Miami Area Residential Sales Dive 47 Percent Annually in January

Miami Area Residential Sales Dive 47 Percent Annually in January

Residential News » United States Edition | By Michael Gerrity | February 22, 2023 9:00 AM ET

According to the Miami Association of Realtors, Miami-Dade County total residential sales decreased 46.9% year-over-year, from 2,645 in January 2022 to 1,402 in January 2023.

Single-family home sales decreased 41.2% year-over-year, from 1,008 in January 2022 to 593 in January 2023 because of its comparison to a historic January 2022 and the current market has lower inventory in specific price points and higher rates. Miami existing condo sales decreased 50.6% year-over-year, from 1,637 in January 2022 to 809 in January 2023, due to lack of inventory and rising mortgage rates.

Yet, Miami-Dade County total pending sales rose 35.5% month over month, from 1,688 in December 2022 to 2,288 in January 2023. It is the first month-over-month rise of total pending sales since August 2022.

"While homebuyers continue to be challenged by rising mortgage rates, it's important to note that South Florida is still in a seller's market," Miami Realtors Chief Economist Gay Cororaton said. "Homes are in short supply as the area continues to see stronger job growth than nationally and sustained migration, especially from retirees and relocating workers and companies. Homebuyers should take into consideration that home prices are more likely to keep rising than to decline given the shortage of homes on the market and the decline in new home construction."

Miami-Dade County single-family home median prices increased 4.8% year-over-year in January 2023, increasing from $520,000 to $545,000. Miami single-family median prices have risen for 134 consecutive months (11+ years), the longest running-streak on record. Existing condo median prices increased 11.1% year-over-year, from $360,000 to $400,000. Condo median prices have increased in 135 of the last 140 months.

Total active listings at the end of January 2023 increased 30.1% year-over-year, from 8,275 to 10,769. Inventory of single-family homes increased 67.5% year-over-year in January 2023 from 2,367 active listings last year to 3,964 last month. Condominium inventory increased 15.2% year-over-year to 6,805 from 5,908 listings during the same period in 2022.

New listings of Miami single-family homes decreased 6.8% to 1,306 from 1,401 year-over-year. New listings of condominiums decreased 19.6%, from 2,410 to 1,938 year-over-year. New listings for all Miami properties are up 39.8% month over month in January 2023.

Miami's monthly supply of inventory for single-family homes increased 122.2% to 4 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 51.7% to 4.4 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Only 1.8% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.2% in January 2022. In 2009, distressed sales comprised 70% of Miami sales.

Short sales and REOs accounted for 0.5% and 1.3% year-over-year, respectively, of total Miami sales in January 2023.

Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented approximately 1% of sales in January, identical to one year ago.

Cash sales represented 43.2% of Miami closed sales in January 2023, compared to 40.1% in January 2022. About 29% of U.S. home sales are made in cash, according to the latest NAR statistics.

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