Miami Luxury Residential Sales Surge in 2Q
The Miami Association of Realtors is reporting this week that the Miami residential market posted a robust second quarter as single-family home transactions, single-family luxury sales, median sale prices and dollar volumes all surged.
Miami single-family home sales rose 5.8 percent, increasing from 3,669 transactions in 2Q 2016 to 3,882. Single-family home luxury sales ($1 million and up) surged 25.2 percent to 303 transactions.
Existing condominiums sales -- which are competing with a strong new construction market-- decreased 2.6 percent, from 3,921 to 3,818. Median sale prices increased for the 22nd consecutive quarter, rising 11.3 percent for single-family homes to $328,300 and 6.5 percent to $229,000 for condos.
Miami real estate has now seen five and a half years of price appreciation.
"There's strong demand for Miami real estate within the United States and around the globe," said Christopher Zoller, the 2017 MIAMI Chairman of the Board. "Every Miami single-family home price bracket above $200,000 posted sales increases in 2Q 2017."
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.99 percent for 2Q 2017, significantly higher than the 3.59 percent average recorded during the same quarter a year earlier.Hottest Miami-Dade Neighborhoods in 2Q 2017
Months' supply of inventory is a strong indicator of real estate activity. Top Miami neighborhoods with the lowest months of supply of inventory with significant closed sales activity in 2Q 2017:Miami Single-Family Homes
1.Richmond Heights, a South Dade community south of Kendall, had 0.9 months supply
2.Pinewood, a North Dade community west of Miami Shores, had 1.5 months supply
3.Westview, a North Dade community to the west of North Miami, had 1.8 months supply
4.Brownsville, a Central Dade neighborhood east of Miami Springs, had 1.8 months supply
5.Palmetto Estates, a South Dade community west of Palmetto Bay, had 2.0 months supplyMiami Condominiums
1.Miami Lakes, a North Dade town north of Hialeah, had 1.3 months supply
2.West Perrine, a South Dade community west of Palmetto Bay, had 1.4 months supply
3.Richmond Heights, a South Dade community south of Kendall, had 2.0 months supply
4.Kendale Lakes, a South Dade community west of South Miami, had 2.1 months supply
5.Tamiami, a South Dade community west of Westchester, had 2.4 months supplyTotal Sales Rise 1.45 Percent
Total existing Miami-Dade County residential sales -- which posted a record year in 2013 and near record years in 2014 and 2015 -- increased 1.45 percent year-over-year in 2Q 2017 from 7,590 to 7,700.
Total sales volume accounted for $3.3 billion in 2Q 2017, a 3.1 percent increase from the $3.2 billion sales volume a year ago. The sales do not include Miami's multi-billion dollar new construction condo market.
Total Miami distressed sales have declined 42.1 percent year-over-year, from 1,295 transactions in 2Q 2016 to 750 in 2Q 2017. Only 9.7 percent of all closed residential sales in Miami were distressed in 2Q 2017, including REO (bank-owned properties) and short sales, compared to 17.1 percent in 2Q 2016. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 3.3 and 7.2 percent, respectively, of total Miami sales in 2Q 2017. Short sale transactions increased 5.5 percent year-over-year while REOs fell 47.0 percent.Miami Median Prices for Single-Family Homes, Condos Climb in 2Q
The median price for single-family homes in Miami-Dade County increased to $328,300 in the second quarter, a 11.3 percent jump from $295,000 in the same period last year. The median price for existing condominiums increased 6.5 percent year-over-year from $215,000 to $229,000.
Statewide, the median sales price for single-family existing homes in 2Q 2017 was $240,000, up 9.1 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $175,000, up 7.4 percent over the year-ago figure.State Home Sales Rise in 2Q 2017
Statewide, closed sales of existing single-family homes totaled 79,888 in 2Q 2017, up 3.7 percent over the 2Q 2016 figure, according to Florida Realtors. Florida's townhome-condo market totaled 32,827 during 2Q 2017, up 3 percent compared to 2Q 2016.Seller's Market for Single-Family Homes, Buyer's Market for Condos
At the current sales pace, the number of active listings represents 5.4 months of inventory for single-family homes and 13.6 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami real estate had 21,119 active listings in the second quarter, a 3.6 percent increase from the 20,384 listings at the same time last year. The inventory for single-family homes decreased 3.8 percent, from 6,292 to 6,052. Miami existing condo inventory grew 6.9 percent, from 14,092 to 15,067.Miami Homes Selling Close to List Price
The median percent of original list price received was 95.4 percent for single-family homes and 93.7 percent for condos in 2Q 2017.
The median time to contract for single-family home listings was 49 days, a 4.3 percent decrease from 47 days in 2Q 2016. The median time to contract for existing condos was 74 days, a 12.1 percent increase from 66 days in 2Q 2016.
The median time to sale for single-family homes decreased 2.0 percent, from 98 days to 100. The median time to sale for existing condos increased 3.6 percent, from 112 days to 116.Miami Cash Sales More Than Double National Figure
Cash sales represented 38.6 percent of Miami closed sales in the second quarter of 2017. About 18 percent of U.S. home properties are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami's top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 53.5 percent of all Miami existing condo sales and 23.9 percent of single-family transactions.