Miami-Dade County current condominium sales, including $1-million-and-up transactions, went up year after year in November 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system. Pending sales, which are indicators of future closed sales and reflect demand, are up in November and year to date for single-family homes and condos.
“Miami pending sales have increased in eight out of the last 10 months for both property types,” MIAMI Chairman of the Board José María Serrano said. “Homebuyers in tax-burdened states continue relocating and moving businesses to South Florida as result of the new tax law limiting deductions on state and local taxes.” Miami luxury ($1-million-and-up) condo transactions increased 4.1% to 51 transactions. Miami luxury single-family transactions decreased 11.9% to 74 transactions. Single-family home dollar volume decreased 2.2%, from $538.3 million to $526.7 million. Condo dollar volume decreased 0.2%, from $377.7 million to $377 million.
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 13 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA. Miami-Dade County single-family home prices increased 2.8% in November 2019, increasing from $355,000 to $365,000. Miami single-family home prices have risen for 96 consecutive months, a streak of 8 years. Existing condo prices increased 6.5%, from $230,000 to $245,000. Condo prices have increased or stayed even in 98 of the last 102 months. Only 6.3% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 5.8% in November 2019. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales increased 8.5%, from 118 to 128. Nationally, total existing-home sales transactions decreased 1.7% from October to a seasonally-adjusted annual rate of 5.35 million in November. However, sales are up 2.7% from a year ago (5.21 million in November 2018). Statewide closed sales of existing single-family homes totaled 21,842 last month, up 6.1% from November 2018, according to Florida Realtors. Florida’s condo-townhouse market totaled 8,101, down 6.3% from the level a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The national median existing-home price for all housing types in November was $271,300, up 5.4% from November 2018 ($257,400), as prices rose in all regions. November’s price increase marks 93 straight months of year-over-year gains. Miami cash transactions comprised 35.1% of November 2019 total closed sales, compared to 36.9% last year. Miami cash transactions are almost double the national figure (20%).
Inventory of single-family homes decreased 8% in November from 7,091 active listings last year to 6,526 last month. Condominium inventory decreased 4.9% to 15,369 from 16,162 listings during the same period in 2018. Months supply of inventory for single-family homes decreased 9.1% to 6 months, which indicates a seller’s market. Existing condominiums have a 13.2-month supply, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of November decreased 5.8% year-over-year, from 23,253 to 21,895. Active listings remain about 60% below 2008 levels when sales bottomed. New listings of Miami single-family homes decreased 11.6% to 1,438 from 1,627. New listings of condominiums decreased 9.6%, from 2,217 to 2,005.
Nationally, total housing inventory at the end of November totaled 1.64 million units, down approximately 7.3% from October and 5.7% from one year ago (1.74 million). Unsold inventory sits at a 3.7-month supply at the current sales pace, down from 3.9 months in October and from the 4.0-month figure recorded in November 2018. Unsold inventory totals have declined for five consecutive months, constraining home sales.