According to the Miami Association of Realtors, total Miami-Dade County home sales surged 15.2 percent in 3Q 2018 as median prices for all properties rose for the 27th consecutive quarter.
Total Miami sales rose 15.2 percent, from 5,895 to 6,792. Miami condo transactions jumped 16.7 percent, from 3,021 to 3,524. Miami existing single-family sales increased 13.7 percent, from 2,874 to 3,268. Third quarter statistics include September, which was impacted by stalled sales in 2017 due to Hurricane Irma. While sales have been trending upwards, the percentage is higher than it might have been because of closings delayed by the hurricane last year.
"The statistics are being compared to a quarter that saw many South Florida home sales stalled, but a long view analysis of Miami real estate shows a market thriving with high demand and low supply," MIAMI Chairman of the Board George C. Jalil said. "Miami single-family home sales are on pace to better last year's total home sales numbers, and Miami condos have posted positive gains in three of the last four quarters."
$3.1 billion in Total Miami Sales Volume in 3Q 2018
Total sales volume accounted for $3.1 billion in 3Q 2018, a 24 percent increase from the $2.5 billion sales volume a year ago. The sales do not include Miami's multi-billion-dollar new construction condo market.
Non-distressed sales comprised 93 percent of all closed residential sales in 3Q 2018 vs. 90 percent in 3Q 2017. Only 6.8 percent of all closed residential sales in Miami were distressed in 3Q 2018, including REO (bank-owned properties) and short sales, compared to 10.4 percent in 3Q 2017. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 1.5 and 5.3 percent, respectively, of total Miami sales in 3Q 2018. Short sale transactions decreased 29.2 percent year-over-year while REOs fell 23.6 percent.
Miami Luxury Homes Sales Surge 27.9 Percent
Total luxury home sales ($1 million and above) jumped 27.9 percent, from 343 in 3Q 2017 to 439 in 3Q 2018.
Single-family home luxury sales fueled the $1-million-and-above transaction surge, increasing 33 percent to 254 transactions in 3Q 2018. Condo luxury transactions increased 21.7 percent to 185 transactions in 3Q 2018.
A rise in sales among mid-priced condos also played a key role in 3Q 2018. Miami condo sales in the $150,000 to $400,000 range increased 27.8 percent year-over-year, from 1,772 sales to 2,264.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.57 percent for 3Q 2018, up from the 3.89 percent recorded during the same quarter a year earlier.
Miami Median Prices Rise for 27th Consecutive Quarter
The median price for single-family homes in Miami-Dade County increased to $360,000 in the third quarter, an 8.5 percent jump from $331,750 in the same period last year. The median price for existing condominiums increased 3.3 percent year-over-year from $227,500 to $235,000.
Median prices have now increased for 27 consecutive quarters, a streak spanning 6.75 years.
Statewide, the median sales price for single-family existing homes in 3Q 2018 was $255,000, up 6.3 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $182,500, up 6.1 percent over the year-ago figure.
The national median existing single-family home price in the third quarter was $266,900, up 4.8 percent from the third quarter of 2017 ($254,700), according to the National Association of Realtors.
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 3Q 2018:
Richmond Heights, a small community south of Kendall, had 7 months supply
Westview, a north Dade community south of Opa-locka, had 4 months supply
Palmetto Estates, a South Dade community west of Palmetto Bay, had 2.7 months supply
El Portal, a small community south of Miami Shores, had 2.8 months supply
Palm Springs North, a northwestern Dade community south of the Broward line, had 3.0 months supply
Three Lakes, a South Dade community west of Kendall, had 2.2 months supply
Richmond West, a south Dade community west of Palmetto Bay, had 1.9 months supply
Tamiami, a South Dade community west of Kendall, had 2.2 months supply
Naranja, a south Dade community north of Leisure City, had 2.5 months supply
Miami Lakes, a north Dade town north of Hialeah, and Kendale Lakes, a south Dade community west of Kendall, each had 2.7 months supply
National, State Home Sales in 3Q 2018
Nationwide existing-home sales, including single family and condos, decreased 2.6 percent to a seasonally adjusted annual rate of 5.273 million in the third quarter, down from 5.413 million in the second quarter. That number is 2.4 percent lower than the 5.403 million pace during the third quarter of 2017, according to NAR.
Closed sales of single-family homes statewide totaled 72,843 in 3Q 2018, up 7.5 percent from the 3Q 2017 figure, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide totaled 28,894 during 3Q 2018, up 9.5 percent compared to 3Q 2017.
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 13.6 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami real estate had 22,087 active listings in the third quarter, a 5.7 percent increase from the 20,894 listings at the same time last year. The inventory for single-family homes increased 9.8 percent, from 6,060 to 6,652. Miami existing condo inventory grew 4.1 percent, from 14,834 to 15,435.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95.7 percent for single-family homes and 94.1 percent for condos in 3Q 2018.
The median time to contract for single-family home listings was 44 days, a 4.8 percent increase from 42 days in 3Q 2017. The median time to contract for existing condos was 74 days, a 5.7 percent increase from 70 days in 3Q 2017.
The median time to sale for single-family homes decreased 4.3 percent, from 94 days to 90. The median time to sale for existing condos increased 1.8 percent, from 114 to 116
Miami Cash Sales Almost Double National Figure
Cash sales represented 36.1 percent of Miami closed sales in the third quarter of 2018, compared to 39.9 percent in 3Q 2017. About 21 percent 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 American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 49.4 percent of all Miami existing condo sales and 21.8 percent of single-family transactions.