Miami Home Sales Continue to Enjoy Monthly Gains in November
Percentage of cash transactions in Miami doubles the national average
According to the Miami Association of Realtors, total Miami-Dade County Florida home sales increased 7 percent year-over-year in November 2018, marking the market's fifth consecutive month of year-over-year transaction gains.
Total Miami home sales have now increased year-over-year in July, August, September, October and November, putting the market on pace to post more total sales this year than 2017. The Miami condo market has registered 12,793 transactions so far this year through November, a 6.8 percent increase from this time last year. The Miami single-family home market has recorded 11,920 sales this year through November, a 1.6 percent increase from this time last year.
"Miami real estate continues trending upward," said M.A.R. Chairman of the Board George C. Jalil. "The Miami condo market increases last month are particularly noteworthy as the market posted big sales increases near the bottom of the market ($150K to $300K price range) and at the top of the market ($1-million-and-up). Increased inventory and sellers becoming more reasonable with their prices are leading to more home sales."
Miami Existing Condo Sales Have Increased in Nine of the last 11 Months
Miami existing condo sales increased 8.8 percent year-over-year in November, from 965 to 1,050.
The largest segment of growth for existing condo sales is the $150,000 to $300,000 range. The segment recorded 535 condo sales, an increase of 19.4 percent from November 2017. The luxury sector ($1 million and up) also proved noteworthy in November 2018, posting 19.5 percent more sales in November 2018 (49 transactions) vs. November 2017 (41 transactions).
Miami Single-Family Home Sales Increase 5.2 Percent in November
Miami-Dade County single-family home sales increased 5.2 percent year-over-year, from 947 to 996.
The largest segment of growth for single-family home sales is the $250,000 to $600,000 range. The segment recorded 652 single-family home sales, an increase of 12.9 percent from November 2017. The Miami luxury market ($1 million and up) surged 35.5 percent in November 2018, increasing from 62 sales to 84.
Sales Dollar Volume Increased 15.5 Percent to $916 Million
Total sales volume increased to $916 million from $793 million in November 2017. Existing condo sales volume increased from $334.6 million to $377.7 million (an increase of 12.9 percent). Single-family home total dollar volume rose 17.3 percent, from $459 million to $538.3 million.
Luxury sales played a role in the rise of the total sales volume. Miami single-family $1 million-and-up luxury sales increased 35.5 percent, from 62 to 84. Existing luxury condo sales increased 19.5 percent, from 41 to 49.
Luxury single-family home sales have now increased or stayed even for seven consecutive months. Luxury existing condo sales have increased in seven of the last nine months.
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.
Seven Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 5.2 percent in November 2018, increasing from $330,000 to $355,000. Miami single-family home prices have risen for 84 consecutive months, a streak of seven years. Existing condo prices stayed even year-over-year at $230,000. Condo prices have increased or stayed even in 87 of the last 90 months.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.87 percent in November from 4.83 percent in October. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 5.8 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 9.5 percent in November 2017. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales decreased 34.8 percent year-over-year, from 181 in November 2017 to 118 last month.
Short sales and REOs accounted for 1.1 and 4.6 percent, respectively, of total Miami sales in November 2018. Short sale transactions decreased 53.1 percent year-over-year while REOs decreased 28 percent.
Nationally, distressed sales accounted for 2 percent of sales (lowest since NAR began tracking in October 2008), down from 4 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 48 days, a 12.7 percent decrease from 55 days last year. The median number of days between the listing date and closing date for single-family homes was 93 days, a 13.9 percent decrease from 108 days.
The median time to contract for condos was 64 days, a 21 percent decrease from 80 days last year. The median number of days between listing date and closing date decreased 13.1 percent to 106 days.
The median percent of original list price received for single-family homes was 95.2 percent. The median percent of original list price received for existing condominiums was 94.1 percent.
National and State Statistics
Nationally, total existing-home sales increased 1.9 percent from October to a seasonally adjusted rate of 5.32 million in November. Sales are now down 7.0 percent from a year ago (5.72 million in November 2017).
Statewide closed sales of existing single-family homes totaled 20,578 last month, up 3 percent compared to November 2017, according to Florida Realtors. Statewide closed condo sales totaled 8,643, up 4.9 percent compared to a year ago.
The national median existing-home price for all housing types in November was $257,700, up 4.2 percent from November 2017 ($247,200). November's price increase marks the 81st straight month of year-over-year gains.
November marked 83 months-in-a-row (more than six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $255,000, up 6.3 percent from the previous year. Last month's statewide median price for condo-townhouse units was $185,000, up 5.1 percent over the year-ago figure.
Miami's Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 36.9 percent of November 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 50.1 percent of condo closings were made in cash in November compared to 23.1 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 14.5 percent in November from 6,191 active listings last year to 7,091 last month. Condominium inventory increased 4.4 percent to 16,162 from 15,477 listings during the same period in 2017.
The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single-family homes.
Monthly supply of inventory for single-family homes increased 13.8 percent to 6.6 months, which indicates a balanced market. Existing condominiums have a 13.9-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 November increased 7.3 percent year-over-year, from 21,668 to 23,253. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes increased 2.7 percent to 1,627 from 1,584. New listings of condominiums decreased 3.2, from 2,290 to 2,217.
Nationally, total housing inventory at the end of November decreased to 1.74 million, down from 1.85 million existing homes available for sale in October. This represents an increase from 1.67 million a year ago, however. Unsold inventory is at a 3.9-month supply at the current sales pace, down from 4.3 last month and up from 3.5 months a year ago.