High demand for Miami single-family homes continues to put upward pressure on prices
Miami, FL (PRWEB) May 15, 2017
Strong consumer confidence and underlying demand vaulted Miami real estate to a robust first quarter as single-family home transactions, median sale prices and total dollar volume increased, according to a new report by the 46,000-member MIAMI Association of REALTORS® (MIAMI) and the local Multiple Listing Service systems.
Miami single-family home sales expanded 1.5 percent, increasing from 2,968 transactions in 1Q 2016 to 3,014. Existing condominiums sales — which are competing with a strong new construction market— decreased 5.1 percent, from 3,326 to 3,155. Median sale prices increased for the 21st consecutive quarter, rising 15.8 percent for single-family homes to $318,375 and 6.6 percent to $220,000 for condos. Miami properties have seen more than five years of price appreciation.
“High demand for Miami single-family homes continues to put upward pressure on prices,” said Christopher Zoller, the 2017 MIAMI Chairman of the Board and a Coral Gables Realtor. “As a seller, it’s a good time to list your home. As a buyer, current mortgage rates make buying a home more affordable.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.17 percent for 1Q 2017, higher than the 3.74 percent average recorded during the same quarter a year earlier.
Miami Neighborhoods See Strong Home Sale Growth
Eight Miami-Dade County municipalities or census-designated places posted single-family home sale increases in 1Q 2017, according to an analysis of neighborhoods with at least 40 transactions. Four of the eight are in south Miami-Dade County:
● Sales in Miami Shores, which is just north of the City of Miami on Biscayne Bay, increased 50 percent in 1Q 2017 to 48 transactions.
● Sales in Kendale Lakes, a census-designated place west of Kendall, rose 37.5 percent to 44 transactions.
● Sales in Doral, a north Miami-Dade city one mile north of Miami International Airport, expanded by 27 percent in 1Q 2017.
● Sales in Palmetto Bay, a south Miami-Dade County village, increased 18.6 percent to 70 transactions.
● Sales in Pinecrest, a south Miami-Dade County village that borders Coral Gables, rose 16.7 percent to 49 transactions.
● Sales in South Miami Heights, a census-designated place west of Cutler Bay in south Miami-Dade, expanded 9.5 percent to 46 transactions.
● Sales in the city of Miami rose 1.6 percent to 247 transactions.
● Sales in the city of Miami Beach increased 1.8 percent to 56 transactions.
In the existing condos market, three Miami neighborhoods posted year-over-year sale increases (40 minimum transactions) in 1Q 2017:
● Sales in Ives Estates, which is in north Miami-Dade County and hugs the Broward County line, increased 38.6 percent to 61 sales
● Sales in North Bay Village, which borders Miami Beach, increased 2.5 percent to 41 transactions.
● Sales in North Miami Beach increased 24.4 percent to 56 transactions
Total Sales Decline but Remain in Line with Historical Averages
Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — decreased 2.0 percent year-over-year in 1Q 2017 from 6,294 to 6,169.
Total sales volume accounted for $2.7 billion in 1Q 2017, a 3.8 percent increase from the $2.6 billion sales volume a year ago. The sales do not include Miami’s multi-billion dollar new construction condo market.
Total Miami distressed sales have declined 44.3 percent year-over-year, from 1,356 transactions in 1Q 2016 to 755 in 1Q 2017. Only 12.2 percent of all closed residential sales in Miami were distressed in 1Q 2017, including REO (bank-owned properties) and short sales, compared to 21.5 percent in 1Q 2016. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 2.8 and 9.5 percent, respectively, of total Miami sales in 1Q 2017. Short sale transactions dropped 38.2 percent year-over-year while REOs fell 45.9 percent.
Miami Median Prices for Single-Family Homes, Condos Climb in 1Q
The median price for single-family homes in Miami-Dade County increased to $318,375 in the first quarter, a 15.8 percent jump from $275,000 in the same period last year. The median price for existing condominiums increased 6.6 percent year-over-year from $206,450 to $220,000.
Nationally, the median existing single-family home price in the first quarter was $232,100, which is up 6.9 percent from the first quarter of 2016 ($217,200) and the fastest growth since the second quarter of 2015 (8.2 percent), according to NAR.
Statewide, the median sales price for single-family existing homes in 1Q 2017 was $226,000, up 10.7 percent from the same time a year ago, according to Florida Realtors. The Florida median price for condos during the quarter was $167,000, up 9.2 percent over the year-ago figure.
National, State Residential Sales in 1Q 2017
Nationally, total existing-home sales for single-family and condominiums climbed 1.4 percent to a seasonally adjusted annual rate of 5.62 million in the first quarter (highest since first quarter of 2007 at 5.66 million) from 5.55 million in the fourth quarter of 2016, and are 5.0 percent higher than the 5.36 million pace during the first quarter of 2016, according to the National Association of REALTORS®.
Statewide, closed sales of existing single-family homes totaled 60,733 in 1Q 2017, up 5.1 percent over the 1Q 2016 figure, according to Florida Realtors. Florida’s townhome-condo market totaled 26,351 during 1Q 2017, up 7.6 percent compared to 1Q 2016.
Seller’s Market for Single-Family Homes, Buyer’s Market for Condos
At the current sales pace, the number of active listings represents 5.8 months of inventory for single-family homes and 13.8 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory. Low months supply for condos and single-family homes is impacting sales.
Miami real estate had 21,771 active listings in the first quarter, a 6.5 percent increase from the 20,446 listings at the same time last year. The inventory for single-family homes decreased 2.1 percent, from 6,494 to 6,355. Miami existing condo inventory grew 10.5 percent, from 13,952 to 15,416.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95 percent for single-family homes and 93.3 percent for condos in 1Q 2017.
The median time to contract for single-family home listings was 58 days, a 1.7 percent decrease from 59 days in 1Q 2016. The median time to contract for existing condos was 83 days, a 15.3 percent increase from 72 days in 1Q 2016.
The median time to sale for single-family homes decreased 6.0 percent, from 117 days to 110. The median time to sale for existing condos increased 5.8 percent, from 120 days to 127.
Miami Cash Sales Almost Double National Figure
Cash sales represented 44.8 percent of Miami closed sales in the first quarter of 2016. About 23 percent of U.S. home properties are made in cash, according to the latest NAR statistics. 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.
Cash sales accounted for 60.0 percent of all Miami existing condo sales and 28.9 percent of single-family transactions.
1Q 2017 Miami-Dade Statistical Reports — visit 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-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 46,000 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 161 international organizations worldwide. MIAMI’s official website is http://www.miamire.com