Miami-Dade County real estate broke another record, posting its best August sales month in history as pent-up demand, more U.S. individuals and companies moving to South Florida, and record-low mortgage rates continue fueling transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade County total home sales surged 30.6% year-over-year in August 2021, from 2,527 sales to 3,299. Miami single-family home transactions decreased 3.5%, from 1,357 to 1,309. Miami existing condo sales increased 70.1%, from 1,170 to 1,990.
“Many of the U.S. individuals who have moved here have made South Florida their primary home, which means they’ll be contributing to our economy year-round,” MIAMI Chairman of the Board Jennifer Wollmann said. “The many U.S. companies -- from Microsoft to CI Financial -- who have signed leases and announced plans to open regional hubs/headquarters in Miami are adding high-paying jobs. This record-breaking sales year will have a long-lasting impact on our community.”
Miami is on pace to have its best year ever for total sales, condo sales and single-family home transactions. Miami real estate has already recorded more total sales in eight months this year (26,931) vs. all of 2020 (26,345) and nearly eclipsed 2019 (27,436). Miami’s total sales record is 30,041, set in 2013.
Miami real estate has posted record sales months in each of the last six months (March, April, May, June, July, and August). Of the top-10 best home sales months in Miami history, seven have happened since December 2020. June 2021 (with its 4,057 total transactions) remains the No. 1 overall sales month in Miami history. August 2021 (with its 3,299 sales) ranks as the sixth-best sales month overall since MIAMI began tracking stats in 1993.
Miami home sales are also significantly higher vs. August 2019. Miami total home sales are up 38.9% in August 2021 vs. August 2019, from 2,374 to 3,299. Miami single-family home sales (12.5% increase) and condo transactions (64.5% jump) are higher than August 2019.
Demand for Miami Condos Surges; Condo Sales Jump 70.1% Year-over-Year in August 2021
Nearly every week brings another announcement of a major U.S. company either moving their headquarters to Miami or opening offices here. Last week, Seattle-based Microsoft announced its plans to open a regional hub and Latin American offices in Miami. International companies are also showing interest in opening offices in Miami.
With so many U.S. companies and individuals relocating to our region over the last year, many of those relocating homebuyers are taking advantage of the condo inventory. International homebuyers, who have long preferred condos, have pent-up demand for Miami real estate and are also returning to the No. 1 market for foreign homebuyers.
Miami existing condo sales are up in all price ranges in August 2021, with major transaction increases in properties selling at $300K and above.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. More inventory is expected to come to the market as potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.
Miami Luxury Sales Jump as Northeast and West Coast Buyers Move to Mega Region
Miami single-family luxury ($1-million-and-up) transactions jumped 68.6% year-over-year to 258 sales in August 2021. Miami existing condo luxury ($1-million-and-up) sales increased 217.1% year-over-year to 222 transactions.
There are 4 months of supply in luxury single-family homes; 9.8 months of supply in luxury condos. Luxury months of supply continues to trend downward for all property types, month-over-month, and year-over-year.
Low interest rates; a robust S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global buyers are also coming here for the vaccine and purchasing property. Global buyers purchase in Miami because Miami is a world-class global city with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.
Miami single-family homes priced between $400K to $600K surged 18.6% year-over-year to 465 transactions in August 2021. Miami existing condo sales priced between $400K to $600K increased 183.6% to 329 transactions.
New Listings Rise; More Inventory Arriving for Low-Supply/High-Demand Market
New listings of Miami single-family homes increased 4.5% to 1,695 from 1,622. New listings of condominiums increased 19.8%, from 2,134 to 2,556.
Inventory of single-family homes decreased 27.4% year-over-year in August 2021 from 4,164 active listings last year to 3,025 last month. Condominium inventory decreased 41.9% year-over-year to 8,263 from 14,226 listings during the same period in 2020.
Months’ supply of inventory is down since July 2019 for single-family, reflecting strong demand. Months’ supply of inventory for single-family homes decreased 42.5% to 2.3 months, which indicates a seller’s market. Inventory for existing condominiums decreased 65.5% to 4.9 months, which indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of August 2021 decreased 38.6% year-over-year, from 18,390 to 11,288.
Nationally, total housing inventory at the end of August totaled 1.29 million units, down 1.5% from July's supply and down 13.4% from one year ago (1.49 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from July but down from 3.0 months in August 2020.
Miami Homeowners’ Home Equity Continues Surging as Many Pay Lower Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they are doing so while their wealth (home equity) has significantly increased. Home equity can be tapped for renovations, college loans and more.
Miami-Dade County single-family median prices increased 20.3% year-over-year in August 2021, increasing from $416,000 to $500,500. Miami single-family median prices have risen for 117 consecutive months, a streak of 9.75 years. Existing condo median prices increased 26.4% year-over-year, from $265,000 to $335,000. Condo median prices have increased or stayed even in 119 of the last 123 months.
The greater share of Miami luxury sales in 2021 compared to a year ago is part of the reason for the large year-over-year increase in median prices.
Rising median prices is a trend nationwide as record-low mortgages rates and the increased availability of remote work and education has accelerated the demand for housing. Low inventory relative to high demand leads to prices rising.
Lower mortgage rates are making home purchases more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 2.84% in August, down from 2.87% in July. The average commitment rate across all of 2020 was 3.11%. NAR Chief Economist Lawrence Yun expects the 30-year fixed-rate mortgage to remain below 3.5% in 2021.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. As more sellers list properties in 2021, the increased inventory should ease the growth of median prices.
Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank’s 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Miami Dollar Volume Totals $2.5 Billion, Showcasing Impact Housing Plays in Local Economy
While other industries struggled over the past year, housing lifted the economy nationally and locally. For every two homes sold in the U.S., one job is created. Miami dollar volume showcases the impact housing plays in the local economy.
Miami total dollar volume totaled $2.5 billion in August 2021. Single-family home dollar volume increased 37.4% year-over-year, from $1 billion to $1.4 billion. Condo dollar volume increased 129.2% year-over-year, from $490.8 million to $1.1 billion.
Miami Distressed Sales Keep Dropping, 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, compared to 3% in August 2020. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 41.6% year-over-year in August 2021, from 77 to 45.
Short sales and REOs accounted for 0.5% and 0.9% year-over-year, respectively, of total Miami sales in August 2021. Short sale transactions decreased 5.9% year-over-year while REOs decreased 51.7%.
Nationally, distressed sales represented less than 1% of sales in August 2021, equal to August 2020.
National, State Housing Demand Robust as More Inventory Expected to Arrive
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 2.0% from July to a seasonally adjusted annual rate of 5.88 million in August. Year-over-year, sales dropped 1.5% from a year ago (5.97 million in August 2020).
Statewide, closed sales of single-family homes in August totaled 29,550, up slightly (0.2%) year-over-year, while existing condo-townhouse sales totaled 12,550, up 13.1% over August 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types in August was $356,700, up 14.9% from August 2020 ($310,400), as prices increased in each region. This marks 114 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes in August was $354,000, up 18% 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 $252,500, up 16.1% over August 2020. The median is the midpoint; half the homes sold for more, half for less.
Miami Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
The median percent of original list price received for single-family homes was 98.7% in August 2021, up 2.8% from 96% last year. The median percent of original list price received for existing condominiums was 97.1%, up 2.5% from 94.7% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 17 days, a 66.7% decrease from 51 days last year. The median time to sale for single-family homes was 64 days, a 36% decrease from 100 days last year.
The median number of days between the listing date and contract date for condos was 35 days, down 56.3% from 80 days. The median number of days to sale for condos was 80 days, a 39.4% decrease from 132 days.
Miami Cash Sales 76.8% More than National Figure in August 2021
Cash sales represented 38.9% of Miami closed sales in August 2021, compared to 27.1% in August 2020. About 22% of U.S. home sales 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 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 47.6% of all Miami existing condo sales and 25.8% of single-family transactions.
To access August 2021 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 101 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 52,000 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 223 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com