Miami Enjoys $3.6 Billion of Residential Property Sales in Q2
According to the Miami Association of Realtors, Miami-Dade County existing home sales and median sale prices increased year-over-year in 2Q 2019.
Total Miami sales increased 0.6%, from 7,717 to 7,861. Single-family home sales increased 1.8%, from 3,784 to 3,854, year-over-year in 2Q 2019. Existing condo sales declined a negligible 0.6% year-over-year, decreasing from 4,033 to 4,007. Lack of FHA financing for condos in Florida and insufficient supply in some price points continue to negatively impact local housing sales activity.
"Interest from high earners in tax burdened states and declining mortgage rates continue to drive demand in the South Florida real estate market," MIAMI Chairman of the Board José María Serrano said. "The recent drop in interest rates to a three-year low is expected to further increase demand for local properties."
$3.6 billion in Total Miami Sales Volume in 2Q 2019
Sales volume accounted for $2.0 billion in single-family transactions and $1.6 billion in townhouse and condo sales in 2Q 2019, decreases of 2.8% and 8.7%, respectively. Sales figures do not include Miami's multi-billion-dollar new construction condo market.
Traditional Sales Account for 94% of Transactions
Non-distressed sales comprised nearly 94% of all closed residential sales in 2Q 2019 vs. 93% in 2Q 2018. Only 6.1% of all closed residential sales in Miami were distressed in 2Q 2019, including REO (bank-owned properties) and short sales, compared to 6.3% in 2Q 2018. In 2009, distressed sales comprised nearly 70% of Miami sales.
Short sales and REOs accounted for 1.1 and 4.9%, respectively, of total Miami sales in 2Q 2019. Short sale transactions decreased 25% year-over-year while REOs increased 3.8%.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.73% for 2Q 2019, down from the 4.55% average recorded during the same quarter a year earlier.
Miami Median Prices Rise for 30 Consecutive Quarters
The median price for single-family homes in Miami-Dade County increased to $360,000 in 2Q 2019, a 2.9% jump from $350,000 in the same period last year. The median price for existing condominiums increased 2.5% year-over-year from $240,875 to $247,000.
Median prices have now increased for 30 consecutive quarters, a streak spanning 7.5 years.
Statewide, median sales price for single-family existing homes in 2Q 2019 was $264,000, up 3.3% from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $195,00, up 2.9% over the year-ago figure.
The national median existing single-family home price in the second quarter was $279,600, up 4.3% from the second quarter of 2018 ($268,000), according to the National Association of Realtors (NAR).
Balanced Market for Single-Family Homes, Buyer's Market for Condos
At the current sales pace, the number of active listings represents 6.2 months of inventory for single-family homes and 13.4 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
At the end of 2Q, there were 22,111 active listings in Miami-Dade, a 2.9% increase from the 21,481 at in 2Q 2018. The inventory for single-family homes increased 6.6%, from 6,212 to 6,623. Miami existing condo inventory increased 1.4%, from 15,269 to 15,488.
Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months' supply of inventory is a strong indicator of real estate activity. Top Miami neighborhoods with the lowest months of supply of inventory in 2Q 2019:
1. Cutler Bay, a South Dade community, 3.1 months of supply
2. Miami Gardens, a north Dade city that borders the Broward-County line, 2.5 months supply
3. Pinewood, a central Dade community west of Miami Shores, 2.5 months supply
4. Richmond West, a south Dade community south of Kendall, 2.9 months supply
5. The Crossings, a south Dade community south of Kendall, 2.9 months supply
1. Country Club, a community in northwest Miami-Dade, 2.4 months of supply
2. Kendale Lakes, a community in west Kendall, 3.0 months of supply
3. Miami Lakes, a north Dade town north of Hialeah, had 2.8 months supply
4. Richmond West, a south Dade community west of Palmetto Bay, a 2.6 months supply
5. The Crossings, a south Dade community east of Kendall, had 2.6 months supply
National, State Home Sales in 2Q 2019
Nationwide existing single-family home sales increased 4.3% to a seasonally adjusted annual rate of 279.6 million in the second quarter, up from 268.0 million in the second quarter of 2018, according to NAR. Condo sales nationwide increased 3.6% to a seasonally adjusted annual rate of 255.04 million in the second quarter.
Closed sales of single-family homes statewide totaled 85,017 in 2Q 2019, up 4.6% from the 2Q 2018 level, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide closed sales totaled 34,128 during 2Q 2019, down 1.4% compared to 2Q 2018.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95.3% for single-family homes and 93.5% for condos in 2Q 2019.
The median time to contract for single-family home listings was 58 days, a 31.8% increase from 44 days in 2Q 2018. The median time to contract for existing condos was 76 days, a 1.3% decrease from 79 days in 2Q 2018.
The median time to sale for single-family homes increased 12.0%, from 92 days to 103. The median time to sale for existing condos increased 0.9%, from 116 to 117.
Miami Cash Sales Almost Double National Figure
Cash sales represented 34.4% of Miami closed sales in 2Q 2019, compared to 38.1% in 2Q 2018. About 16% 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 U.S. real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 47.4% of all Miami existing condo sales and 20.9% of single-family transactions.