Miami Home Sales Uptick in September
According to the Miami Association of Realtors, Miami-Dade County single-family home transactions rose 2.9 percent year-over-year in September 2015, from 1,166 to 1,200. Existing condominiums -- which are competing with a significant rise in supply of new construction properties east of Interstate-95 -- had 8.3 percent fewer sales in September, decreasing from 1,425 to 1,307.
"After a historic summer of home sales and rising prices, the Miami single-family home market continued its upward trend in September," said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of Miami Association of Realtors. "Not only are more single-family homes being sold compared to last year, but it is taking significantly less time to complete those transactions. Existing condominiums are also seeing fewer days on the market and higher median sales prices. Miami's existing condominium segment remains on pace to finish 2015 as one of the top local sales years on record."
Historically-low mortgage rates continue to encourage more local home buying activity. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.89 percent in September 2015, down from 4.16 percent a year ago.
Total existing Miami-Dade County residential sales, including single-family and condo markets, declined 3.2 percent to 2,507 last month compared to 2,591 a year ago. In addition to increased sales of new construction properties, Miami's existing condominium sector is also being impacted by a lack of access to mortgage loans.
A large number of existing South Florida condominium buildings aren't approved for Federal Housing Administration loans. Of the 8,523 condominium buildings in Miami-Dade and Broward Counties, only 29 are approved for FHA loans, according to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA. Just .0034 percent of local condo buildings are approved for FHA loans. The U.S. average is 30 percent.
"Increasing the number of local condo buildings approved for FHA loans will increase the ability for more South Florida residents to gain the dream of homeownership," said Danielle Blake, Miami Association of Realtors' Senior Vice President of Government Affairs & Housing. "The Miami Association of Realtors continues to work on ways to increase access to these mortgage loans."Single-Family Homes Register Double-Digit Price Growth
The median sales price for single-family homes rose 14.0 percent, up to $285,000 in September 2015 from $250,000 in September 2014. Single-family home prices remain at 2004 levels despite four years of consistent year-over-year increases.
The median sales price for condominiums increased 2.8 percent in September to $200,500 from $195,000 a year ago. Miami existing condo prices have increased in 51 of the last 52 months.
Despite the increase in median prices, Miami's residential properties are still a bargain globally. A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to the National Association of Realtors 2015 Profile of Home Buying Activity of International Clients. The price for the same condo in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million) were at least five times higher, according to NAR.Miami Real Estate Continues Selling Close to List Price
Miami properties continue to sell close to asking price, reflecting strong consumer demand. The average percent of original list price received was 95.9 percent, an increase of 0.3 percent from a year earlier. The median number of days on the market for Miami single-family homes dropped 19.6 percent to 37 days in September 2015 from 46 days in September 2014.
The median number of days on the market for condominiums sold in September 2015 was 58 days, a 1.7 percent decrease from 59 days in September 2014. The average percent of original list price received was 93.7 percent, a 0.2 percent year-over-year decrease.National and State statistics
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 4.7 percent to a seasonally adjusted annual rate of 5.55 million in September from a slightly downwardly revised 5.30 million in August, according to the National Association of Realtors (NAR). National sales are now 8.8 percent above a year ago (5.10 million).
Statewide, closed sales of existing single-family homes totaled 23,574 last month rose 13.4 percent over September 2014, according to Florida Realtors. Florida's condominium sales jumped to a total of 9,348 transactions, up 8.4 percent compared to September 2014.
The national median existing-home price for all housing types in September was $221,900, which is 6.1 percent above September 2014 ($209,100), according to NAR. September's price increase marks the 43rd consecutive month of year-over-year gains.
The statewide median sales price for single-family existing homes last month was $199,900, up 11.1 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties was $150,000, up 5.1 percent compared to last year.Miami's Cash Buyers Represent More than Twice the National Average
In September, cash deals represented 48.7 percent of Miami's total closed sales, which is more than double the national average. Just 24 percent of all U.S. housing sales were made in cash in September, according to NAR. Cash transactions represented 55.8 percent of total Miami deals in September 2014. 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.
Condominiums comprise a large portion of Miami's cash purchases as 62.4 percent of condo closings were made in cash in September compared to 33.8 percent of single-family home sales.Distressed Property Transactions Decline in Miami
Distressed property transactions declined in Miami. Only 24.3 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 34.5 percent in September 2014.
Short sales and REOs accounted for 5.0 percent and 19.3 percent, respectively, of total Miami sales in September. Short sale transactions dropped 44.9 percent year-over-year while REOs decreased 27.4 percent.
Nationally, distressed sales were 7 percent of sales in September, down from 10 percent a year ago.Seller's Market for Single-Family Homes; Balanced Market for Existing Condos
Active listings at the end of September increased 2.0 percent year-over-year, from 17,480 to 17,837. Active listings remain about 60 percent below 2008 levels when sales bottomed.
The single-family sector is in a seller's market as inventory continues to decline. Existing condominiums are in a balanced market. Inventory of single-family homes decreased 5.4 percent from 6,347 active listings last year to 6,002 last month. Condominium inventory increased 6.3 percent to 11,835 from 11,133 listings during the same period in 2014.
At the current sales pace, there is a 5.1-month supply of Miami single-family homes, a decrease of 11.7 percent from 5.7 months in September 2014. There is an 8.7-month supply of condominium inventory, up from 8.1 months in September 2014, an increase of 8.3 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of Miami single-family homes increased 3.0 percent from 2,021 in September of last year to 2,081 last month. New listings of condominiums decreased 1.0 percent to 2,810 last month, compared to 2,837 during the same time period in 2014.
Nationally, total housing inventory at the end of September decreased 2.6 percent to 2.21 million existing homes available for sale, and is now 3.1 percent lower than a year ago (2.28 million). Unsold inventory is at a 4.8-month supply at the current sales pace.New Construction Market Update
Strong sales in the preconstruction condominium Miami market east of Interstate 95 continue to reflect significant demand for new properties, according to the latest New Construction Market Status Report released by the preconstruction condo projects website Cranespotters.com and Miami Association of Realtors.
Twenty-seven towers with 576 floors and 3,109 units have been completed in Miami-Dade County east of I-95 in the four years since 2011, according to the Oct. 21 report. There are 78 towers with 1,578 floors and 9,430 units under construction in Miami east of I-95. About 66 towers with 1,538 floors and 9,859 units are planned, but have not begun development. There are also 65 towers with 1,626 floors and 11,280 units that have been proposed in Miami east of I-95.
According to the most recent developers' price survey conducted by Cranespotters.com in May 2015, Miami-Dade County developers have announced 215 towers with 5,160 floors and 31,530 units since 2011. Of the above projects:
- 103 projects with 119 towers comprising 17,199 units are selling.
- 71 percent of units have been sold.
- The mean minimum price per square foot of these units is $949, compared to $952 last month.