Greater Miami Area Residential Sales Dip 8 Percent Annually in November

Greater Miami Area Residential Sales Dip 8 Percent Annually in November

Residential News » Miami Edition | By Michael Gerrity | December 26, 2023 10:41 AM ET

Based on new data by the Miami Association of Realtors, total Miami-Dade residential sales decreased 7.8% in November 2023, from 1,791 to 1,651, due to elevated mortgage rates and low inventory in key price points. November home transactions came to terms in October, which saw rates peak at 7.8%. The statistics don't include South Florida's robust developer new construction market and volume.

Miami single-family home sales decreased 1.5% year-over-year, from 718 in November 2022 to 707 in November 2023. Miami single-family home sales, which saw an increase in transactions in September 2023, still has a lack of inventory in key price points as elevated mortgage rates have impacted buyers looking to finance.

Miami existing condo sales decreased 12% year-over-year, from 1,073 in November 2022 to 944 in November 2023. The condo market has been more impacted by lack of inventory at key price points and elevated mortgage rates.

Miami new listings increased 7.7% year-over-year in November 2023, from 2,982 to 3,211. The Miami-Dade market remains in a seller's market but the fresh supply of listings will give buyers more options.

Miami single-family homes new listings increased 0.97% while Miami condo new listings jumped 11.93% year-over-year.

Total inventory is down 42.9% from the historical average for Miami. The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 11,576.

Total active listings at the end of November increased 3.6% year-over-year, from 11,178 to 11,576.

Inventory of single-family homes decreased 10.1% year-over-year in November 2023 from 4,288 active listings last year to 3,856 last month. Condominium inventory increased 12% year-over-year from 6,890 to 7,720 listings during the same period in 2022.

Months' supply of inventory for single-family homes is 4.4 months, which indicates a seller's market. Inventory for existing condominiums is 6.8 months, which indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Nationally, total housing inventory registered at the end of November was 1.13 million units, down 1.7% from October but up 0.9% from one year ago (1.12 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, down from 3.6 months in October but up from 3.3 months in November 2022.

Miami-Dade County single-family home median prices increased 11.8% year-over-year in November 2023, increasing from $550,000 to $615,000. Miami single-family median prices have risen for 144 consecutive months (12 years), the longest running-streak on record. Existing condo median prices increased 6.3% year-over-year from $395,000 to $420,000. Condo median prices have stayed even or increased in 144 of the last 150 months.

Miami is tied for No. 3 in the U.S. for annual home price appreciation, according to the latest US CoreLogic S&P Case-Shiller Index.

Miami total dollar volume totaled $1.33 billion in November 2023. Single-family home dollar volume increased 8.8% year-over-year to $698 million. Condo dollar volume decreased 9.7% year-over-year to $637 million.

Only 0.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.6% in November 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0% and 0.9% year-over-year, respectively, of total Miami sales in November 2023.

Miami's percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 1% of sales in November 2023, virtually unchanged from last month and the prior year.

The median percent of original list price received for single-family homes was 97% in November 2023. The median percent of original list price received for existing condominiums was 96%.

The median number of days between listing and contract dates for Miami single-family home sales was 23 days, down from 31 days last year. The median time to sale for single-family homes was 64 days, down from 74 days last year.

The median number of days between the listing date and contract date for condos was 32 days, up from 35 days. The median number of days to sale for condos was 72 days, up from 74 days.

Cash sales represented 40.9% of Miami closed sales in November 2023, compared to 42.3% in November 2022. About 27% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash buyers are not deterred by rising rates. 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 as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.

Cash sales accounted for 50.2% of all Miami existing condo sales and 28.4% of single-family transactions.

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