Greater Miami Area Home Prices Jump 15 Percent Annually in 2023

Greater Miami Area Home Prices Jump 15 Percent Annually in 2023

Residential News » Miami Edition | By Michael Gerrity | January 23, 2024 8:45 AM ET

Miami continued to lead the nation in home price appreciation last year

Based on new data from the Miami Association of Realtors, greater Miami area single-family home sales increased 1.3% year-over-year in December 2023, from 744 to 754. Miami area existing condo sales decreased 7.2% year-over-year, from 1,035 in December 2022 to 960 in December 2023. The condo market has been more impacted by lack of inventory at key price points and elevated mortgage rates.

Miami total new listings increased 8.9% year-over-year in December 2023, from 2,330 to 2,538. 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 7.66% while Miami condo new listings jumped 9.59% year-over-year.

Total inventory is down 43.6% from the historical average for Miami. The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 11,445. Total active listings at the end of December increased 6.9% year-over-year, from 10,706 to 11,445.

Inventory of single-family homes decreased 7.12% year-over-year in December 2023 from 4,043 active listings last year to 3,755 last month. Condominium inventory increased 15.41% year-over-year from 6,663 to 7,690 listings during the same period in 2022.

Months' supply of inventory for single-family homes is 4.3 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 December was 1 million units, down 11.5% from November but up 4.2% from one year ago (960,000). Unsold inventory sits at a 3.2-month supply at the current sales pace, down from 3.5 months in November but up from 2.9 months in December 2022.

Miami-Dade County single-family home median prices increased 14.9% year-over-year in December 2023, increasing from $530,900 to $610,000. Miami single-family median prices have risen for 145 consecutive months (+12 years), the longest running-streak on record. Existing condo median prices increased 9.48% year-over-year from $374,500 to $410,000. Condo median prices have stayed even or increased in 145 of the last 151 months.

Miami total dollar volume totaled $1.3 billion in December 2023. Single-family home dollar volume increased 14.32% year-over-year to $683 million. Condo dollar volume decreased 5.21% year-over-year to $616 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 1.2% in December 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.2% and 0.8% year-over-year, respectively, of total Miami sales in December 2023.

Miami's percentage of distressed sales was lower than the national figure. Nationally, distressed sales represented 2% of sales in December 2023, virtually unchanged from last month and the prior year.

The median percent of original list price received for single-family homes was 96.1% in December 2023. The median percent of original list price received for existing condominiums was 95.7%.

The median number of days between listing and contract dates for Miami single-family home sales was 28 days, down from 35 days last year. The median time to sale for single-family homes was 69 days, down from 77 days last year.

The median number of days between the listing date and contract date for condos was 37 days, up from 35 days. The median number of days to sale for condos was 76 days, up from 73 days.

Cash sales represented 39.7% of Miami closed sales in December 2023, compared to 42.4% in December 2022. About 29% 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 49.5% of all Miami existing condo sales and 27.3% of single-family transactions.

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