Greater Miami Residential Sales Down 9 Percent Annually in September

Greater Miami Residential Sales Down 9 Percent Annually in September

Residential News » Miami Edition | By Michael Gerrity | October 23, 2023 9:31 AM ET

High mortgage rates continue to impact Miami's housing market

According to Miami Association of Realtors September 2023 statistics, total Miami-Dade Florida residential sales decreased 8.9% in September 2023, from 2,178 to 1,984 transactions. The statistics don't include South Florida's developer new construction market and volume.

Miami's single-family home sales actually increased 2.9% year-over-year, from 869 in September 2022 to 894 in September 2023. This marks the first-time Miami single-family home sales have increased year-over-year since January 2022.

Yet, Miami existing condo sales decreased 16.7% year-over-year, from 1,309 in September 2022 to 1,090 in September 2023. The condo market has been more impacted by lack of inventory at key price points and rising mortgage rates, which are at its highest in 23 years.

"The housing market is continuing to adjust to rising mortgage rates and is experiencing bifurcated growth," Miami Realtors' Chief Economist Gay Cororaton said. "Homes at over $600,000 are surging, bolstered by cash and equity-rich buyers, while sales of lower priced homes, usually mortgage-financed, are shrinking. Out of-state movers -- mainly from New York, California, or New Jersey--continue to move to Southeast Florida in numbers above the pre- pandemic level."

Miami's high-demand, low-supply market got some good news in September as new listings rose for the first-time year-over-year since August 2021.

Miami had 3,295 new listings in September 2023, a 2.7% increase from 3,209. 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 market had 1,367 new listings in September 2023, up 1.2% from 1,351. Miami condos had 1,928 new listings, up 3.8% from 1,858.

Mortgage rates are at their highest levels in 23 years. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.57% as of October 12. That's up from 7.49% the previous week and 6.92% one year ago.

The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 9,467. Total inventory is down 53.7% from pre-pandemic (September 2019), from 21,586 to 10,003.

Total active listings at the end of September decreased 2.9% year-over-year, from 10,311 to 10,003.

Inventory of single-family homes decreased 15.2% year-over-year in September 2023 from 3,912 active listings last year to 3,318 last month. Condominium inventory increased 4.5% year-over-year from 6,399 to 6,685 listings during the same period in 2022.

Months' supply of inventory for single-family homes is 3.8 months, which indicates a seller's market. Inventory for existing condominiums is 5.8 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Miami-Dade County single-family home median prices increased 5.6% year-over-year in September 2023, increasing from $568,000 to $600,000. Miami single-family median prices have risen for 142 consecutive months (11.8 years), the longest running-streak on record. Existing condo median prices increased 5.1% year-over-year from $395,000 to $415,000. Condo median prices have stayed even or increased in 142 of the last 148 months.

Miami total dollar volume totaled $1.67 billion in September 2023. Single-family home dollar volume increased 29.4% year-over-year to $983 million. Condo dollar volume decreased 17.79% year-over-year to $684 million.

Only 1.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.3% in September 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.4% and 0.9% year-over-year, respectively, of total Miami sales in September 2023.

Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in September 2023, virtually unchanged from last month and the prior year.

The median percent of original list price received for single-family homes was 98% in September 2023. The median percent of original list price received for existing condominiums was 96.6%.

The median number of days between listing and contract dates for Miami single-family home sales was 21 days, down from 24 days last year. The median time to sale for single-family homes was 64 days, down from 68 days last year.

The median number of days between the listing date and contract date for condos was 30 days, up from 28 days. The median number of days to sale for condos was 72 days, up from 71 days.

Cash sales represented 41.2% of Miami closed sales in September 2023, compared to 39.5% in September 2022. About 29% of U.S. home sales are made in cash, according to the latest NAR statistics.

Cash sales accounted for 52.5% of all Miami existing condo sales and 27.4% of single-family transactions.

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