Greater Miami Residential Sales Down 18 Percent Annually in June

Greater Miami Residential Sales Down 18 Percent Annually in June

Residential News » Miami Edition | By Michael Gerrity | July 31, 2023 8:10 AM ET

Based on new data by the Miami Association of Realtors, greater Miami total home sales decreased 18.2% year-over-year in June 2023, from a historic 2,891 transactions in June 2022 to 2,364 in June 2023, because of elevated mortgage rates and lack of supply in certain price points.

Miami single-family home sales decreased 11.9% year-over-year, from 1,139 in June 2022 to 1,004 in June 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.

Most of the homes purchased in June 2023 came to terms in May when mortgage rates peaked at 7.14%. Rates, in comparison, were at 5.27% on May 5, 2022.

Miami existing condo sales decreased 22.4% year-over-year, from a historic 1,752 in June 2022 to 1,360 in June 2023, due to lack of inventory and rising mortgage rates.

Miami-Dade single-family pending sales rose for the first time since November 2021, increasing from 1,057 to 1,064 transactions. While a nominal change, it's noteworthy as it is the first-time pending sales are positive year-over-year in 19 months and pending sales are an indicator of future sales. South Florida showing appointments, meanwhile, increased 7% year-over-year, from 218,973 to 233,675. It is the second consecutive month showing appointments have risen.

"Buyers are adjusting to the new norm of 6-7% interest rates, but Miami-Dade's supply remains historically low, constraining sales in this high-demand market," Miami Realtors Chairman Ines Hegedus Garcia said. "We are keeping a close track of new listings to capitalize on the immense potential of Miami's thriving market, where a surge in supply would naturally result in increased sales."

Miami-Dade County single-family home median prices increased 7.5% year-over-year in June 2023, increasing from $579,000 to $622,500. Miami single-family median prices have risen for 139 consecutive months (11.6 years), the longest running-streak on record. Existing condo median prices increased 2% year-over-year to $418,000 from $410,000. Condo median prices have stayed even or increased in 139 of the last 145 months.

Miami leads the nation in annual home price appreciation, according to CoreLogic's monthly Home Price Insights report. Miami home prices increased 11.8% on an annual basis in May.

Local prices have risen with South Florida's wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to Miami Realtors' analysis of the 2020-2021 migration data released by the Internal Revenue Service.

New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.

About 45,430 people moved into Miami-Dade in 2021, up 15% from the level in 2020 (39,562) and up 20% from the level in 2019 (37,630). Top households that moved into Miami-Dade included Kings County, New York; Cook County, Illinois; Queens County, New York; and Harris County, Texas.

Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Miami single-family homes (3.3 months) and condos (5 months) are low. Also, one of the supports for home prices is rents and rents are up.

While inventory is rising, Miami-Dade inventory is still near all-time lows. The monthly historical average for Miami-Dade inventory is 20,302 and current inventory is at 9,027. Total inventory is down 57.9% from pre-pandemic (June 2019), from 22,163 to 9,331.

Total active listings at the end of June decreased 2.3% year-over-year, from 9,239 to 9,027.

Inventory of single-family homes decreased 14.9% year-over-year in June 2023 from 3,422 active listings last year to 2,911 last month. Condominium inventory increased 5.1% year-over-year to 6,116 from 5,817 listings during the same period in 2022.

New listings of Miami single-family homes decreased 36% to 1,241 from 1,939 year-over-year. New listings of condominiums decreased 32.6%, from 2,638 to 2,132 year-over-year.

Months' supply of inventory for single-family homes increased 17.9% to 3.3 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 72.4% to 5 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Miami total dollar volume totaled $1.98 billion in June 2023. Single-family home dollar volume decreased 13.66% year-over-year to $1 billion. Condo dollar volume decreased 25.3% year-over-year to $941.7 million.

Only 1.4% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.9% in June 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.3% and 0.5% year-over-year, respectively, of total Miami sales in June 2023.

Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 2% of sales in June, virtually unchanged from last month and the prior year.

Cash sales represented 43.5% of Miami closed sales in June 2023, compared to 43.9% in June 2022. About 26% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash sales accounted for 55.9% of all Miami existing condo sales and 26.6% of single-family transactions.

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