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Miami-Dade County Mid-Market Condo Sales Surge Double Digits
Miami-Dade County mid-market condominium sales surged double-digits as the South Florida real estate market continues to outperform the nation and major metros in the face of elevated mortgage rates,
MIAMI, Nov. 21, 2023 /PRNewswire-PRWeb/ -- Miami-Dade County mid-market condominium sales surged double-digits as the South Florida real estate market continues to outperform the nation and major metros in the face of elevated mortgage rates, according to October 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami existing condo sales priced between $400,000 to $600,000 increased 18 percent year-over-year to 308 transactions in October 2023. All-cash deals comprised 51.7% of all Miami condo sales last month ? that's nearly double the national figure.
"New listings in Miami have now risen for two consecutive months, a great sign for a high-demand, low-supply market such as ours," MIAMI Chairman of the Board Ines Hegedus Garcia said. "Homebuyers from high-tax, high-density states and global buyers have been waiting for fresh inventory. If mortgage rates have peaked and now dip into the 6% range by spring 2024 as many have predicted that will unlock even more local real estate activity."
Miami Total Pending Sales Rise in October 2023
Miami total pending sales increased 0.51% year-over-year in October 2023 to 1,989 transactions.
"Two telling indicators of the positive momentum are the increase in single-family pending sales and new listings in all the counties of Miami-Dade, Broward, Palm Beach, and Martin, something we have not seen since 2021 when mortgage rates were at historic lows," MIAMI REALTORS Chief Economist Gay Cororaton said. "I think the housing market is poised for a strong comeback in 2024. Rising mortgage rates have gravely hurt affordability this year and that pent-up demand will show up next year."
Miami single-family home sales decreased 1.5% year-over-year, from 884 in October 2022 to 871 in October 2023. Miami single-family home sales, which saw an increase in transactions the previous month, still has a lack of inventory in key price points as elevated mortgage rates have impacted buyers looking to finance.
Miami existing condo sales decreased 7% year-over-year, from 1,183 in October 2022 to 1,100 in October 2023. The condo market has been more impacted by lack of inventory at key price points and rising mortgage rates.
Total Miami-Dade sales decreased 4.6% in October 2023, from 2,067 to 1,971. The statistics don't include South Florida's robust developer new construction market and volume.
Total Miami New Listings Increase for Second Consecutive Month
Miami new listings increased 10.5% year-over-year in October 2023, from 3,196 to 3,533. The Miami-Dade market remains in a seller's market but the fresh supply of listings will give buyers more options.
Miami single-family homes new listings increased 6.8% while Miami condo new listings jumped 13% year-over-year.
Mortgage Rates Tumble for Third Consecutive Week with 6% Forecasted Rates in 2024
Home sales are sensitive to mortgage rates changes and after surging to near 8%, rates have declined for the past three weeks. National Association of REALTORS(R) Chief Economist Lawrence Yun said at last week's NAR NXT conference that rates have peaked and will now head to the 6% range by spring 2024.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.44% as of November 16. That's down from 7.50% the previous week but up from 6.61% one year ago.
Another leading indicator for sales are showing appointments. South Florida showing appointments declined 1% year-over-year in October 2023 to 181,633 appointments. South Florida showing appointments increased five consecutive months year-over-year before October 2023.
Miami-Dade Inventory is Still Down 46.8% From Historical Average
Total inventory is down 46.8% from the historical average for Miami. The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 10,805.
Total active listings at the end of October increased 0.1% year-over-year, from 10,799 to 10,805.
Inventory of single-family homes decreased 14.3% year-over-year in October 2023 from 4,142 active listings last year to 3,550 last month. Condominium inventory increased 9% year-over-year from 6,657 to 7,255 listings during the same period in 2022.
Months' supply of inventory for single-family homes is 4 months, which indicates a seller's market. Inventory for existing condominiums is 6.3 months, which also indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of October was 1.15 million units, up 1.8% from September but down 5.7% from one year ago (1.22 million). Unsold inventory sits at a 3.6-month supply at the current sales pace, up from 3.4 months in September and 3.3 months in October 2022.
Miami Nearly 12 Years of Consecutive Home Price Appreciation
Miami-Dade County single-family home median prices increased 7.5% year-over-year in October 2023, increasing from $575,000 to $618,217. Miami single-family median prices have risen for 143 consecutive months (11.9 years), the longest running-streak on record. Existing condo median prices increased 4.2% year-over-year from $388,531 to $405,000. Condo median prices have stayed even or increased in 143 of the last 149 months.
Miami is tied for No. 3 in the U.S. for annual home price appreciation, according to the latest US CoreLogic S&P Case-Shiller Index.
South Florida's Incredible Wealth Migration
Local home prices have risen with South Florida's wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
Miami Real Estate Posts $240 Million Local Economic Impact in October 2023
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 $122,000, according to NAR. Miami-Dade sold 1,971 homes in October 2023 for a local economic impact of $240.4 million.
Miami total dollar volume totaled $1.69 billion in October 2023. Single-family home dollar volume increased 11.8% year-over-year to $973.1 million. Condo dollar volume decreased 4% year-over-year to $717.9 million.
Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 1% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.5% in October 2022. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.3% and 0.8% year-over-year, respectively, of total Miami sales in October 2023.
Miami's percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 2% of sales in October 2023, virtually unchanged from last month and the prior year.
Miami Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 19,729 in October 2023, down 5.3% year-over-year, while existing condo-townhouse sales totaled 8,115, down 2.9%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions fell 4.1% from September to a seasonally adjusted annual rate of 3.79 million in October. Year-over-year, sales tumbled 14.6% (down from 4.44 million in October 2022).
The statewide median sales price for single-family existing homes was $410,000, up 2% 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 $321,990, up 3.9% over the year-ago figure. 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 October was $391,800, an increase of 3.4% from October 2022 ($378,800). All four U.S. regions registered price increases.
Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 96.9% in October 2023. The median percent of original list price received for existing condominiums was 96.6%.
The median number of days between listing and contract dates for Miami single-family home sales was 26 days, down from 30 days last year. The median time to sale for single-family homes was 67 days, down from 75 days last year.
The median number of days between the listing date and contract date for condos was 33 days, up from 31 days. The median number of days to sale for condos was 75 days, up from 71 days.
Miami Cash Sales 44.5% More than National Figure
ash sales represented 41.9% of Miami closed sales in October 2023, compared to 38.1% in October 2022. About 29% 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 51.7% of all Miami existing condo sales and 27.4% of single-family transactions.
To access October 2023 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 103 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 nearly 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 257 international organizations worldwide. MIAMI's official website is http://www.MiamiRealtors.com
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Media Contact
Chris Umpierre, MIAMI Association of Realtors, 3054687047, [email protected], www.MiamiRealtors.com
SOURCE MIAMI Association of Realtors
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