A global city with the second-largest financial hub in the country, Miami continues to draw increased demand from international and domestic home buyers.
(PRWEB) August 20, 2015
The Miami real estate market continued its historic summer by registering its second-highest single-family home sales month in history in July, according to a new report by the 38,000-member MIAMI Association of REALTORS® (MIAMI) and Multiple Listing Service (MLS) system. Miami-Dade County had 1,354 single-family home sales in July 2015, nearly eclipsing its record of 1,390 transactions established last month.
Miami single-family home transactions surged 10.2 percent year-over-year in July 2015, from 1,229 to 1,354. Existing condominium sales increased 4.8 percent, from 1,403 to 1,471, which is noteworthy considering the continued rise of Miami pre-construction condo sales.
“A global city with the second-largest financial hub in the country, Miami continues to draw increased demand from international and domestic home buyers,” said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of MIAMI. “South Florida’s improving job market and historic low mortgage rates are encouraging more end-users to buy property here.”
The interest rate for a 30-year fixed-rate mortgage averaged 4.05 percent in July 2015, down from the 4.13 percent average recorded during the same month a year earlier, according to Freddie Mac.
Miami Residential Real Estate Sales Rise
Total existing Miami-Dade County residential sales, including single-family and condo markets, rose 7.3 percent to 2,825 last month compared to 2,632 a year ago.
Despite the rise in sales, access to mortgage loans for existing condominium buyers remains limited. The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening. Of the 8,523 condominium buildings in Miami-Dade and Broward Counties, only 29 are approved for FHA loans, according to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA. Just .0034 percent of local condo buildings are approved for FHA loans. The U.S. average is 30 percent.
“South Florida’s percentage of FHA-approved condo buildings remains significantly below the national average,” said Danielle Blake, MIAMI’s Senior Vice President of Government Affairs & Housing. “The MIAMI Association of REALTORS has created several new initiatives so more prospective local home buyers have an opportunity at FHA loans.”
Median Prices Register Growth
Single-family home prices, which again increased in July, remain at 2004 levels despite four years of consistent year-over-year increases. Condo prices also increased in July 2015, marking 49 months of growth in the last 50 months. The median sales price for single-family homes rose 8.6 percent, up to $278,000 in July 2015 from $255,950 in July 2014. The median sales price for condominiums increased 2.6 percent in July to $195,000 from $190,000 a year ago.
Despite the increase in median prices, Miami’s residential properties remain more affordable than other world-class global cities, according to the National Association of Realtors 2015 Profile of Home Buying Activity of International Clients. NAR analyzed the cost of a 120-square meter condo in a number of foreign cities based on prices reported in the Global Property Guide and compared the prices against the median price of a condo in several major U.S. cities. A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to NAR. The price for the same condo in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million) were at least five times higher.
Miami Real Estate Continues Selling Close to List Price
Miami single-family homes and condominiums continue to sell close to asking price, reflecting strong consumer demand. The median number of days on the market for Miami single-family homes decreased 4.7 percent to 41 days in July 2015 from 43 days in July 2014. The average percent of original list price received was 95.6 percent, an increase of 0.4 percent from a year earlier.
The median number of days on the market for condominiums sold in July 2015 was 59 days, the same number recorded in July 2014. The average percent of original list price received was 93.8 percent, a 0.3 percent year-over-year increase.
National and State statistics
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 2 percent to a seasonally adjusted annual rate of 5.59 million in July from a downwardly revised 5.48 million in June, according to the National Association of Realtors (NAR). Sales have now increased year-over-year for ten consecutive months and are 10.3 percent above a year ago (5.07 million).
Statewide, closed sales of existing single-family homes statewide totaled 26,916 last month, up 21.8 percent over July 2014, according to Florida Realtors. Florida’s condominium sales jumped to a total of 10,235 transactions, up 13.9 percent compared to July 2014.
The national median existing-home price for all housing types in July was $234,000, which is 5.6 percent above July 2014. July's price increase marks the 41st consecutive month of year-over-year gains.
The statewide median sales price for single-family existing homes last month was $199,900, up 8.1 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in July was $150,000, up 9.1 percent over the year-ago figure
Miami’s Cash Buyers Represent More than Twice the National Average
Cash deals represented 48.2 percent of Miami’s total closed sales in July 2015. That is more than double the national average as just 23 percent of all U.S. housing sales were made in cash in July, according to NAR. Cash transactions represented 54.4 percent of total Miami deals in July 2014. Miami’s high percentage of cash sales continues to reflect South Florida’s historic ability to attract international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 62.1 percent of condo closings were made in cash in July compared to 33.1 percent of single-family home sales.
Distressed Property Transactions Decline in Miami
Distressed property transactions again declined in Miami. Only 26.1 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 31.5 percent in July 2014.
Short sales and REOs accounted for 5.1 percent and 21.0 percent, respectively, of total Miami sales in June. Short sale transactions decreased 31.8 percent year-over-year while REOs decreased 4.1 percent. Nationally, distressed sales were 7 percent of sales in July, down from 9 percent a year ago.
Active Condo Listings on the Rise
Seller confidence continues to result in more properties being listed in Miami. Active listings at the end of July increased 3.8 percent year-over-year, from 17,167 to 17,820. Active listings remain about 60 percent below 2008 levels when sales bottomed. Inventory of single-family homes decreased 4.7 percent from 6,181 active listings last year to 5,890 last month. Condominium inventory increased 8.6 percent to 11,930 from 10,986 listings during the same period in 2014.
At the current sales pace, there is a 5-month supply of Miami single-family homes, a decrease of 11 percent from 5.6 months in July 2014. There is an 8.8-month supply of condominium inventory, up from 7.8 months in July 2014, an increase of 12.1 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of Miami single-family homes increased 1.8 percent from 2,076 in July of last year to 2,114 last month. New listings of condominiums decreased 0.3 percent to 2,729 last month, compared to 2,738 during the same time period in 2014.
Nationally, total housing inventory at the end of July declined 0.4 percent to 2.24 million existing homes available for sale, and is now 4.7 percent lower than a year ago (2.35 million). Unsold inventory is at a 4.8-month supply at the current sales pace, down from 4.9 months in June.
Access July 2015 Miami-Dade Statistical Reports: SFMarketIntel.com
Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of REALTORS®
The MIAMI Association of REALTORS® was chartered by the National Association of Realtors in 1920 and is celebrating 95 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of five organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, the YPN Council and the award-winning International Council, it represents more than 38,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S., and has official partnerships with more than 125 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.