Miami-Dade County luxury $1-million-and-up home sales, total home transactions, single-family home purchases, median sale prices and dollar volume went up year after year in October 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami single-family home sales increased up to 2.3% year-to-date versus the first 10 months of previous year; condo sales are up 0.5% year-to date.
“Miami’s rise as a global city, a new federal tax law limiting deductions on state and local taxes and low mortgage rates continue boosting home sales,” MIAMI Chairman of the Board José María Serrano said. “Northerners and other homebuyers are not just purchasing second homes; they are bringing businesses and moving here full time.”
Miami Luxury Home Sales, Total Sales Rise in October
Total luxury ($1-million-and-up) home sales surged 13.8% year-over-year in October 2019, from 123 to 140. Single-family home luxury sales jumped 16.7% to 77 transactions last month. Condo luxury sales went up to 10.5% to 63 transactions.
Total Miami-Dade County home sales went up 3.1% year after year, from 2,285 to 2,355. With loyal consumers, low unemployment rate, high job vacancies and increased migration to Florida, Miami real estate has a promising growth.
Miami single-family home sales increased 6.8%, from 1,073 to 1,146. Miami existing condo sales decreased a negligible 0.2%, from 1,212 to 1,209. Single-family home dollar volume rose 7.7%, from $522.9 million to $563.1 million. Condo dollar volume jumped 8.1%, from $426.2 million to $460.7 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.69% in October, up from 3.61% in September. The average commitment rate across all of 2018 was 4.54%.
Lack of access to mortgage loans continues to restrain 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.
Almost Eight Consecutive Years of Price increased in Miami - Miami-Dade County single-family home prices increased 6.8% in October 2019, increasing from $350,000 to $365,000. Miami single-family home prices have risen for 95 consecutive months, a streak of 7.92 years. Existing condo prices increased 5.1%, from $235,000 to $247,000. Condo prices have increased or stayed even in 97 of the last 101 months.
Despite the price increase, Miami, where the average price is still comparable to 2006 figures, remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 93 square meters of prime property, according to Knight Frank’s 2019 The Wealth Report. Monaco (16 square meters), Hong Kong (22), New York (31), Los Angeles (36) and others offer significantly less prime land for $1 million.
Only 6.4% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.6% in October 2019. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales stayed even at 150 in October 2018 and October 2019.
Short sales and REOs accounted for 1.2% and 5.1%, respectively, of total Miami sales in October 2019. Short sale transactions increased 3.6% year-over-year while REOs decreased 0.82% percent. Nationally, distressed sales represented 2% of sales in October, unchanged from September but down from 3% in October 2018.
The median number of days between listing and contract dates for Miami single-family home sales was 50 days, a 16.3% increase from 43 days last year. The median number of days between the listing date and closing date for single-family homes was 95 days, a 6.7% percent increase from 89 days. The median time to contract for condos was 71 days, a 1.4% increase from 70 days last year. The median number of days between listing date and closing date stayed even at 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 93.7 percent.
Miami cash transactions comprised 32.6% of October 2019 total closed sales, compared to 37.2% last year. Miami cash transactions are almost double the national figure (19%).
Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international homebuyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 43.9% of condo closings were made in cash in October compared to 20.7% of single-family home sales.
Seller’s Market for Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes decreased 4.6% in October from 6,864 active listings last year to 6,548 last month. Condominium inventory decreased 4% to 15,295 from 15,928 listings during the same period in 2018.