.1 percent to 81 days from 71 days. The median number of days between listing date and closing date increased 2.5 percent to 122 days.
- The median percent of original list price received for single-family homes was 95.4 percent. The median percent of original list price received for existing condominiums was 93.5 percent.
National and State Statistics
- Nationally, total existing-home sales jumped 5.6 percent to a seasonally adjusted annual rate of 5.81 million in November from an upwardly revised 5.50 million in October. After last month’s increase, sales are 3.8 percent higher than a year ago and are at their strongest pace since December 2006 (6.42 million).
- Statewide closed sales of existing single-family homes totaled 19,990 last month, up 1.3 percent compared to November 2016, according to Florida Realtors. Statewide closed condo sales totaled 8,235 last month, up 5.8 percent compared to November 2016.
- The national median existing-home price for all housing types in November was $248,000, up 5.8 percent from November 2016 ($234,400). November’s price increase marks the 69th straight month of year-over-year gains.
- The statewide median sales price for single-family existing homes last month was $240,000, up 9.1 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in November was $176,000, up 8.6 percent over the year-ago figure. November was the 71st consecutive month that statewide median prices for both sectors rose year-over-year.
Miami’s Cash Buyers Represent almost Double the National Figure
- Miami cash transactions comprised 39.4 percent of November total closed sales, compared to 43.1 percent last year. Miami cash transactions are almost double the national figure (22 percent).
- Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash. Miami has a higher percent of cash sales for condos due to lack of financing approvals for buildings.
- Condominiums comprise a large portion of Miami’s cash purchases as 54.5 percent of condo closings were made in cash in November compared to 24.0 percent of single-family home sales.
Seller’s Market for Single-Family Homes, Supply Declines in November
- Inventory of single-family homes decreased 6.3 percent in November from 6,605 active listings last year to 6,191 last month. Condominium inventory increased 4.5 percent to 15,477 from 14,810 listings during the same period in 2016.
- Monthly supply of inventory for single-family homes decreased 3.3 percent to 5.8 months, which indicates a seller’s market. Existing condominiums have a 14.2-month supply, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
- Total active listings at the end of November increased 1.2 percent year-over-year, from 21,415 to 21,668. Active listings remain about 60 percent below 2008 levels when sales bottomed.
- New listings of Miami single-family homes increased 1.6 percent to 1,584 from 1,559. New listings of condominiums increased 3.3 percent, from 2,217 to 2,290.
- Nationally, total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace, which is down from 4.0 months a year ago.
Note: Statistics in this report were provided by the MIAMI Association of REALTORS®