Miami-Dade County single-family home sales continued its robust year and increased year-over-year as existing condominium $1M & up sales surged triple digits above pre-pandemic numbers
MIAMI, Sept. 19, 2024 /PRNewswire-PRWeb/ -- Miami-Dade County single-family home sales continued its robust year and increased year-over-year as existing condominium $1M & up sales surged triple digits above pre-pandemic numbers, according to statistics released by the MIAMI Association of Realtors (MIAMI) and the MIAMI Southeast Florida Multiple Listing Service (SEFMLS).
Miami single-family sales have posted gains in eight of the last 10 months. Condo $1M & up transactions surged 122.2% versus pre-pandemic August 2019.
"The Federal Reserve's first rate cut in four years on Wednesday is major news as it will further drop mortgage rates and fuel even more buying in Miami's high-demand, low-supply market," MIAMI Chairman of the Board Gus Fonte said. "Miami single-family home sales again increased last month even with rates at 7% when many of those deals took place. There are many buyers on the sidelines that know this is the time to invest in Miami: the city of the future."
Miami-Dade Condominium Sale Prices Have Appreciated 128% in the Last 10 Years
Miami-Dade County single-family home median sale prices increased 3.2% year-over-year in August 2024, increasing from $620,000 to $640,000. Miami single-family median prices have risen for 153 consecutive months (12.75 years), the longest running-streak on record.
Miami single-family prices have risen 156% from August 2014 to August 2024, from $250,000 to $640,000.
Miami condo prices have risen 128% from August 2014 to August 2024, from $182,000 to $415,000.
Existing condo median prices were steady with a negligible 0.2% or $1,000 decrease year-over-year in August 2024, from $416,000 to $415,000. Condo median prices have stayed even or increased in 152 of the last 159 months, a span that covers 13.25 years.
Miami Again Ranks No. 1 in the Nation in Home Price Appreciation in September 2024
Miami continues to rank No. 1 in the U.S. in home price appreciation, according to the September 2024 Core Logic Home Price Insights.
Miami's home equity gains are nearly two times the national figure. Home equity gains on a single-family home purchased in Q1 2009 and sold in Q1 2024 are: Miami-Dade County at $533,955 versus the U.S. average at $287,111, according to MIAMI REALTORS® analysis assuming 10% downpayment and more.
Florida's Live Local Act, which was passed in 2023 and amended in May 2024, is encouraging developers to build more affordable housing. The Live Local Act gives developers the highest density allowed in a local area if they allocate 40% of its units for affordable housing. The state law defines an affordable unit as being at or below 120% of an area's median income.
Despite the increase in prices, Miami remains a value in comparison to other global cities. In Miami, $1M nets you at least 60 square meters of prime property, according to the 2024 Knight Frank The Wealth Report. This is much higher than other global cities: Sydney, Australia ($1M only purchases 43 square meters), Shanghai (42), Paris (40), Los Angeles (38), New York (34), Geneva (34), London (33), Singapore (32), Hong Kong (22) and Monaco (16).
Miami Single-Family Home Transactions Rise
Miami single-family sales increased 1.7% year-over-year, from 948 to 964. Miami-Dade single-family sales have posted gains in eight of the last 10 months.
Miami-Dade total sales decreased 8.1% year-over-year, from 2,178 to 2,002. The decline is due to lack of inventory at key price points.
Miami $1M & Up Condo Sales Surge Above Pre-Pandemic Numbers
Miami-Dade $1M & up condo transactions increased 122.2% in August 2024 versus pre-pandemic August 2019, from 54 to 120 transactions.
Miami total existing condo sales decreased 15.6% year-over-year in August 2024, from 1,230 to 1,038. The statistics would be much stronger if they included South Florida's robust developer new construction market and volume. The decline is due to lack of condo financing and inventory at key price points.
The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening. Of the 2,366 condominium buildings in Miami-Dade, Broward and Palm Beach counties, only 25 are approved for FHA loans, according to statistics from the U.S. Department of Housing and Urban Development.
Just 1.1% of South Florida condo buildings are approved for FHA loans.
Mortgage Rates Hit a New 19-Month Low as Fed Makes Large Reduction on Wednesday
Mortgage rates hit a new 19-month low on Sept. 16, declining to 6% on average, the cheapest level since early 2023. Rates declined in anticipation of the Federal Reserve's first rate cut in four years, which occurred on Wednesday. The Fed cut rates by half a percentage point, an unusually large reduction, in its fight against inflation.
"Mortgage rates could drop to as low as 5% by the end of 2025," MIAMI REALTORS® Chief Economist Gay Cororaton said. "Given the pent-up demand in the past two years, a double-digit rebound in sales and stronger price appreciation particularly in the single-family market are in the bag for 2025."
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.2% as of September 12. That's down from 6.35% one week ago and 7.18% one year ago.
Miami Condo Active Listings Are Significantly Below Historical Average & Pre-Pandemic Levels
Total inventory is still down 42.2% from the historical average for Miami. The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 14,277.
Total active listings at the end of August increased 50.8% year-over-year, from 9,467 to 14,277.
Inventory of single-family homes increased 36.6% year-over-year in August 2024 from 3,062 active listings last year to 4,183 last month.
Condominium inventory increased 57.6% year-over-year from 6,405 to 10,094 listings during the same period in 2023, but the total is still below the historical and pre-pandemic average.
Condo active listings are down 37.1% from August 2024 to pre-pandemic August 2019, from 16,049 to 10,094.
Months' supply of inventory for single-family homes is 4.7 months, which indicates a seller's market. Inventory for existing condominiums is 9.5 months, which also indicates a seller's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of August was 1.35 million units, up 0.7% from July and 22.7% from one year ago (1.1 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, up from 4.1 months in July and 3.3 months in August 2023.
Migration Bolstered South Florida's Household Income by $10 Billion
Migration bolstered Southeast Florida's aggregate household income by at least $10 billion in 2022, according to the latest most available Internal Revenue Service migration data after a new Miami Association of REALTORS® (MIAMI) analysis.
In Miami-Dade County, the average adjusted gross income of households who moved to the county (total adjusted gross income of movers divided by number of tax returns) was $175,600, which is 78% higher than the average income of households who left the county ($98,800) and 79% higher than the income of households who lived in the same county ($98,100).
Miami ranks No. 1 in the U.S. in luxury residential market price growth, via Knight Frank's 2024 Wealth Report. The same publication also ranked Miami among the Emerging Wealth Hubs. Miami is also ranked the No. 4 U.S. City for Millionaire Growth Rate over the Past Decade (75% increase), according to Henley & Partners and New World Wealth 2024 report.
Miami Real Estate Posts $246 Million Local Economic Impact in August 2024
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $123,000, according to NAR. Miami-Dade sold 2,002 homes in August 2024 for a local economic impact of $246 million.
Miami total dollar volume totaled $1.68 billion in August 2024. Single-family home dollar volume increased 0.39% year-over-year to $1 billion. Condo dollar volume decreased 20.16% year-over-year to $682 million.
Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.2% in August 2023. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.2% and 0.7% year-over-year, respectively, of total Miami sales in August 2024.
Miami's percentage of distressed sales are equal to the national figure. Nationally, distressed sales represented 1% of sales in xxxxx 2024, virtually unchanged from last month and the prior year.
Miami Sales, Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 22,675 in August 2024, down 1.1% year-over-year, while existing condo-townhouse sales totaled 7,898, down 14.9%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions that include single-family homes, townhomes, condominiums and co-ops – descended 2.5% from July to a seasonally adjusted annual rate of 3.86 million in August. Year-over-year, sales retracted 4.2% (down from 4.03 million in August 2023).
The statewide median sales price for single-family existing homes was $411,638, down 0.8% 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 $310,000, down 4.3% vs. last year. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for all housing types in August was $416,700, up 3.1% from one year ago ($404,200). All four U.S. regions posted price increases.
Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 96.8% in August 2024. The median percent of original list price received for existing condominiums was 94.8%.
The median number of days between listing and contract dates for Miami single-family home sales was 27 days, up from 23 days last year. The median time to sale for single-family homes was 70 days, down from 64 days last year.
The median number of days between the listing date and contract date for condos was 48 days, up from 34 days. The median number of days to sale for condos was 87 days, up from 76 days.
Miami Cash Sales More than National Figure
Cash sales represented 32.9% of Miami closed sales in August 2024, compared to 40.3% in August 2023. About 26% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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 as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.
Cash sales accounted for 43% of all Miami existing condo sales and 22% of single-family transactions.
To access August 2024 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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 104 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents 60,000 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 260 international organizations worldwide. MIAMI's official website is http://www.MiamiRealtors.com
Media Contact
Chris Umpierre, MIAMI Association of REALTORS, 3054687047, [email protected], www.MiamiRealtors.com
SOURCE MIAMI Association of REALTORS
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