This week the Miami Association of Realtors reported that Miami-Dade county's single-family home sales increased in January 2015, and all residential median sale prices continued their more than three years of consistent growth.
Sales increase for Single-family Homes, Decline for Condos
Miami single-family home sales, which set an all-time annual record in 2014, increased 6.5 percent relative to January 2014, from 904 to 963. Condominium sales -- which posted the second best year in Miami history last year despite increased supply of new condo construction -- decreased 15 percent from 1,270 in January of last year to 1,080 last month. Combined, residential real estate sales decreased 6 percent to 2,043 last month compared to 2,174 during the same time period in 2014.
"Miami is seeing a consistent and steady increase in single-family home sales while condo buyers are trending to the new coastal units becoming available," said Christopher Zoller, the 2015 Residential President of the Miami Association of Realtors. "More houses are coming on the market, which means sellers are feeling confident about the housing market and strong sales show that buyers are also feeling confident."
Single-family home prices, which again increased in January year-over-year, remain at affordable 2004 levels despite more than three years of consistent year-over-year increases. Condo prices also increased in January 2015, marking 43 months of growth in the last 44 months. The median sale price for single-family homes increased 5.6 percent, up to $237,500 in January 2015 from $225,000 in January 2014. The average sale price for single-family homes decreased 4 percent to $392,172 last month from $408,626 during the same time period last year.
Compared to January 2014, the median sale price for condominiums increased 1.3 percent to $188,500 from $186,000 a year prior. The average sale for condominiums increased 3.2 percent to $372,978 from $361,282 in January 2014.
Miami Real Estate Continues Selling Fast, Close to List Price
Miami single-family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single-family homes sold in January 2015 was just 51 days, an increase of 10.9 percent compared to the same period in 2014. The average percent of original list price received was 94.3 percent, down a negligible 1.2 percent from a year earlier.
The median number of days on the market for condominiums sold in January 2015 was 66 days, an increase of 17.9 percent compared to the same period in 2014. The average percent of original list price received was 93 percent, a 3.2-percent decrease.
National and State statistics
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops posted a year-over-year increase in January. All national existing housing sales decreased 4.9 percent from December, but were up 3.2 percent from January 2014, according to the National Association of Realtors (NAR). Statewide closed sales of existing single-family homes totaled 16,087 last month, up 10 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 7,294, down 1.7 percent compared to January 2014.
The national median existing-home price for all housing types in January was $199,600, which is 6.2 percent above January 2014, according to NAR. The national median home price has now seen 35 consecutive months of year-over-year price gains. The statewide median sale price for single-family existing homes last month was $175,000, up 7.4 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in January was $137,000, up 5.4 percent over the previous year.
Cash Sales Decline Slightly, Condo Financing Remains an Obstacle
Cash sales in Miami continue to decline as more financing becomes available. Access to mortgage loans for condominium buyers, however, remains limited. The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening.
In Miami-Dade County, 57.3 percent of total closed sales in January 2015 were all-cash transactions, compared to 61.9 percent in the same time period last year. All-cash sales accounted for 42.5 percent of single-family home and 70.5 percent of condominium closings, compared to a year earlier when cash sales were 47.3 percent of single-family home sales and 72.3 percent of condominium sales. Miami's percentage of all-cash sales is more than double the national average. About 27 percent of all national housing transactions were in cash in January 2015, according to NAR.
Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this continues to reflect Miami's ability to attract international buyers.
"Miami continues to be the place to be for the international market," Zoller said. "And it's not just international buyers. Northerners are coming here in new numbers because they're being pushed out of the northeast by the weather. Miami's exciting world-class lifestyle, less expensive real estate, warm weather and strengthening job market are bringing buyers from the Northeast and elsewhere here."
Short Sales Continue to Decline in Miami
While traditional sales remain strong, distressed property transactions declined in Miami-Dade in January 2015 due to fewer short sales. In January 2015, only 34.9 percent of all closed residential sales in Miami were distressed, including REO (bank-owned properties) and short sales, compared to 38 percent in January 2014.
Short sales and REOs accounted for 7.8 percent and 27.1 percent, respectively, of total Miami sales in January 2015. Sales of REOs increased 3.6 percent year-over-year while that of short sales declined 45 percent.
Nationally, distressed homes accounted for 11 percent of January sales compared to 26 percent during the same time period last year.
Active Listings on the Rise
After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed in Miami.
Active listings at the end of January increased 12 percent, from 16,358 in the same time period last year to 18,315 last month. Active listings remain about 60 percent below 2008 levels when sales bottomed. Inventory of single-family homes increased 8.4 percent from 6,021 active listings last year to 6,524 last month. Condominium inventory increased 14.1 percent to 11,791 from 10,337 listings during the same period in 2014.
At the current sales pace, there is a 5.8-month supply of single-family homes, an increase of 3.6 percent from 5.6 months in January 2014. There is an 8.7-month supply of condominium inventory, up from 7.2 months in January 2014, an increase of 21.6 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of single-family homes increased 3 percent from 2,288 in January of last year to 2,356 last month. New condominium listings decreased 4.3 percent to 3,190 last month, compared to 3,333 during the same time period in 2014.
At the end of the January, total housing inventory nationally decreased 0.5 percent to 1.87 million existing homes available for sale compared to the previous month, which represents a 4.7-month supply at the current sales pace.
January 2015 New Construction Market Update
Strong sales in the coastal new construction condominium Miami market (east of I-95) continue to reflect significant demand for new properties, according to the latest New Construction Market Status Report released by Cranespotters.com.
Since 2011, nine towers with 981 units have been completed in Miami-Dade County east of I-95. As of the Feb. 16 report, 68 towers with 9,624 units are under construction, and 79 towers with 11,832 units are planned but have not begun development. There are also 51 towers with 7,758 units that have been announced but not approved.
Overall in Miami-Dade County, developers have announced 207 towers with 30,195 units since 2011 through Feb. 16. Of the above projects in Miami-Dade:
97 projects with 113 towers comprising 16,863 units are currently selling.
67 percent of units have been sold.
The mean price per square foot of these units is $874, compared to $856 last month.