Miami-Dade County total home sales, luxury transactions, median prices and dollar volume increased year-over-year in March 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“The Miami real estate market extended its run of solid expansion through March 2020,” MIAMI Chairman of the Board Jorge L. Guerra Jr. said. “While COVID-19 is expected to temporarily impact home sales on a global level, we remain optimistic the robust fundamentals of the South Florida housing market will minimize the impact and sales activity will resume later in the year, as things normalize and pent-up demand builds.”
Before the COVID-19 situation, Miami real estate had record low delinquencies, no subprime mortgage crisis, strong demand/low supply, low interest rates, strong population growth, demand from foreign buyers and tax refugees from tax burdened states, high consumer confidence and a strong job market.
Miami Total Home Sales Increase
Miami total home sales increased 0.43% year-over-year, from 2,313 to 2,323. Miami single-family home sales increased 1.6% year-over-year, from 1,083 to 1,100. Miami existing condo transactions declined 0.6% year-over-year, from 1,230 to 1,223.
A rise in mid-market and $1-million-and-up transactions played an integral role in last month’s increases.
Sales for Miami single-family homes priced between $400K to $600K increased 22.8% year-over-year in March 2020 to 269 transactions. Sales for Miami condos priced between $300K to $400K increased 44.2% to 238 transactions.
In the luxury market ($1-million-and-up), sales of Miami single-family homes jumped 17.1% to 96 transactions. Sales of luxury Miami existing condos increased 46.8% to 91 transactions in March 2020.
Miami single-family home pending sales had increased in 11 of the last 13 months and are expected to rebound later this year. Pending sales, which are indicators of future closed sales and reflect demand, declined 24.2% (1,505 to 1,141) for single-family homes and 36.3% (1,580 to 1,007) for condos year-over-year.
“We are optimistic the impact of COVID-19 should be brief and that those who have been impacted by job losses or salary cuts will get relief from the governmental stimulus package,” Guerra Jr. said. “Therefore, once the quarantine is lifted, most consumers should be able to move forward in a similar financial reality, with great demand for goods and services.”
Dollar Volume Increases
Single-family home dollar volume increased 8.3% year-over-year, from $591.8 million to $641.2 million. Condo dollar volume increased 12.1% year-over-year, from $497.6 million to $557.8 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.45% in March, down from 3.47% in February. The average commitment rate across all of 2019 was 3.94%.
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.
A new condo approval process is expected to increase sales. The new guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR has championed, are expected to generate increased homeownership opportunities.
100 Consecutive Months of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 9% year-over-year in March 2020, increasing from $351,250 to $382,750. Miami single-family home prices have risen for 100 consecutive months, a streak of 8-plus years. Existing condo prices increased 9.8% year-over-year, from $244,950 to $269,000. Condo prices have increased or stayed even in 102 of the last 106 months.
Despite the price increase, Miami, where the median 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.
Miami Distressed Sales Stay Low, Reflecting Healthy Market
Only 4.6% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.3% in March 2020. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 26.9%, from 145 to 106.
Short sales and REOs accounted for 0.7% and 3.9% year-over-year, respectively, of total Miami sales in March 2020. Short sale transactions decreased 44.8% year-over-year while REOs decreased 22.4%.
Nationally, distressed sales represented 3% of sales in March, up from 2% in February, and unchanged from 3% in March 2019.
Miami Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Miami single-family home sales was 52 days, a 20% decrease from 65 days last year. The median number of days between the listing date and closing date for single-family homes was 94 days, a 13.8% decrease from 109 days.
The median time to contract for condos was 84 days, a 5% increase from 80 days last year. The median number of days between the listing date and closing date for condos was 126 days, a 5% increase from 120 days.
The median percent of original list price received for single-family homes was 96.1%. The median percent of original list price received for existing condominiums was 94%.
National and State Statistics
Nationally, total existing-home sales transactions dropped 8.5% from February to a seasonally-adjusted annual rate of 5.27 million in March. Despite the decline, overall sales increased year-over-year for the ninth straight month, up 0.8% from a year ago (5.23 million in March 2019).
Statewide closed sales of existing single-family homes totaled 26,611 last month, 6.4% higher than March 2019, according to Florida Realtors. Florida’s condo-townhouse market totaled 10,823, up 4.7% 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 March was $280,600, up 8.0% from March 2019 ($259,700), as prices increased in every region. March’s national price increase marks 97 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in March rose year-over-year for 99 consecutive months. The statewide median sales price for single-family existing homes was $275,000, up 7.4% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $210,000, up 10.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Miami’s Cash Buyers Represent Almost Double the National Figure
Miami cash transactions comprised 32.4% of March 2020 total closed sales, compared to 35.6% 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 46.2% of condo closings were made in cash in March 2020 compared to 17% of single-family home sales.
Seller’s Market for Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes decreased 12% in March from 7,064 active listings last year to 6,216 last month. Condominium inventory decreased 9.5% to 14,836 from 16,401listings during the same period in 2019.
Months supply of inventory for single-family homes decreased 16.7% to 5.5 months, which indicates a seller’s market. Inventory for existing condominiums decreased 12% to 12.5 months, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Months supply of inventory is down since July 2019 for single-family and since March 2019 for condos, reflecting strong demand.
Total active listings at the end of March decreased 10.3% year-over-year, from 23,465 to 21,052. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 14% to 1,545 from 1,797. New listings of condominiums decreased 25.4%, from 2,450 to 1,827.
Inventory of active listings has decreased the last seven months for condos and the last eight months for single-family.
Nationally, total housing inventory at the end of March totaled 1.50 million units, up 2.7% from February, but down 10.2% from one year ago (1.67 million). Unsold inventory sits at a 3.4-month supply at the current sales pace, up from three months in February and down from the 3.8-month figure recorded in March 2019.
To access March 2020 Miami-Dade Statistical Reports, visit http://www.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 100 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 52,000 total 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 222 international organizations worldwide. MIAMI’s official website is MiamiRealtors.com