MIAMI, Aug. 21, 2019 /PRNewswire-PRWeb/ -- Miami-Dade County single-family home sales rose double digits as median prices, dollar volume and luxury transactions increased for all properties in July 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami single-family home sales rose 15% year-over-year, from 1,104 to 1,270.
"With its unique live-work-and-play lifestyle, growing economy and no state income tax, Miami real estate continues to attract home buyers from tax-burdened states," MIAMI Chairman of the Board José María Serrano said. "Home buyers are taking advantage of current interest rates, which are at a three-year low."
Total Miami Home Sales Rise in July
Total Miami-Dade County home sales increased 6.9% year-over-year, from 2,329 to 2,490.
Miami single-family home sales rose 15% year-over-year, from 1,104 to 1,270. Miami condo sales decreased 0.4%, from 1,225 to 1,220.
Miami single-family home luxury ($1-million-and-up) sales jumped 23.1% to 112. Miami condo luxury transactions increased 15.9% to 73.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.77% in July, down from 3.80% in June. The average commitment rate across all of 2018 was 4.54%.
Single-family dollar volume increased 31.5% from $612.5 million to $805.3 million. Condo dollar volume increased 2.0% from $457.7 million to $466.9 million.
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 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
The aforementioned could change as a result of a new condo approval process. The new guidance 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, should yield thousands of new homeownership opportunities. The rule will go into effect in mid-October.
7.6 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 0.7% in July 2019, increasing from $369,450 to $372,000. Miami single-family home prices have risen for 92 consecutive months, a streak of 7.6 years. Existing condo prices increased 2.7%, from $243,000 to $249,500. Condo prices have increased or stayed even in 94 of the last 98 months.
Despite the price increase, Miami 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 4.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 5.8% in July 2019. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 7.5%, from 134 to 124.
Short sales and REOs accounted for 1.0% and 3.9%, respectively, of total Miami sales in June 2019. Short sale transactions decreased 13.3% year-over-year while REOs decreased 5.8% percent.
Nationally, distressed sales represented 2% of sales in July, unchanged from June but down from 3% in July 2018. Less than 1% of July 2019 sales were short sales.
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 15.6% increase from 45 days last year. The median number of days between the listing date and closing date for single-family homes was 98 days, a 7.7% percent increase from 91 days.
The median time to contract for condos was 72 days, a 5.3% decrease from 76 days last year. The median number of days between listing date and closing date decreased 3.4% percent to 113 days.
The median percent of original list price received for single-family homes was 95.5 percent. The median percent of original list price received for existing condominiums was 94.0 percent.
National and State Statistics
Nationally, total existing-home sales rose 2.5% from June to a seasonally adjusted annual rate of 5.42 million in July. Overall sales are up 0.6% from a year ago (5.39 million in July 2018).
Statewide closed sales of existing single-family homes totaled 28,142 last month, up 10.4% from July 2018., according to Florida Realtors. Florida's condo-townhouse market totaled 10,470, up 4.3% compared to a year ago.
The national median existing-home price for all housing types in July was $280,800, up 4.3% from July 2018 ($269,300). July's price increase marks the 89th straight month of year-over-year gains.
In July, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 91 consecutive months. The statewide median sales price for single-family existing homes was $268,000, up 5.1% 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 $188,000, up 4.4% 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 30.3% of July 2019 total closed sales, compared to 35.8% 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 42.7% of condo closings were made in cash in July compared to 18.3% of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 2.7% in July from 6,318 active listings last year to 6,489 last month. Condominium inventory increased 1.3% to 15,378 from 15,181 listings during the same period in 2018.
The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single-family homes.
Months supply of inventory for single-family homes decreased 1.6% to 6.0 months, which indicates a balanced market. Existing condominiums have a 13.3-month supply, which indicates a buyer's market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Total active listings at the end of July increased 1.7% year-over-year, from 21,499 to 21,867. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 11.1% percent to 1,608 from 1,808. New listings of condominiums decreased 0.6%, from 2,145 to 2,133.
Nationally, total housing inventory at the end of July decreased to 1.89 million, down from 1.92 million existing-homes available for sale in June, and a 1.6% decrease from 1.92 million one year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, down from the 4.4 month-supply recorded in June and down from the 4.3-month supply recorded in July of 2018.
To access July 2019 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 99 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 47,000 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 215 international organizations worldwide. MIAMI's official website is http://www.MiamiRealtors.com
SOURCE MIAMI Association of Realtors
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