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According to a recent report by the Miami Association of Realtors, Miami-Dade home sales continued to increase for the fifth consecutive month in January 2021. There is very high demand for homes in the area, and mortgage rates continue to be historically low. Overall, the Miami-Dade total home sales surged.
There was a total home sales increase in Miami-Dade of 19.1% year over year in January 2021. The number went from 1,857 to 2,211. Single-family home sales increased by 9.1% YoY, while Miami existing condo sales rose 28.1%. This marked a sale increase for five consecutive months in the Miami real estate market. This surge in sales can be due to many things. For example, the high demand from home buyers in high-tax states, the record-low mortgage rates, and the interest of Miami homes from international buyers.
From September 2020, to January 2021, Miami real estate accounted for 12,918 total home sales. This is a 18.4% increase from the five month stretch from September 2019 to January 2020. Right now, there is a lack in inventory in some price points. This is impacting sales, especially for single-family homes.
Miami Luxury Sales Rise
In January 2021, the Miami Luxury condo market saw a surge of 130.6% with 113 transactions. A luxury sale is $1-million-and-up. Miami single-family luxury sales jumped 114.1% YoY in January 2021 with 167 sales.
Furthermore, single-family homes in Miami priced between $400k and $600k increased by 51.5% YoY. Similarly, existing condo sales priced within that same range rose 64.5%.
Price Appreciation in Miami
Because of the strong demand and the limited supply, price appreciation in Miami-Dade continues to look strong. In fact, there have been 110 consecutive months of price appreciation in Miami.
The prices for single-family homes in Miami-Dade increased 25.2% year over year in January 2021. The price increase was from $375,000 to $469,500. These prices have been rising for 110 consecutive months; this is a streak of over 9 years. Similarly, existing condo prices increased from $245,000 to $280,000 (14.3% increase) YoY. Condo prices have either stayed consistent or risen in 112 of the last 116 months.
Although Miami prices continue to increase, they are still more attractive than other global cities. In Miami $1million can get buyers more space than in Monaco, Hong Kong, New York, Los Angeles, and others, according to Knight Frank’s 2019 The Wealth Report.
Dollar Volume Increases
Single-family home dollar volume increased from $471.7 million to $879.2 million (86.4%) YoY. Condo dollar volume increased 69.4% YoY from $393.9 million to $667.1 million.
Miami Distressed Sales Stay Low
Out of all closed residential sales in Miami, only 1.8% were distressed. In fact, the total distressed sales in Miami decreased 64.5% from 110 to 39. Nationally, distressed sales in January 2021 represented less than 1%. A decrease from 2% in January 2020.
National and State Statistics
Nationally, the existing home sales transactions increased 0.6% from December to a seasonally-adjusted annual rate of 6.69 million in January. In total, sales rose year over year by 23.7% (compared to January 2020).
In January, closed sales of single-family properties totaled over 21,000. Increasing 18% YoY. Similarly, existing condo/townhouse sales totaled over 9,000, increasing by 24.6% over January 2020.
Nationally, the median existing-home price in January was $303,900 (up 14.1% from January 2020). The statewide median sale price for single-family homes was $305,000 (up 15.1%).
Right Now, It Is A Seller’s Market For Single-Family Homes, And A Buyer’s Market For Condos
In January 2021, inventory of single-family homes decreased 45.8%, from 6,277 active listings last year, and 3,401 this year. On the other hand, condominium inventory only decreased 15.4% from 12,608 to 14,902 listings during the same period. Inventory for single-family homes has been decreasing for months.
For single-family homes, months supply of inventory has been down since July 2019. This reflects strong demand.
New listings for single-family homes in Miami decreased from 1,785 to 1,541. On the other hand, new listings for condos increased 1.3% from 2,468 to 2,500.
Data source: https://www.miamirealtors.com/2021/02/19/61477/
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