Greater Miami Area Residential Sales Implode 41 Percent Annually in November

Greater Miami Area Residential Sales Implode 41 Percent Annually in November

Residential News » Miami Edition | By Michael Gerrity | December 26, 2022 8:56 AM ET

According to the Miami Association of Realtors, greater Miami Dade county area residential sales decreased 40.7% year-over-year from 3,021 sales transactions last November 2021 to 1,791 sales in November 2022.

Miami area single-family home sales decreased 38.5% year-over-year, from 1,168 in record-breaking November 2021 to 718 in November 2022. Miami area existing condo sales decreased 42.1% year-over-year, from 1,853 record-breaking November 2021 to 1,073 in November 2022.

While overall inventory is on the rise, most of the growth in listings is at the top end or luxury segment of the market. Miami single-family inventory in the $400K to $600K price range, for example, is at 2.7 months of supply, well below a balanced market (6 months).

Miami-Dade County single-family home median prices increased 9.4% year-over-year in November 2022, increasing from $502,750 to $550,000. Miami single-family median prices have risen for 132 consecutive months (11 years), the longest running-streak on record. Existing condo median prices increased 14.2% year-over-year, from $346,000 to $395,000. Condo median prices have increased in 133 of the last 138 months.

Miami Total Active Listings Rise for Second Consecutive Month

Total active listings at the end of November 2022 increased 11.9% year-over-year, from 9,984 to 11,178.

Inventory of single-family homes increased 52.9% year-over-year in November 2022 from 2,805 active listings last year to 4,288 last month. Condominium inventory decreased 4% year-over-year to 6,890 from 7,179 listings during the same period in 2021.

New listings of Miami single-family homes decreased 13.8% to 1,236 from 1,434. New listings of condominiums decreased 17.8%, from 2,111 to 1,735.

Months' supply of inventory for single-family homes increased 90.5% to 4 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 8.1% to 4 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Miami Distressed Sales Remain Low, Reflecting Healthy Market

Only 1.7% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 0.8% in November 2021. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.1% and 1.6% year-over-year, respectively, of total Miami sales in November 2022.

Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 2% of sales in November, identical to November 2021.

Miami's Percentage of Sales Continue to Outpace the Nation, State

In Florida, closed sales of single-family homes statewide totaled 17,009 in November 2022, down 38.2% year-over-year, while existing condo-townhouse sales totaled 7,084, down 38.9%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Nationally, total existing-home sales transactions waned 7.7% from October to a seasonally adjusted annual rate of 4.09 million in November. Year-over-year, sales dwindled by 35.4% (down from 6.33 million in November 2021).

The statewide median sales price for single-family existing homes was $400,000, up 9.6% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month's statewide median price for condo-townhouse units was $307,000, up 12.3% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Nationally, the median existing-home price for all housing types in November was $370,700, an increase of 3.5% from November 2021 ($358,200), as prices rose in all regions. This marks 129 consecutive months of year-over-year increases, the longest-running streak on record.

Miami Real Estate Attracting Near List Price

The median percent of original list price received for single-family homes was 95.3% in November 2022, down 3.2% from 98.4% last year. The median percent of original list price received for existing condominiums was 96.3%, down 0.8% from 97.1% last year.

The median number of days between listing and contract dates for Miami single-family home sales was 31 days, up from 20 days last year. The median time to sale for single-family homes was 74 days, a 12.1% increase from 66 days last year.

The median number of days between the listing date and contract date for condos was 35 days, down 2.8% from 36 days. The median number of days to sale for condos was 74 days, a 7.5% decrease from 80 days.

Miami Cash Sales 62.7% More than National Figure in November 2022

Cash sales represented 42.3% of Miami closed sales in November 2022, compared to 38.4% in November 2021. About 26% 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 53.9% of all Miami existing condo sales and 24.8% of single-family transactions.

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