Miami-Dade single-family pending sales and total South Florida showing appointments rose year-over-year, according to June 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
MIAMI, July 20, 2023 /PRNewswire-PRWeb/ -- Miami-Dade single-family pending sales and total South Florida showing appointments rose year-over-year, according to June 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade single-family pending sales rose for the first time since November 2021, increasing from 1,057 to 1,064 transactions. While a nominal change, it's noteworthy as it is the first-time pending sales are positive year-over-year in 19 months and pending sales are an indicator of future sales. South Florida showing appointments, meanwhile, increased 7% year-over-year, from 218,973 to 233,675. It is the second consecutive month showing appointments have risen.
"Buyers are adjusting to the new norm of 6-7% interest rates, but Miami-Dade's supply remains historically low, constraining sales in this high-demand market," MIAMI Chairman Ines Hegedus Garcia said. "We are keeping a close track of new listings to capitalize on the immense potential of Miami's thriving market, where a surge in supply would naturally result in increased sales."
Miami-Dade Single-Family Pending Sales Rise for First Time Since November 2021
Comparing today's home sales numbers to the roaring 2021-22 era, when mortgage rates hit a level likely not to be seen again at 3% or 4% and there was a pandemic-fueled housing boom throughout the country, is difficult.
Miami total home sales decreased 18.2% year-over-year in June 2023, from a historic 2,891 transactions in June 2022 to 2,364 in June 2023, because of elevated mortgage rates and lack of supply in certain price points.
Most of the homes purchased in June 2023 came to terms in May when mortgage rates peaked at 7.14%. Rates, in comparison, were at 5.27% on May 5, 2022.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of July 13. That's up from 6.81% the previous week and 5.51% one year ago.
"Buyers seem to be adjusting more quickly to the reality of higher mortgage payments than sellers, making that home purchase if it is affordable," MIAMI REALTORS® Chief Economist Gay Cororaton said. "Buyers continue to compete for the limited supply, so we're seeing a market with prices still buoyed up by demand, modest price discounts, and properties still typically getting sold within a month."
Miami single-family home sales decreased 11.9% year-over-year, from 1,139 in June 2022 to 1,004 in June 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.
Miami existing condo sales decreased 22.4% year-over-year, from a historic 1,752 in June 2022 to 1,360 in June 2023, due to lack of inventory and rising mortgage rates.
Miami Home Prices, Household Income Rise with Wealth Migration
Miami-Dade County single-family home median prices increased 7.5% year-over-year in June 2023, increasing from $579,000 to $622,500. Miami single-family median prices have risen for 139 consecutive months (11.6 years), the longest running-streak on record. Existing condo median prices increased 2% year-over-year to $418,000 from $410,000. Condo median prices have stayed even or increased in 139 of the last 145 months.
Miami leads the nation in annual home price appreciation, according to CoreLogic's monthly Home Price Insights report. Miami home prices increased 11.8% on an annual basis in May.
Local prices have risen with South Florida's wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
About 45,430 people moved into Miami-Dade in 2021, up 15% from the level in 2020 (39,562) and up 20% from the level in 2019 (37,630). Top households that moved into Miami-Dade included Kings County, New York; Cook County, Illinois; Queens County, New York; and Harris County, Texas.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Miami single-family homes (3.3 months) and condos (5 months) are low. Also, one of the supports for home prices is rents and rents are up.
Miami-Dade Inventory, New Listings Still Near All-Time Lows
While inventory is rising, Miami-Dade inventory is still near all-time lows. The monthly historical average for Miami-Dade inventory is 20,302 and current inventory is at 9,027. Total inventory is down 57.9% from pre-pandemic (June 2019), from 22,163 to 9,331.
Total active listings at the end of June decreased 2.3% year-over-year, from 9,239 to 9,027.
Inventory of single-family homes decreased 14.9% year-over-year in June 2023 from 3,422 active listings last year to 2,911 last month. Condominium inventory increased 5.1% year-over-year to 6,116 from 5,817 listings during the same period in 2022.
New listings of Miami single-family homes decreased 36% to 1,241 from 1,939 year-over-year. New listings of condominiums decreased 32.6%, from 2,638 to 2,132 year-over-year.
Months' supply of inventory for single-family homes increased 17.9% to 3.3 months year-over-year, which indicates a seller's market. Inventory for existing condominiums increased 72.4% to 5 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory the end of June was 1.08 million units, identical to May but down 13.6% from one year ago (1.25 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, up from 3.0 months in May and 2.9 months in June 2022.
Miami Real Estate Posts $288.4 Million Local Economic Impact in June 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $122,000, according to NAR. Miami-Dade sold 2,364 homes in June 2023 and had a local economic impact of $288.4 million.
Miami total dollar volume totaled $1.98 billion in June 2023. Single-family home dollar volume decreased 13.66% year-over-year to $1 billion. Condo dollar volume decreased 25.3% year-over-year to $941.7 million.
Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 1.4% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.9% in June 2022. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.3% and 0.5% year-over-year, respectively, of total Miami sales in June 2023.
Miami's percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 2% of sales in June, virtually unchanged from last month and the prior year.
Miami Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 26,071 in June 2023, down 7.9% year-over-year, while existing condo-townhouse sales totaled 10,494, down 11%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions receded 3.3% from May to a seasonally adjusted annual rate of 4.16 million in June. Year-over-year, sales fell 18.9% (down from 5.13 million in June 2022).
The statewide median sales price for single-family existing homes was $420,000, even 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 $325,000, even over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for housing types in June was $410,200, the second-highest price of all time and down 0.9% from the record-high of $413,800 in June 2022. The monthly median price surpassed $400,000 for the third time, joining June 2022 and May 2022 ($408,600). Prices rose in the Northeast and Midwest but waned in the South and West.
Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 97.3% in June 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 96.2%, down from 99.8% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 27 days, up from 15 days last year. The median time to sale for single-family homes was 71 days, up from 60 days last year.
The median number of days between the listing date and contract date for condos was 32 days, up from 22 days. The median number of days to sale for condos was 77 days, down from 67 days.
Miami Cash Sales 67.3% More than National Figure
Cash sales represented 43.5% of Miami closed sales in June 2023, compared to 43.9% in June 2022. About 26% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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 as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.
Cash sales accounted for 55.9% of all Miami existing condo sales and 26.6% of single-family transactions.
To access June 2023 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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 total 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 255 international organizations worldwide. MIAMI's official website is http://www.MiamiRealtors.com
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Media Contact
Chris Umpierre, MIAMI Association of Realtors, 3054687047, [email protected]
SOURCE MIAMI Association of Realtors
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