“Low mortgage rates and new tax laws continued fueling Miami real estate in April"
MIAMI (PRWEB) May 21, 2019
Miami-Dade County existing single-family home sales and total transactions increased year-over-year in April, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami single-family home transactions increased 3.9 percent, from 1,217 to 1,265. Total sales for all properties increased 1.1 percent, from 2,601 to 2,629.
“Low mortgage rates and new tax laws continued fueling Miami real estate in April,” MIAMI Chairman of the Board José María Serrano said. “The new Tax Cuts and Jobs Act reduced certain deductions that homeowners in high-tax states could claim, which is encouraging more residents of states like New York to move to states with no state income tax like Florida.”
Total Miami Home Sales Rise in April
Total Miami-Dade County Home Sales rose 1.1 percent year-over-year, from 2,601 to 2,629. Miami single-family home transactions increased 3.9 percent, from 1,217 to 1,265. Miami existing condo sales decreased 1.4 percent, from 1,384 to 1,364.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.14% in April from 4.27% in March. The average commitment rate across all of 2018 was 4.54%.
Total sales volume increased to $1.23 billion last month from $1.19 billion in April 2018. Single-family home dollar volume increased 6 percent from $633.3 million to $671 million. Condo dollar volume decreased 1.3 percent from $565.4 million to $557.8 million.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. 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 Florida Department of Business and Professional Regulation and FHA.
7.25 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 3.2 percent in April 2019, increasing from $345,000 to $356,000. Miami single-family home prices have risen for 89 consecutive months, a streak of 7.42 years. Existing condo prices increased 2.8 percent, from $241,325 to $248,000. Condo prices have increased or stayed even in 92 of the last 95 months.
Miami Distressed Sales Stay Low, Reflecting Healthy Market
Only 6.1 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.2 percent in April 2018. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales stayed even year-over-year at 160.
Short sales and REOs accounted for 1.3 and 4.8 percent, respectively, of total Miami sales in April 2019. Short sale transactions decreased 20.9 percent year-over-year while REOs increased 7.7 percent.
Nationally, distressed sales represented 3% of sales in April, equal to the 3% in March and down from 4% in April 2018. One percent of April 2019 sales were short sales.
Miami Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Miami single-family home sales was 58 days, a 28.9 percent increase from 45 days last year. The median number of days between the listing date and closing date for single-family homes was 101 days, a 12.2 percent increase from 90 days.
The median time to contract for condos was 74 days, a 6.3 percent decrease from 79 days last year. The median number of days between listing date and closing date decreased 4.2 percent to 115 days.
The median percent of original list price received for single-family homes was 95.5 percent. The median percent of original list price received for existing condominiums was 93.4 percent.
National and State Statistics
Nationally, total existing-home sales fell 0.4% from March to a seasonally adjusted annual rate of 5.19 million in April. Total sales are down 4.4% from a year ago (5.43 million in April 2018).
Statewide closed sales of existing single-family homes totaled 26,992 last month, up 6.2% over April 2018, according to Florida Realtors. Looking at Florida’s condo-townhouse market in x, statewide closed sales totaled 11,817, up 3.2% compared to a year ago.
The national median existing-home price for all housing types in April was $267,300, up 3.6% from April 2018 ($257,900). April’s price increase marks the 86th straight month of year-over-year gains.
In April, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 88th consecutive month. The statewide median sales price for single-family existing homes was $259,470, up 2.6% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $194,050, up 2.1% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Miami’s Cash Buyers Represent Almost Double the National Figure
Miami cash transactions comprised 34.8 percent of April 2019 total closed sales, compared to 38.9 percent last year. Miami cash transactions are almost double the national figure (20 percent).
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 48.8 percent of condo closings were made in cash in March compared to 19.8 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes increased 9.9 percent in April from 6,309 active listings last year to 6,935 last month. Condominium inventory increased 1.9 percent to 16,049 from 15,744 listings during the same period in 2018.
The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single family homes.
Months supply of inventory for single-family homes increased 8.3 percent to 6.5 months, which indicates a balanced market. Existing condominiums have a 13.9-month supply, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of April increased 4.2 percent year-over-year, from 22,053 to 22,984. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes increased 2.4 percent to 1,909 from 1,865. New listings of condominiums decreased 2.8 percent, from 2,363 to 2,297.
Nationally, total housing inventory at the end of April increased to 1.83 million, up from 1.67 million existing homes available for sale in March and a 1.7% increase from 1.80 million a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, up from 3.8 months in March and up from 4.0 months in April 2018.
To access April 2019 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 99 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-MIAMI Association of Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 47,000 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 212 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com