“Interest from high earners in tax burdened states and declining mortgage rates continue to drive demand in the South Florida real estate market."
MIAMI (PRWEB) November 08, 2019
Miami-Dade County existing home sales, median prices, dollar volume and luxury sales increased year-over-year in 3Q 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Total Miami sales increased 4.6%, from 6,792 to 7,104. Single-family home sales increased 7.5%, from 3,268 to 3,514, year-over-year in 3Q 2019. Existing condo sales increased 1.9%, from 3,524 to 3,590.
“Interest from high earners in tax burdened states and declining mortgage rates continue to drive demand in the South Florida real estate market,” MIAMI Chairman of the Board José María Serrano said.
Luxury Sales Surge in 3Q 2019
Miami single-family home luxury ($1 million and up) home sales increased 11.8% to 284 transactions. Miami existing condo luxury transactions increased 2.7% to 190 transactions.
Miami Sales Volume Rises in 3Q 2019
Miami single-family home sales volume rose 13.4%, from $1.8 billion to $2 billion. Condo sales volume stayed even at $1.3 billion. Sales figures do not include Miami’s multi-billion-dollar new construction condo market.
Traditional Sales Account for 94.3% of Transactions
Non-distressed sales comprised nearly 94.3% of all closed residential sales in 3Q 2019 vs. 93.2% in 3Q 2018. Only 5.7% of all closed residential sales in Miami were distressed in 3Q 2019, including REO (bank-owned properties) and short sales, compared to 6.8% in 3Q 2018. In 2009, distressed sales comprised nearly 70% of Miami sales.
Short sales and REOs accounted for 1.3 and 4.3%, respectively, of total Miami sales in 3Q 2019. Short sale transactions decreased 6.9% year-over-year while REOs decreased 14%.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.67% for 3Q 2019, significantly lower than the 4.57% average recorded during the same quarter a year earlier.
Miami Median Prices Rise for 31 Consecutive Quarters
The median price for single-family homes in Miami-Dade County increased to $370,000 in 3Q 2019, a 2.8% jump from $360,000 in the same period last year. The median price for existing condominiums increased 4.3% year-over-year from $235,000 to $245,000.
Median prices have now increased for 31 consecutive quarters, a streak spanning 7.75 years.
Statewide, median sales price for single-family existing homes in 3Q 2019 was $265,000, up 3.9% from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $190,000, up 4.1% over the year-ago figure.
The national median existing single-family home price in the third quarter was $280,200, up 5.1% from the third quarter of 2018 ($266,500), according to the National Association of Realtors (NAR).
Balanced Market for Single-Family Homes, Buyer’s Market for Condos
At the current sales pace, the number of active listings represents 5.9 months of inventory for single-family homes and 13 months for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
At the end of 3Q, there were 21,586 active listings in Miami-Dade, a 2.3% decrease from the 22,087 in 3Q 2018. The inventory for single-family homes decreased 3.1%, from 6,652 to 6,444. Miami existing condo inventory decreased 1.9%, from 15,435 to 15,142.
Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months’ supply of inventory is a strong indicator of real estate activity. Top Miami neighborhoods with the lowest months of supply of inventory in 3Q 2019:
1. Westwood Lakes, a South Dade community north of Kendall, 1.9 months supply
2. Richmond Heights, a South Dade community south of Kendall, 2.1 months supply
3. Brownsville, a North Dade community north of the City of Miami, 2.3 months supply
4. Cutler Bay, a South Dade city south of Palmetto Bay, 2.9 months supply
4. Palmetto Estates, a South Dade community west of Palmetto Bay, 2.9 months supply
5. Kendall West, a South Dade community west of Kendale Lakes, 3.2 months supply
1. Cutler Bay, a South Dade city south of Palmetto Bay, 3.0 months supply
1. Tamiami, a North Dade community west of Westchester, 3.0 months supply
2. Miami Lakes, a North Dade town north of Hialeah, 3.1 months supply
3. The Hammocks, a South Dade community west of Kendall, 3.3 months supply
4. Miami Gardens, a North Dade community north of Opa-locka, 3.4 months supply
State Home Sales in 3Q 2019
Closed sales of single-family homes statewide totaled 78,759 in 3Q 2019, up 8.1% from the 3Q 2018 level, according to Florida Realtors. Looking at Florida’s condo-townhouse market, statewide closed sales totaled 29,539 during 3Q 2019, up 2.2% compared to a year ago. Closed sales typically occur 30 to 90 days after sales contracts are written.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95.5% for single-family homes and 93.8% for condos in 3Q 2019.
The median time to contract for single-family home listings was 52 days, a 18.2% increase from 44 days in 3Q 2018. The median time to contract for existing condos was 77 days, a 4.1% increase from 74 days in 3Q 2018.
The median time to sale for single-family homes increased 11.1%, from 90 days to 100. The median time to sale for existing condos increased 1.7%, from 116 to 118.
Miami Cash Sales Almost Double National Figure
Cash sales represented 31.9% of Miami closed sales in 3Q 2019, compared to 36.1% in 3Q 2018. About 16% 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 U.S. real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 44.5% of all Miami existing condo sales and 19% of single-family transactions.
3Q 2019 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 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 215 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com