Total Miami-Dade County home sales surged 14.7 percent year-over-year in October, marking the market’s fourth consecutive month of year-over-year home transaction gains, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
Total Miami home sales have now increased year-over-year in July, August, September and October, putting the market on pace to post more total sales this year than 2017. The Miami condo market has registered 11,742 transactions so far this year through October, a 6.6 percent increase from this time last year. The Miami single-family home market has recorded 10,924 sales this year through October, a 1.3 percent increase from this time last year.
“Miami real estate is ending the year on a robust note,” said MIAMI Chairman of the Board George C. Jalil, a Miami broker. “Total year-over-year home sales have increased for four consecutive months. Pent-up demand, an increase in new listings, rising interest rates and an increasingly volatile stock market are leading more buyers to invest in Miami real estate, which has experienced nearly seven years of price appreciation.”
Miami Existing Condo Sales Have Increased in Eight of the last 10 Months
Miami existing condo sales increased 21.3 percent year-over-year in October, from 998 to 1,211.
The largest segment of growth for existing condo sales is the $150,000 to $400,000 range. The segment recorded 762 condo sales, an increase of 31.4 percent from October 2017. The $600,000 to $999,999 range sector also proved noteworthy last month, posting 80.4 percent more sales in October 2018 (83 transactions) vs. October 2017 (46 transactions).
Miami Single-Family Home Sales Surge 8.1 Percent in October
Miami-Dade County single-family home sales increased 8.1 percent year-over-year, from 993 to 1,073.
The largest segment of growth for single-family home sales is the $250,000 to $600,000 range. The segment recorded 749 single-family home sales, an increase of 29.4 percent from October 2017.
Sales Dollar Volume Increased 12.2 Percent to $949 Million
Total sales volume increased to $949 million from $846 million in October 2017. Existing condo sales volume increased from $364.6 million to $426.1 million (an increase of 16.9 percent). Single-family home total dollar volume rose 8.6 percent, from $481.4 million to $522.9 million.
Luxury sales played a role in the rise of the total sales volume. Miami single-family $1 million-and-up luxury sales stayed even year-over-year at 66 sales. Existing luxury condo sales increased 1.8 percent to 57 transactions.
Luxury single-family home sales have now increased or stayed even for six consecutive months. Luxury existing condo sales have increased in six of the last eight months.
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.
Almost Seven Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 2.9 percent in October 2018, increasing from $340,000 to $350,000. Miami single-family home prices have risen for 83 consecutive months, a streak of nearly seven years. Existing condo prices rose 8.7 percent, from $216,250 to $235,000 in October. Condo prices have increased in 86 of the last 89 months.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.83 percent in October from 4.63 percent in September. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 6.6 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 9.7 percent in September 2017. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales decreased 22.7 percent year-over-year, from 194 in October 2017 to 150 last month.
Short sales and REOs accounted for 1.2 and 5.3 percent, respectively, of total Miami sales in October 2018. Short sale transactions decreased 47.2 percent year-over-year while REOs decreased 13.5 percent.
Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 4 percent a year ago.
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 43 days, a 8.5 percent decrease from 47 days last year. The median number of days between the listing date and closing date for single-family homes was 89 days, a 12.7 percent decrease from 102 days.
The median time to contract for condos was 70 days, a 12.5 percent decrease from 80 days last year. The median number of days between listing date and closing date decreased 11.7 percent to 113 days.
The median percent of original list price received for single-family homes was 95.9 percent. The median percent of original list price received for existing condominiums was 93.5 percent.
National and State Statistics
Nationally, total existing-home sales increased 1.4 percent from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1 percent from a year ago (5.5 million in October 2017).
Statewide closed sales of existing single-family homes totaled 22,272 last month, up 8.5 percent compared to October 2017, according to Florida Realtors. Statewide closed condo sales totaled 9,270 last month, up 14.1 percent compared to a year ago.
The national median existing-home price for all housing types in October was $255,400, up 3.8 percent from October 2017 ($246,000). October’s price increase marks the 80th straight month of year-over-year gains.
October marked 82 consecutive months (more than six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $253,853, up 7.6 percent from the previous year, according to Florida Realtors. The statewide median price for condo-townhouse units in October was $180,000, up 5.9 percent over the year-ago figure.
Miami’s Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 37.3 percent of October 2018 total closed sales, compared to 37.6 percent last year. Miami cash transactions are almost double the national figure (23 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. Miami has a higher percent of cash sales for condos due to lack of financing approvals for buildings.
Condominiums comprise a large portion of Miami’s cash purchases as 50.9 percent of condo closings were made in cash in October compared to 21.8 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes increased 11.5 percent in October from 6,152 active listings last year to 6,859 last month. Condominium inventory increased 4.6 percent to 15,923 from 15,222 listings during the same period in 2017.
The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single family homes.
Monthly supply of inventory for single-family homes increased 12.3 percent to 6.4 months, which indicates a balanced market. Existing condominiums have a 13.8-month supply, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of October increased 6.6 percent year-over-year, from 21,374 to 22,782. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes increased 12 percent to 1,910 from 1,706. New listings of condominiums increased 6.8 percent, from 2,471 to 2,639.
Nationally, total housing inventory at the end of October decreased from 1.88 million in September to 1.85 million existing homes available for sale, but that represents an increase from 1.80 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, down from 4.4 last month and up from 3.9 months a year ago.
To access October 2018 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 98 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 more than 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 189 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com.