November data regarding Real Estate Market for Miami-Dade County confirms the trend that single-family homes will continue to be a hot market for a while. And the good news is that other segments are also rebounding, such as the condo segment, which was slow in sales and seems to be recovering really well. According to the Miami Association of Realtors, demand keeps strong. Historic low-interest rates also help the entire market.
Total home sales for the county showed an amazing jump of 21% in a year-over-year comparison. 2,459 units were sold in November, against 2,033 in the same period last year. With regard to single-family homes, the most sought after kind of property, the jump was almost similar (19%). 1,154 single-family residences were sold in November this year, against 972 last year.
But single-family homes are not that easy to find, due to the low inventory and many buyers competing for the same property. We’ve already mentioned here in the blog that sooner or later people would start shifting from houses to condos since the luxury condo market has a very high inventory and prices plummeted. That is what seems to be happening. Condo transactions increased 23% year-over-year, from 1,061 to 1,301, according to the report.
With the pandemic, people started valuing their homes more than ever. Consumers are looking for more space, privacy, and a better quality of life during confinement. Although single-family homes look like the better option to address these kinds of needs, luxury large condo residences also offer similar solutions, even better, since owners may enjoy nice and exclusive amenities most houses don’t have.
And Florida has “suffered” a true invasion from out-of-state people, especially those coming from the North and Northeast. The Sunshine State receives almost 1000 new residents every day. There were already many reasons to move to Florida before the pandemic such as good weather year-round, no state income tax, low congested neighborhoods and more. But the pandemic added some more: record-low interest rates and the consolidation of remote work.
The new data give the market an optmistic projection for the new year to come. Looks like the entire market for residential properties will show good numbers, not only single-family homes, that shows a consistent growth in sales year-over-year for four years in a row now. Condos showed gains for three consecutive months.
Miami year-to-date November home sales are only 6.6% lower than last year despite the four-month interruption caused by the pandemic. Year-to-date dollar volume has already exceeded the 2019 total. Inventory has decreased the last 16 months for single-family homes and now sits at 3.6 months supply of inventory.
Luxury homes increased more than 120% in November
Luxury single-family homes, priced $ 1 million and up, jumped an amazing 120,3% year-over-year. There were 163 units sold in November 2020. Luxury condos also had an expressive increase of 88,2% in November, compared to the same month last year, with 96 units sold.
Miami single-family homes priced between $400K to $600K had a 50.4% increase year-over-year, with 352 units sold in November 2020. Miami Condo sales with prices between $400K to $600K surged 68.3%, with 138 transactions.
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