Miami Enjoys Both Condo, Home Sales Spikes in September
Based on new data by the Miami Association of Realtors, Miami-Dade County single-family home sales, condo sales, median prices, dollar volume and luxury transactions all increased year-over-year in September 2019.
Miami single-family home and condo sales jumped by double digits. Single-family home sales increased 10.4% year-over-year, from 978 to 1,080. Condo sales increased 11.4% year-over-year, from 1,041 to 1,160.
"New tax laws and low mortgage rates continue fueling Miami real estate," MIAMI Chairman of the Board José María Serrano said. "High earners from tax-burdened states are relocating to Miami, but not just because of monetary savings. Miami is home to one of the nation's fastest-growing downtowns, the world-renowned Art Basel Miami, a global reputation for fine art and design and the most cultural institutions in the Southeast."
Total Miami Home Sales Jump Double Digits in September
Total Miami-Dade County home sales increased 10.9% year-over-year, from 2,019 to 2,240. With consumer confidence rising, unemployment low, job creation high and increased migration to Florida, Miami real estate should enjoy steady growth.
Year to date, Miami single-family home sales are up 1.8% compared to the first nine months of 2018. Condo transactions are up 0.6% year to date.
Luxury ($1-million-and-up) home sales increased for single-family homes and condos in September 2019. Single-family home luxury sales increased 23.3% to 90 transactions last month. Condo luxury sales increased 16.7% to 63 transactions.
The increased number of luxury transactions raised the total dollar volume for Miami real estate last month. Single-family home dollar volume rose 19.8%, from $525.7 million to $629.5 million. Condo dollar volume jumped 14.5%, from $374.3 million to $428.6 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.61% in September, down from 3.62% in August. The average commitment rate across all of 2018 was 4.54%.
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.
A new condo approval process could increase sales in the future. The new guidance, which went into effect in mid-October, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR has championed, should yield thousands of new homeownership opportunities.
7.83 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 4.9% in September 2019, increasing from $360,000 to $377,750. Miami single-family home prices have risen for 94 consecutive months, a streak of 7.83 years. Existing condo prices increased 3.2%, from $237,500 to $245,000. Condo prices have increased or stayed even in 96 of the last 100 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 5.8% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.8% in September 2019. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 5.1%, from 137 to 130.
Short sales and REOs accounted for 1.3% and 4.6%, respectively, of total Miami sales in September 2019. Short sale transactions decreased 12.5% year-over-year while REOs decreased 2.9% percent.
Nationally, distressed sales represented 2% of sales in September, unchanged from August but down from 3% in September 2018.
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 57 days, a 21.3% increase from 47 days last year. The median number of days between the listing date and closing date for single-family homes was 104 days, a 14.3% percent increase from 91 days.
The median time to contract for condos was 87 days, a 24.3% increase from 70 days last year. The median number of days between listing date and closing date increased 15.3% percent to 128 days.
The median percent of original list price received for single-family homes was 95.3 percent. The median percent of original list price received for existing condominiums was 93.7 percent.
National and State Statistics
Nationally, total existing-home sales transactions fell 2.2% from August to a seasonally adjusted annual rate of 5.38 million in September. Despite the decline, overall sales are up 3.9% from a year ago (5.18 million in September 2018).
Statewide closed sales of existing single-family homes totaled 23,510 last month, up 11.5% from September 2018, according to Florida Realtors. Florida's condo-townhouse market totaled 9,007, up 6.1% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The national median existing-home price for all housing types in September was $272,100, up 5.9% from September 2018 ($256,900), as prices rose in all regions. September's price increase marks 91 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in September rose year-over-year for 93 consecutive months. The statewide median sales price for single-family existing homes was $265,000, up 5.3% 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 $193,000, up 5.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Miami's Cash Buyers Represent Almost Double the National Figure
Miami cash transactions comprised 33.9% of September 2019 total closed sales, compared to 35.4% last year. Miami cash transactions are almost double the national figure (17%).
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 46.1% of condo closings were made in cash in September compared to 20.9% of single-family home sales.
Seller's Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes decreased 3.1% in September from 6,652 active listings last year to 6,444 last month. Condominium inventory decreased 1.9% to 15,142 from 15,435 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 decreased 4.8% to 5.9 months, which indicates a seller's market. Existing condominiums have a 13-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 September decreased 2.3% year-over-year, from 22,087 to 21,586. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 3.7% percent to 1,619 from 1,682. New listings of condominiums decreased 11.2%, from 2,285 to 2,028.
Nationally, total housing inventory at the end of September sat at 1.83 million, approximately equal to the amount of existing-homes available for sale in August, but a 2.7% decrease from 1.88 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, up from 4.0 months in August and down from the 4.4-month figure recorded in September 2018.