Miami real estate is thriving as evidenced by the historic number of annual single-family home transactions the last three years
Miami, FL (PRWEB) February 09, 2017
The Miami single-family homes market finished 2016 with the third-most annual sales in county history as median prices for all properties rose at year-end and in 4Q 2016, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade County posted 13,164 single-family home sales in 2016, down 5.3 percent from last year. Only 2015 (13,898 single-family home transactions) and 2014 (13,521) had more annual Miami single-family home sales. MIAMI and the MLS have been tracking county sales since 1994.
“Miami real estate is thriving as evidenced by the historic number of annual single-family home transactions the last three years,” said Coral Gables Realtor Christopher Zoller, the 2017 MIAMI Chairman of the Board. “High demand, low inventory, steady job creation and historically low mortgage rates have fueled a strong Miami single-family homes market. Existing condos finished with the sixth-best sales year in history despite an increase in competing new condo construction.”
Existing Condominiums Post Sixth-Best Sales Year
Miami existing condominiums posted the sixth-best sales year in history despite competing with Miami’s multi-billion dollar new condo construction market. A total of 13,604 Miami existing condominiums were sold in 2016, down 14.4 percent from the previous year.
The lack of access to mortgage loans continues to impact existing condominium sales. Of the 9,307 condominium buildings in Miami-Dade and Broward Counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to statistics from the Florida Department of Business and Professional Regulation and FHA.
Miami Year-End Median Sales Prices Rise for All Properties
Miami existing single-family homes finished 2016 with a median sales price of $295,000, up 11.3 percent from $265,000 the previous year. The Miami median price for existing condominiums in 2016 was $212,500, an increase of 6.3 percent from $200,000 in 2015.
Miami Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2016 was 95.6 percent in 2016, an increase of 0.2 percent from a year earlier. The median number of days to contract for Miami single-family homes fell 10.7 percent to 50 days in 2016 from 56 days in 2015.
The median number of days to contract for condominiums sold in 2016 was 71 days, a 6.6 percent decrease from 76 days in 2015. The average percent of original list price received was 93.9 percent, a 0.3 percent year-over-year decrease.
State and National Year-End Statistics
Statewide closed sales of existing single-family homes totaled 268,731 in 2016, up 0.9 percent compared to the 2015 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes in 2016 was $219,900, up 12.2 percent from the previous year.
Statewide closed sales of townhouse-condos totaled 107,953 units sold statewide in 2016, down 4.2 percent from 2015. The statewide median price for condominiums in 2016 was $160,000, up 6.7 percent over the previous year
Nationally, total existing-home sales finished 2016 at 5.45 million sales and surpassed 2015 (5.25 million) as the highest since 2006 (6.48 million).
Historic-low mortgages rates are encouraging home buying. The interest rate for a 30-year fixed-rate mortgage averaged 3.65 percent for 2016, down from the previous year’s average of 3.85 percent, according to Freddie Mac.
Miami’s Cash Buyers Represent More than Double the National Figure
In 2016, cash deals represented 45.7 percent of Miami’s total closed sales, which is a decrease from 51.8 percent in 2015. Just 21 percent of all U.S. housing sales are made in cash, according to NAR. Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 60.3 percent of condo closings were made in cash in 2016 compared to 30.6 percent of single-family home sales.
Distressed Property Transactions Decline in Miami
About 17.2 percent of all closed residential sales in Miami were distressed in 2016, including REO (bank-owned properties) and short sales, compared to 27.0 percent in 2015.
Short sales and REOs accounted for 3.5 and 12.2 percent, respectively, of total Miami sales in 2016. Short sale transactions dropped 43.2 percent year-over-year while REOs decreased 42.6 percent. Nationally, distressed sales fell to 8 percent of all sales in December, down from 8 percent a year ago.
Seller’s Market for Miami Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes increased 5.2 percent in 2016 from 5,909 active listings in 2015 to 6,218 in 2016. Condominium inventory increased 16.3 percent to 14,436 in 2016 from 12,408 listings in 2015. Despite countywide inventory increases, there are inventory shortages in certain price ranges and market segments.
At the end of 2016, inventory for Miami single-family homes stood at a 5.7-month supply, an 11.8 percent increase from 5.1 months in the previous year. Inventory for Miami existing condominiums at the end of 2016 stood at 12.7 months, a 35.1 percent increase from 9.4 months in 2015. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2016 increased 12.8 percent year-over-year, from 18,317 to 20,654. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes at year-end 2016 increased 1.3 percent from 20,480 to 20,745. New listings of condominiums stayed effectively even at 28,090.
Nationally, total housing inventory at the end of December dropped 10.8 percent to 1.65 million existing homes available for sale, which is the lowest level since NAR began tracking the supply of all housing types in 1999.
Local Residential Market Metrics Year-End 2016
Six Miami-Dade County municipalities or census-designated places finished 2016 with single-family home sale increases, according to an analysis of local residential neighborhoods with at least 50 transactions in 2016.
Fountainebleau, the City of Hialeah Gardens, Princeton, The Crossings, West Perrine and Westview posted year-over-year single-family home sales gains.
● Sales in Fountainebleau, which is located south of Doral, increased by 25.6 percent compared to 2015.
● Sales in Hialeah Gardens, which is located west of Hialeah, increased 33.3 percent.
● Sales in Princeton, which is located south of Cutler Bay in south Miami-Dade, increased 8.0 percent.
● Sales in The Crossings, which is located west of Kendall, increased 21.0 percent.
● Sales in West Perrine, which is located west of Palmetto Bay in south Miami-Dade, increased 24.3 percent.
● Sales in Westview, which is located south of Opa-locka in north Miami-Dade, increased 20.6 percent.
Miami closed sales of existing single-family homes totaled 3,094 in the fourth quarter of 2016, down 1.1 percent compared to the year-ago figure. Miami existing condo sales totaled 3,039 in the 4Q 2016, down 17.4 percent year-over-year.
Statewide closed sales of existing single-family homes totaled 62,192 in the fourth quarter of 2016, up 2.1 percent compared to the year-ago figure. Statewide existing condo sales totaled 24,394 in 4Q 2016, down 5 percent compared to the same period a year earlier
Nationally, total existing-home sales rose 3.3 percent to a seasonally adjusted annual rate of 5.57 million in the fourth quarter from 5.39 million in the third quarter of 2016, and are 7.1 percent higher than the 5.20 million pace during the fourth quarter of 2015.
Median sale prices for Miami single-family homes increased 14.1 percent, from $270,000 to $308,000, in 4Q 2016. Condo median prices increased 5.9 percent from $200,625 to $212,500.
Median sale prices for statewide single-family homes was $223,950, up 11.9 percent from 4Q 2015. Statewide condo median prices was $164,182, up 8.6 percent over the previous year.
The national median existing single-family home price in the fourth quarter of 2016 was $235,000, which is up 5.7 percent from the fourth quarter of 2015 ($222,300).
New listings of Miami single-family homes for sale in 4Q 2016 decreased 5.3 percent compared to the same quarter the previous year. New listings for existing condos in 4Q 2016 decreased 8.2 percent from 6,656 to 6,109.
New Construction Market Update
Most Miami preconstruction condo developers require a 50-percent cash deposit on new units. The deposit is not only one of the highest in the United States but is significantly higher than the 20 percent required during the last real estate cycle. The large cash deposits show how committed Miami’s preconstruction condo buyers are to the local market.
Sixty-four condo towers with 6,760 units have been completed in Miami-Dade County east of I-95 in the last five years since the start of 2011, according to a Jan. 23 report from preconstruction condo projects website Cranespotters.com and MIAMI.
To access Year-end 2016, 4Q 2016 and Local Residential Market Metrics Year-end 2016 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 97 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 nearly 45,000 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 160 international organizations worldwide. MIAMI’s official website is http://www.miamire.com