Miami-Dade County mid-market single-family home sales increased, and median prices rose for all property types in June, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Total sales declined last month mainly due to lack of supply in certain price points, but they are expected to increase in the future because of declining mortgage rates, increased consumer confidence and demand from high earners in tax-burdened states.
“From luxury to more affordable homes, Miami real estate offers unique and diverse neighborhoods for all types of homebuyers,” MIAMI Chairman of the Board José María Serrano said. “Locking in a mortgage at today’s sub-4% rates will prove valuable now and in the future. MIAMI Realtors have the expertise to help consumers in their home search.”
Total Miami Home Sales Decline in June
- Total Miami-Dade County home sales decreased 6.1% year-over-year, from 2,594 to 2,436. Coming off a robust May that pointed to growing demand, Miami home sales declined last month. Home sales also declined statewide and nationally. Year-to-date, however, Miami single-family home sales are down a negligible 1% and condo sales are even.
- Miami single-family home sales decreased 7.7%, from 1,337 to 1,234. Miami condo sales decreased 4.4%, from 1,257 to 1,202.
- Miami mid-market single-family home sales priced between $300,000 to $600,000 rose 9.84%, from 630 to 692.
- According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.80% in June, down from 4.07% in May. The average commitment rate across all of 2018 was 4.54%.
- Total sales volume decreased to $1.13 billion last month from $1.35 billion in June 2018. Single-family dollar volume increased 17.3% from $800.2 million to $661.7 million. Condo dollar volume decreased 15.4% from $552.5 million to $467.5 million.
- 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.
7.5 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 4.2% in June 2019, increasing from $355,000 to $370,000. Miami single-family home prices have risen for 91 consecutive months, a streak of 7.58 years. Existing condo prices increased 4.2%, from $240,000 to $250,000. Condo prices have increased or stayed even in 93 of the last 97 months.
Despite the price increase, Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 93 square meters of prime property, according to Knight Frank’s 2019 The Wealth Report. Monaco (16 square meters), Hong Kong (22), New York (31), Los Angeles (36) and others offer significantly less prime land for $1 million.
Miami Distressed Sales Stay Low, Reflecting Healthy Market
- Only 6.6% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.3% in June 2019. In 2009, distressed sales comprised 70% of Miami sales.
- Total Miami distressed sales decreased 2.4%, from 164 to 160.
- Short sales and REOs accounted for 1.1% and 5.5%, respectively, of total Miami sales in June 2019. Short sale transactions decreased 37.2% year-over-year while REOs increased 9.9% percent.
- Nationally, distressed sales represented 2% of sales in June, unchanged from May but down from 3% in June 2018. Less than 1% of June 2019 sales were short sales.
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 49 days, a 14% increase from 43 days last year. The median number of days between the listing date and closing date for single-family homes was 97 days, a 3.2% percent increase from 94 days.
- The median time to contract for condos was 77 days, a 4.1% increase from 74 days last year. The median number of days between listing date and closing date increased 2.6% percent to 118 days.
- The median percent of original list price received for single-family homes was 95.6 percent. The median percent of original list price received for existing condominiums was 93.8 percent.
National & State Statistics
- Nationally, total existing-home sales dropped 1.7% from May to a seasonally adjusted annual rate of 5.27 million in June. Sales as a whole are down 2.2% from a year ago (5.39 million in June 2018).
- Statewide closed sales of existing single-family homes totaled 27,283 last month, down 1.9% from June 2018, according to Florida Realtors. Florida’s condo-townhouse market had 10,094 sales, down 9.4% compared to a year ago.
- The national median existing-home price for all housing types in June reached an all-time high of $285,700, up 4.3% from June 2018 ($273,800). June’s price increase marks the 88th straight month of year-over-year gains.
- June’s statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 90 months in a row. The statewide median sales price for single-family existing homes was $270,000, up 3.8% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $194,900, up 2.6% over the year-ago figure.
Miami’s Cash Buyers Represent Double the National Figure
- Miami cash transactions comprised 31.9% of June 2019 total closed sales, compared to 36.4% last year. Miami cash transactions are double the national figure (16%).
- Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international homebuyers, who tend to purchase properties in all cash.
- Condominiums comprise a large portion of Miami’s cash purchases as 44.8% of condo closings were made in cash in June compared to 19.5% of single-family home sales.
Balanced Market for Single-Family Homes, Buyer’s Market for Condos
- Inventory of single-family homes increased 6.6% in June from 6,212 active listings last year to 6,623 last month. Condominium inventory increased 1.4% to 15,269 from 15,488 listings during the same period in 2018.
- The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single-family homes.
- Months supply of inventory for single-family homes increased 3.3% to 6.2 months, which indicates a balanced market. Existing condominiums have a 13.4-month supply, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
- Total active listings at the end of June increased 2.9% year-over-year, from 21,481 to 22,111. Active listings remain about 60 percent below 2008 levels when sales bottomed.
- New listings of Miami single-family homes decreased 8.5% percent to 1,601 from 1,749. New listings of condominiums decreased 12%, from 2,183 to 1,920.
- Nationally, total housing inventory at the end of June increased to 1.93 million, up from 1.91 million existing-homes available for sale in May, but unchanged from the level of one year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from the 4.3-month supply recorded in both May and in June 2018.