Miami Area Residential Sales Slip 13 Percent Annually in August

Miami Area Residential Sales Slip 13 Percent Annually in August

Residential News » Miami Beach Edition | By Michael Gerrity | September 25, 2023 7:39 AM ET

Greater Miami area residential sales decreased 13.1% year-over-year in August 2023, from 2,505 transactions in August 2022 to 2,178 in August 2023, because of elevated mortgage rates and lack of supply in certain price points.

Miami single-family home sales decreased 8.1% year-over-year, from 1,032 in August 2022 to 948 in August 2023. Miami existing condo sales decreased 16.5% year-over-year, from 1,473 in August 2022 to 1,230 in August 2023.

Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of September 14. That's up from 7.12% the prior week and 6.02% one year ago.

Total active listings at the end of August decreased 6.4% year-over-year, from 10,113 to 9,467.

Inventory of single-family homes decreased 19.7% year-over-year in August 2023 from 3,813 active listings last year to 3,062 last month. Condominium inventory increased 1.7% year-over-year from 6,300 to 6,405 listings during the same period in 2022.

New listings of Miami single-family homes decreased 7.8% from 1,573 to 1,450 year-over-year. New listings of condominiums decreased 5.5%, from 2,118 to 2,002 year-over-year.

Months' supply of inventory for single-family homes is 3.5 months, which indicates a seller's market. Inventory for existing condominiums is 5.4 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Miami-Dade County single-family home median prices increased 12.5% year-over-year in August 2023, increasing from $551,250 to $620,000. Miami single-family median prices have risen for 141 consecutive months (11.75 years), the longest running-streak on record. Existing condo median prices increased 10.9% year-over-year from $375,000 to $416,000. Condo median prices have stayed even or increased in 141 of the last 147 months.

Miami ranks No. 4 in the U.S. for annual home price appreciation, according to the latest US CoreLogic S&P Case-Shiller Index.

Historically, a market with less than 6 months of supply will have appreciating prices. Miami single-family homes and existing condos are at 3.5 and 5.4 months, respectively.

Only 1.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.9% in August 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.3% and 0.9% year-over-year, respectively, of total Miami sales in August 2023.

Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in August 2023, virtually unchanged from last month and the prior year.

The median percent of original list price received for single-family homes was 97.4% in August 2023. The median percent of original list price received for existing condominiums was 96.5%.

The median number of days between listing and contract dates for Miami single-family home sales was 23 days, up from 21 days last year. The median time to sale for single-family homes was 64 days, up from 61 days last year.

The median number of days between the listing date and contract date for condos was 34 days, up from 23 days. The median number of days to sale for condos was 76 days, down from 65 days.

Cash sales represented 40.3% of Miami closed sales in August 2023, compared to 39.7% in August 2022. About 27% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash sales accounted for 49.8% of all Miami existing condo sales and 27.9% of single-family transactions.

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