Miami Residential Sales Dip 13.6 Percent Annually in July as Prices Still Rise

Miami Residential Sales Dip 13.6 Percent Annually in July as Prices Still Rise

Residential News » Miami Beach Edition | By Michael Gerrity | August 23, 2023 7:36 AM ET

Based on new data by the Miami Association of Realtors, Miami-Dade County area total home sales decreased 13.6% year-over-year in July 2023, from a historic 2,375 transactions in July 2022 to 2,051 in July 2023, because of elevated mortgage rates and lack of supply in certain price points.

Miami single-family home sales decreased 8.9% year-over-year, from 999 in July 2022 to 910 in July 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.

Miami existing condo sales decreased 17.1% year-over-year, from a historic 1,376 in July 2022 to 1,141 in July 2023, due to lack of inventory and rising mortgage rates.

Miami-Dade single-family pending sales rose for the second consecutive month, increasing year-over-year from 1,016 to 1,032 transactions. While not all pending sales close, pending sales are an indicator of future sales.

Miami-Dade County single-family home median prices increased 10.8% year-over-year in July 2023, increasing from $570,000 to $631,670. Miami single-family median prices have risen for 140 consecutive months (11.7 years), the longest running-streak on record. Existing condo median prices increased 10.5% year-over-year to $420,000 from $380,000. Condo median prices have stayed even or increased in 140 of the last 146 months. Miami ranks No. 4 in the U.S. 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 3.2 and 5.1 months, respectively.

The monthly historical average for Miami-Dade inventory is 20,302 and current inventory is at 8,964. Total inventory is down 59.1% from pre-pandemic (July 2019), from 21,906 to 8,964. Total active listings at the end of July decreased 10.1% year-over-year, from 9,973 to 8,964.

Inventory of single-family homes decreased 23.3% year-over-year in July 2023 from 3,727 active listings last year to 2,860 last month. Condominium inventory decreased 2.3% year-over-year to 6,246 from 6,104 listings during the same period in 2022.

New listings of Miami single-family homes decreased 23.4% to 1,255 from 1,639 year-over-year. New listings of condominiums decreased 18.2%, from 2,109 to 1,726 year-over-year.

Months' supply of inventory for single-family homes increased 3.2% to 3.2 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 54.5% to 5.1 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Only 1.3% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.7% in July 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 July 2023.

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

The median percent of original list price received for single-family homes was 97.2% in July 2023, down from 99% last year. The median percent of original list price received for existing condominiums was 96.4%, down from 99% last year.

The median number of days between listing and contract dates for Miami single-family home sales was 24 days, up from 17 days last year. The median time to sale for single-family homes was 68 days, up from 62 days last year.

The median number of days between the listing date and contract date for condos was 32 days, up from 20 days. The median number of days to sale for condos was 77 days, down from 64 days.

Cash sales represented 39.6% of Miami closed sales in July 2023, compared to 41.3% in July 2022. About 26% of U.S. home sales are made in cash, according to the latest NAR statistics. Cash sales accounted for 50.2% of all Miami existing condo sales and 26.4% of single-family transactions.

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