Residential News Miami Beach Edition | By Michael Gerrity | August 12, 2019.
According to the Miami Association of Realtors, Miami-Dade County existing home sales and increased year-over-year in 2019.
Total Miami sales increased 0.6%, from 7.717 to 7.861. Single-family home sales increased 1.8%, from 3.784 to 3.854, year-over-year in 2019. Existing condo sales declined 0.6% year-over-year, decreasing from 4.033 to 4.007. Lack of FHA financing for condos in Florida and inadequate supply in some price points continue to negatively impact local housing sales activity.
"MIAMI Chairman of the Board José María Serrano said," Interest in high-income mortgages and declining mortgage rates continues in the South Florida real estate market. "The recent drop in interest rates to a three-year low is expected to increase local demand."
$ 3.6 billion in Total Miami Sales Volume in 2Q 2019
Sales volume accounted for $ 2.0 trillion in single-family transactions and $ 1.6 trillion in townhouse and condo sales in 2019, decreases of 2.8% and 8.7%, respectively. Sales figures do not include Miami's multi-billion dollar new construction condo market.
Traditional Sales Account for 94% of Transactions
Non-distressed sales were nearly 94% of all closed residential sales in 2019 vs. 2019. 93% in 2Q 2018. Only 6.1% of all residential properties in Miami were distressed in 2019, including REO (bank-owned properties) and short sales, compared to 6.3% in 2018. In 2009, distressed sales nearly 70 % of Miami sales.
Short sales and REOs accounted for 1.1 and 4.9%, respectively, of total Miami sales in 2Q 2019. Short sale transactions decreased 25% year-over-year while REOs increased 3.8%.
Low mortgage rates make a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.73% for 2Q 2019, down from the 4.55% average recorded during the same period.
Miami Median Prices Rise for 30 Consecutive Quarters
The median price for single-family homes in Miami-Dade County increased to $ 360,000 in 2Q 2019, a 2.9% jump from $ 350,000 in the same period last year. The median price for existing condominiums increased 2.5% year-over-year from $ 240,875 to $ 247,000.
Median prices have now increased for 30 consecutive quarters, a streak spanning 7.5 years.
Statewide, $ 200,000, up to $ 264,000, up to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $ 195.00, up 2.9% over the year-ago figure.
The national median in the second quarter was $ 279,600, up from the second quarter of 2018 ($ 268,000), 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 6.2 months of inventory for single-family homes and 13.4 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
At the end of 2Q, there were 22,111 active listings in Miami-Dade, a 2.9% increase from the 21,481 at 2Q 2018. The inventory for single-family homes increased 6.6%, from 6,212 to 6,623. Miami existing condo inventory increased 1.4%, from 15,269 to 15,488.
Hot Markets Overview High 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 best of supply of inventory in 2019:
Single-Family Homes
1. Cutler Bay, South Dade Community, 3.1 months of supply
2. Miami Gardens, a North Dade city that borders the Broward-County line, 2.5 months supply
3. Pinewood, a central Dade community west of Miami Shores, 2.5 months supply
4. Richmond West, South Dade Community South of Kendall, 2.9 months supply
5. The Crossings, South Dade Community South of Kendall, 2.9 months supply
Condominiums
1. Country Club, Miami-Dade, 2.4 months of supply
2. Kendale Lakes, a community in west Kendall, 3.0 months of supply
3. Miami Lakes, north Dade town north of Hialeah, had 2.8 months supply
4. Richmond West, south Dade west of Palmetto Bay, 2.6 months supply
5. The Crossings, South Dade East of Kendall, had 2.6 months supply
National, State Home Sales in 2019
Nationwide existing single-family home sales increased 4.3% to a seasonally adjusted annual rate of 279.6 million in the second quarter, up from 268.0 million in the second quarter of 2018, according to NAR. Sales condo nationwide increased 3.6% to a seasonally adjusted annual rate of $ 255.04 million in the second quarter.
Closed sales of single-family homes totaled 85.017 in 2Q 2019, up 4.6% from the 2Q 2018 level, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide closed sales totaled 34,128 during 2Q 2019, down 1.4% compared to 2Q 2018.
Miami Homes Selling Close to List Price
The median percent of the price was 95.3% for single-family homes and 93.5% for condos in 2019.
The median time to contract for single-family home listings was 58 days, to 31.8% increase from 44 days in 2018. The median time to contract for existing condos was 76 days, at 1.3% decrease from 79 days in 2018.
The median time for sale for single-family homes increased 12.0%, from 92 days to 103. The average price for existing condos increased 0.9%, from 116 to 117.
Miami Cash Sales Almost Double National Figure
Cash sales represented 34.4% of Miami closed sales in 2019, compared to 38.1% in 2Q 2018. About 16% of US homeowners are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami's top position in the pre-eminent US real estate market for foreign buyers, who tends to buy with all cash.
Cash sales accounted for 47.4% of all Miami and 20.9% of single-family transactions.