Greater Miami Area Condo Sales Implode 47 Percent in February

Greater Miami Area Condo Sales Implode 47 Percent in February

Residential News » Miami Beach Edition | By Michael Gerrity | March 23, 2023 8:26 AM ET

Greater Miami area total residential sales decreased 39.9% year-over-year in February 2023, from 2,814 transactions to 1,692, says the Miami Association of Realtors.

Breaking down Miami area sales data further, Miami area condo sales dove 46.6% year-over-year, from 1,807 transactions in February 2022 to 965 sales in February 2023. Meanwhile, Miami area single-family home sales also decreased 27.8% year-over-year, from 1,007 transactions in February 2022 down to 727 sales in February 2023.

Pending Sales and Showing Appointments Rise for Second Consecutive Month

Total pending sales rose 16.9% month-over-month, from 2,288 in January 2023 to 2,674 in February 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.

Showing appointments in the Southeast Florida MLS, increased 1.6% month over month to 237,395 showings in February.

South Florida Home Prices, Household Income Rise with Wealth Migration

Miami-Dade County single-family home median prices increased 3.5% year-over-year in February 2023, increasing from $536,000 to $555,000. Miami single-family median prices have risen for 135 consecutive months (11.25 years), the longest running-streak on record. Existing condo median prices increased 2.6% year-over-year, from $380,000 to $390,000. Condo median prices have increased in 136 of the last 141 months.

While local median prices have increased so have local household incomes. Miami and West Palm Beach rank in the top-10 in the U.S. in median home buyer growth (2019 vs 2021). Miami median homebuyer income grew 16.9% to $104,000 in 2021, and West Palm Beach median homebuyer income is $110,000 via Redfin report.

Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Miami single-family homes (3.8 months) and condos (4.5 months) are low. Also, one of the supports for home prices is rents and rents are up.

Miami-Dade Active Listings Still Near Historical Lows; More Supply Needed

The average year-end Miami annual active inventory since 2008 is 19,537 and active listings at the end of 2022 totaled 10,730. Miami active listings are down 48.7% versus pre-pandemic (year-end 2022 vs. year-end 2019).

Total active listings at the end of February 2023 increased 37.4% year-over-year, from 7,484 to 10,282.

Inventory of single-family homes increased 63.5% year-over-year in February 2023 from 2,212 active listings last year to 3,617 last month. Condominium inventory increased 26.4% year-over-year to 6,665 from 5,272 listings during the same period in 2022.

New listings of Miami single-family homes decreased 20.6% to 1,206 from 1,519 year-over-year. New listings of condominiums decreased 22.7%, from 2,419 to 1,871 year-over-year.

Months' supply of inventory for single-family homes increased 123.5% to 3.8 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 73.1% to 4.5 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Nationally, total housing inventory at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.

Miami Distressed Sales Remain Low, Reflecting Healthy Market

Only 0.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.6% in February 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.1% and 0.8% year-over-year, respectively, of total Miami sales in February 2023.

Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 2% of sales in February, nearly identical to last month and one year ago.

Miami Real Estate Attracting Near List Price

The median percent of original list price received for single-family homes was 95.1% in February 2023, down from 98.7% last year. The median percent of original list price received for existing condominiums was 95.7%, down from 97.8% last year.

The median number of days between listing and contract dates for Miami single-family home sales was 46 days, up from 25 days last year. The median time to sale for single-family homes was 85 days, up from 73 days last year.

The median number of days between the listing date and contract date for condos was 45 days, up from 38 days. The median number of days to sell for condos was 82 days, down from 81 days.

Miami Cash Sales 53.6% More than National Figure

Cash sales represented 43% of Miami closed sales in February 2023, compared to 43.9% in February 2022. About 28% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash buyers are not deterred by rising rates. 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 as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.

Cash sales accounted for 55.9% of all Miami existing condo sales and 25.9% of single-family transactions.

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