MIAMI/ MAY 14, 2019 (STL.News)
Miami-Dade County existing condominium sales and median sale prices for all properties increased year-over-year in 1Q 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami existing condo sales increased 0.8 percent year-over-year in 1Q 2019, increasing from 2,974 to 2,997. Single-family home sales decreased 4.9 percent, from 2,799 to 2,662. Total sales decreased 1.9 percent, from 5,773 to 5,659.
“The new federal tax code and a decline in mortgage rates continue to play a role in the increase of existing Miami condo sales,” MIAMI Chairman of the Board José María Serrano said. “More residents from northern states such as New York and New Jersey are buying a permanent home in Florida because of its better weather, favorable tax code and less expensive lifestyle.”
$2.7 billion in Total Miami Sales Volume in 1Q 2019
Total sales volume accounted for $2.7 billion in 1Q 2019, an increase from the $2.6 billion sales volume a year ago. The sales do not include Miami’s multi-billion-dollar new construction condo market.
Non-distressed sales comprised about 93 percent of all closed residential sales in 1Q 2019 vs. 92 percent in 1Q 2018. Only 7.1 percent of all closed residential sales in Miami were distressed in 1Q 2019, including REO (bank-owned properties) and short sales, compared to 7.9 percent in 1Q 2018. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 1.2 and 5.9 percent, respectively, of total Miami sales in 1Q 2019. Short sale transactions decreased 24.4 percent year-over-year while REOs fell 8.8 percent.
Mid-Market Condo Sales Fuel 1Q Transaction Growth
A rise in sales among mid-priced condos also played a key role in 1Q 2019. Miami condo sales in the $250,000 to $600,000 range increased 13.8 percent year-over-year, from 920 sales to 1,047.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.37 percent for 1Q 2019, up from the 4.27 percent average recorded during the same quarter a year earlier.
Miami Median Prices Rise for 29th Consecutive Quarter
The median price for single-family homes in Miami-Dade County increased to $350,000 in 1Q 2019, a 3.9 percent jump from $337,000 in the same period last year. The median price for existing condominiums increased 4.3 percent year-over-year from $230,000 to $240,000.
Median prices have now increased for 29 consecutive quarters, a streak spanning 7.25 years.
Statewide, median sales price for single-family existing homes in 1Q 2019 was $253,000, up 2% from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $185,575, up 3.1% over the year-ago figure.
The national median existing single-family home price in the first quarter was $254,800, up 3.9% from the first quarter of 2018 ($245,300), according to the National Association of Realtors (NAR).
Hot Markets Overview Reveals Strong 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 lowest months of supply of inventory in 1Q 2019:
1. Palm Springs North, a north Dade community north of Miami Lakes, had 1.8 months supply
2. Palmetto Estates, a South Dade community west of Palmetto Bay, had 2.1 months supply
3. Pinewood, a central Dade community west of Miami Shores, had 2.5 months supply
4. Richmond Heights, a south Dade community south of Kendall, had 2.9 months supply
5. Miami Gardens, a north Dade city that borders the Broward-County line, had 3.3 months supply
1. The Crossings, a south Dade community east of Kendall, had 2.5 months supply
2. Richmond West, a south Dade community west of Palmetto Bay, a 2.6 months supply
3. Miami Lakes, a north Dade town north of Hialeah, had 3.1 months supply
3. University Park, a south Dade community west of Westchester, had 3.1 months supply
4. Naranja, a south Dade community north of Homestead, had 3.4 months supply
National, State Home Sales in 1Q 2019
Nationwide existing–home sales, including single family and condos, increased 1.2% to a seasonally adjusted annual rate of 5.207 million in the first quarter, up from 5.143 million in the fourth quarter of 2018, according to NAR. That is 5.4% lower than the 5.507 million-pace in the first quarter of 2018.
Closed sales of single-family homes statewide totaled 59,505 in 1Q 2019, down 1.2% from the 1Q 2018 level, according to Florida Realtors. Looking at Florida’s condo-townhouse market, statewide closed sales totaled 25,060 during 1Q 2019, down 7.3% compared to 1Q 2018.
Balanced Market for Single-Family Homes, Buyer’s Market for Condos
At the current sales pace, the number of active listings represents 6.6 months of inventory for single-family homes and 14.2 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami real estate had 23,465 active listings in 1Q 2019, a 3.9 percent increase from the 22,590 listings at the same time last year. The inventory for single-family homes increased 8.2 percent, from 6,530 to 7,064. Miami existing condo inventory grew 2.1 percent, from 16,060 to 16,401.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95.1 percent for single-family homes and 93.2 percent for condos in 1Q 2019.
The median time to contract for single-family home listings was 61 days, a 27.1 percent increase from 48 days in 1Q 2018. The median time to contract for existing condos was 78 days, a 1.3 percent decrease from 79 days in 1Q 2018.
The median time to sale for single-family homes increased 10.3 percent, from 97 days to 107. The median time to sale for existing condos decreased 2.5 percent, from 122 to 119.
Miami Cash Sales Almost Double National Figure
Cash sales represented 37.5 percent of Miami closed sales in 1Q 2019, compared to 40.8 percent in 1Q 2018. About 21 percent of U.S. home properties 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.
Cash sales accounted for 51.8 percent of all Miami existing condo sales and 21.4 percent of single-family transactions.
1Q 2019 Miami-Dade Statistical Reports — visit 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 99 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 47,000 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 212 international organizations worldwide. MIAMI’s official website is http://www.MiamiRealtors.com