Continued price growth in Miami points to demand for local properties, particularly in the mid-market
Miami, FL (PRWEB) August 15, 2016
Prices for Miami residential properties rose for the 18th consecutive quarter, as tight inventory in the mid-price ranges continues to impact sales and drive up prices, according to the 42,000-member MIAMI Association of REALTORS® (MIAMI) and the local Multiple Listing Service systems.
The median price for single-family homes in Miami-Dade County increased to $295,000 in the second quarter, an 8.6 percent increase from $271,620 in the same period last year. The median price for existing condominiums increased 5.5 percent year-over-year from $203,850 to $215,000.
Prices in Miami-Dade County have increased consistently for nearly five years. Despite the steadfast growth, Miami prices remain at 2004 levels.
“Continued price growth in Miami points to demand for local properties, particularly in the mid-market,” said Mark Sadek, the 2016 MIAMI Chairman of the Board. “Due to our warm weather, exciting lifestyle, multicultural society and many other positive attributes, there will always be demand for Miami real estate from both domestic and international buyers.”
Miami’s residential properties remain more affordable than other global cities, according to the National Association of Realtors (NAR) 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. A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average. 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.
Nationally, the median existing single-family home price in the second quarter was $240,700, up 4.9 percent from the second quarter of 2015 ($229,400), according to NAR. The national median existing-condo price was $227,200 in the second quarter, up 4.8 percent from the second quarter of 2015 ($216,700).
Statewide, the median sales price for single-family existing homes in 2Q 2016 was $220,000, up 10 percent from the same time a year ago, according to Florida Realtors. The Florida median price for condos during the quarter was $163,000, up 5.2 percent over the year-ago figure.
Total Sales Consistent with Historical Transactions
Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — declined 9.7 percent year-over-year in the second quarter of 2016, from 8,294 sales to 7,493. Sales, which continue to increase for mid-market properties, are still consistent with strong historical sales periods.
Single-family home sales — which have posted three consecutive years of record sales — declined 7.0 percent in 2Q 2016, from 3,900 to 3,626. Existing condo sales fell 12.0 percent, from 4,394 to 3,867. Existing condos are competing with a robust new construction market, which continues to add inventory.
The $200,000 to $600,000 single-family home sector posted a 6.2 percent year-over-year sales increase in the second quarter of 2016. The sector, which comprised 64 percent of all Miami single-family closed sales last quarter, had 2,321 sales in 2Q 2016 versus 2,186 in 2Q 2015. In existing condos, the $150,000 to $300,000 price range registered a 6.0 percent sales increase, growing from 1,487 to 1,576. The sector comprised 38.5 percent of all existing condo closed sales last quarter.
National, State Residential Sales in 2Q
Nationally, total existing-home sales for single-family and condominiums rose 3.8 percent to a seasonally adjusted annual rate of 5.50 million in the second quarter from 5.30 million in the first quarter of 2016, and are 4.2 percent higher than the 5.28 million pace during the second quarter of 2015, according to the National Association of REALTORS®.
Statewide, closed sales of single-family homes statewide totaled 76,748 in 2Q 2016, up 1.4 percent over the 2Q 2015 figure, according to Florida Realtors. Florida’s townhome-condo market totaled 31,699 during 2Q 2016, down 2.7 percent compared to 2Q 2015.
Miami Total Active Listings Rise in 2Q
Seller confidence in Miami’s housing market continued to expand in the second quarter. Miami real estate had 20,446 active listings in the second quarter, a 16 percent increase from the 17,570 listings at the same time last year.
The inventory for single-family homes increased 10.7 percent, from 5,685 to 6,292. Miami existing condo inventory grew 18.6 percent, from 11,885 to 14,093.
The Miami single-family home sector is in a seller’s market, while existing condos are in a buyer’s market. At the current sales pace, the number of active listings represents 5.6 months of inventory for single-family homes and 11.3 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami Existing Homes, Condos Selling Faster
The median time to contract for single-family home listings was 47 days, a 16.1 percent decrease from 56 days in 2Q 2015. The median time to contract for existing condos was 66 days, a 9.6 percent decrease from 73 days in 2Q 2015.
The median number of days between the listing date and closing date also declined for all properties. The median time to sale for single-family homes decreased 10.9 percent, from 110 days to 98. The median time to sale for existing condos fell 6.7 percent, from 120 days to 112.
The median percent of original list price received was 95.6 percent for single-family homes and 94.1 percent for condos in 2Q 2016.
Miami Cash Sales Nearly Double National Average
Miami continues to register nearly double the U.S. average of residential cash buyers. Cash sales represented 46.8 percent of Miami closed sales in the second quarter of 2016. About 25 percent of U.S. home properties are made in cash, according to the latest NAR statistics.
Cash sales accounted for 61.1 percent of all Miami existing condo sales and 31.4 percent of single-family transactions. 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.
Mortgage interest rates are the lowest they have been in more than three years, making buying a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.59 percent for 2Q 2016, down significantly from the 3.96 percent average a year earlier.
2Q Miami-Dade Statistical Reports — visit http://www.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 96 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward Council, the Jupiter Tequesta Hobe Sound (JTHS) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents more than 42,000 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 136 international organizations worldwide. MIAMI’s official website is http://www.miamire.com