According to the Miami Association of Realtors, Miami's existing condominium market posted its best April in three years as condo transactions jumped 24.6 percent and condo dollar volume surged 40.8 percent year-over-year. Miami single-family home sales and residential prices rose.
Miami-Dade County posted 1,384 existing condo transactions in April 2018, up 24.6 percent from 1,111 the year before. It was the condo market's best April since 2015 (1,444 sales). Year-to-date Miami condo sales are now up 2.1 percent from last year. Total Miami home sales in April 2018 jumped 12.9 percent while single-family home transactions rose 2.1 percent, from 1,192 to 1,217.
"A significant increase in condo transactions in the $150,000 to $300,000 range played a central role in this robust month for Miami real estate," said George Jalil, a Miami broker and the 2018 MIAMI chairman of the board. "Miami condo pending sales are up 13.6 percent, which indicates another strong month of sales on the horizon."
Total Miami Home Sales, Dollar Volume Surge in April
Total Miami home sales increased 12.9 percent year-over-year in April, from 2,303 to 2,601.
Total sales volume for all properties jumped 17.8 percent, from $1.01 billion to $1.19 billion. Existing condos saw the biggest increase, rising from $401.7 million total sales volume to $565.4 million (an increase of 40.8 percent). Single-family home total dollar volume rose 4.9 percent, from $603.6 million to $633.3 million.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
Best April for Miami Condominium Sales Since 2015
Sales in the $150K to $300K range led the charge in the robust April for Miami existing condominiums.
The existing condo market had 679 sales in the $150K to $300K range in April 2018, up 46.7 percent from the 463 transactions a year ago. For years, there was little inventory in the aforementioned price range but inventory rose in April 2018. There are 4,269 existing condo listings active in the $150K to $300K at the end of the month, compared to 4,035 property listings in April 2017.
More than Six Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 7.8 percent in April 2018, increasing from $320,000 to $345,000. Miami single-family home prices have risen for 77 consecutive months, a streak spanning more than six years. Existing condo prices rose 5.4 percent, from $229,000 to $241,325 in April. Condo prices have increased in 80 of the last 83 months.
Low mortgage rates makes purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the seventh straight month to 4.47 percent in April (highest since 4.49 percent in September 2013) from 4.44 percent in March. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 6.1 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 10.0 percent in April 2018. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales declined 30.7 percent year-over-year, from 231 to 160 last month.
Short sales and REOs accounted for 1.7 and 4.5 percent, respectively, of total Miami sales in April 2018. Short sale transactions dropped 18.9 percent year-over-year while REOs fell 34.2 percent.
Nationally, distressed sales accounted for 3.5 percent of sales, down from 5 percent a year ago.
Miami Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Miami single-family home sales was 45 days, an 8.2 percent decrease from 49 days last year. The median number of days between the listing date and closing date for single-family properties was 90 days, a 10.9 percent decrease from 101 days.
The median time to contract for condos was 79 days, a 3.9 percent increase from 76 days last year. The median number of days between listing date and closing date decreased 0.8 percent to 120 days.
The median percent of original list price received for single-family homes was 95.8 percent. The median percent of original list price received for existing condominiums was 93.5 percent.
National and State Statistics
Nationally, total existing-home sales decreased 2.5 percent to a seasonally adjusted annual rate of 5.46 million in April from 5.60 million in March. With last month's decline, sales are now 1.4 percent below a year ago and have fallen year-over-year for two straight months.
Statewide closed sales of existing single-family homes totaled 24,804 last month, up 4.1 percent compared to April 2017, according to Florida Realtors. Statewide closed condo sales totaled 11,236 last month, up 9.2 percent compared to a year ago.
The national median existing-home price for all housing types in April was $257,900, up 5.3 percent from April 2017 ($245,000). April's price increase marks the 74th straight month of year-over-year gains.
The statewide median sales price for single-family existing homes last month was $253,895, up 8.1 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in April was $190,000, up 10.5 percent over the year-ago figure.
Miami's Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 38.9 percent of April 2018 total closed sales, compared to 39.4 percent last year. Miami cash transactions are almost double the national figure (21 percent).
Miami's high percentage of cash sales reflects South Florida's ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash. Miami has a higher percent of cash sales for condos due to lack of financing approvals for buildings.
Condominiums comprise a large portion of Miami's cash purchases as 53.5 percent of condo closings were made in cash in April compared to 22.5 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 2.1 percent in April from 6,182 active listings last year to 6,309 last month. Condominium inventory increased 2.9 percent to 15,744 from 15,307 listings during the same period in 2017.
The increase in inventory is for properties above $400,000. The market had a 6.3 percent jump in properties listed for $400,000 to $599,999, 6.8 percent for $600,000 to $999,999, and 3.1 percent for $1 million and above.
Miami saw a drop in inventory for properties below $400,000.
Monthly supply of inventory for single-family homes increased 7.1 percent to 6.0 months, which indicates a balanced market. Existing condominiums have a 14.3-month supply, which indicates a buyer's market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of February increased 2.6 percent year-over-year, from 21,489 to 22,053. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes increased 14.4 percent to 1,865 from 1,630. New listings of condominiums increased 8.5 percent, from 2,177 to 2,363.
Nationally, total housing inventory at the end of April increased 9.8 percent to 1.80 million existing homes available for sale, but is still 6.3 percent lower than a year ago (1.92 million) and has fallen year-over-year for 35 consecutive months. Unsold inventory is at a 4.0-month supply at the current sales pace (4.2 months a year ago).