MIAMI, Sept. 19, 2019 /PRNewswire-PRWeb/ -- Miami-Dade County mid-market home sales and median sale prices increased for all properties in August 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami single-family home mid-market sales ($250K to $500K) increased 6.8 percent, from 781 to 834. Miami condo mid-market sales rose 10.6%, from 415 to 459.
"Miami real estate continues to offer great homes priced in the middle of the market, and homebuyers are taking advantage of current interest rates to close on these properties," MIAMI Chairman of the Board José María Serrano said. "The 30-year fixed mortgage rate is near record lows."
Total Miami Home Sales Decline in August
Total Miami-Dade County home sales decreased 2.9% year-over-year, from 2,444 to 2,374. Lack of inventory in lower price points contributed to the decline in transactions. With consumer confidence rising, unemployment low, job creation high and increased migration to Florida, Miami real estate should enjoy steady growth.
Despite the total sales decrease in August 2019, Miami single-family home sales are performing better than last year. Year to date, Miami single-family home sales have increased 0.9%. Before August, Miami single-family home sales had increased in three of the last four months.
Miami single-family home sales declined 1.9% year-over-year, from 1,186 to 1,164. Miami condo sales decreased 3.8%, from 1,258 to 1,210.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.62% in August, down from 3.77% in July. The average commitment rate across all of 2018 was 4.54%.
Single-family dollar volume decreased 9.0% from $638.4 million to $580.6 million. Condo dollar volume decreased 10.1% from $499.6 million to $449.1 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.
A new condo approval process could increase sales in the future. The new guidance, which goes into effect in mid-October, 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.
7.75 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 2.8% in August 2019, increasing from $360,000 to $370,000. Miami single-family home prices have risen for 93 consecutive months, a streak of 7.75 years. Existing condo prices increased 5.1%, from $230,000 to $241,635. Condo prices have increased or stayed even in 95 of the last 99 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 6.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 7.7% in August 2019. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 21.3%, from 188 to 148.
Short sales and REOs accounted for 1.7% and 4.5%, respectively, of total Miami sales in August 2019. Short sale transactions increased 2.5% year-over-year while REOs decreased 27.7% percent.
Nationally, distressed sales represented 2% of sales in August, unchanged from July, but down from 3% in August 2018.
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 49 days, a 22.5% increase from 40 days last year. The median number of days between the listing date and closing date for single-family homes was 98 days, a 10.1% percent increase from 89 days.
The median time to contract for condos was 73 days, a 2.7% decrease from 75 days last year. The median number of days between listing date and closing date decreased 3.4% percent to 114 days.
The median percent of original list price received for single-family homes was 95.8 percent. The median percent of original list price received for existing condominiums was 93.8 percent.
National and State Statistics
Nationally, total existing-home sales rose 1.3% from July to a seasonally adjusted annual rate of 5.49 million in August. Overall sales are up 2.6% from a year ago (5.35 million in August 2018).
Statewide closed sales of existing single-family homes totaled 27,107 last month, up 3.2% from August 2018, according to Florida Realtors. Florida's condo-townhouse market totaled 10,062, down 2.9% compared to a year ago.
The national median existing-home price for all housing types in August was $278,200, up 4.7% from August 2018($265,600). August's price increase marks the 90th straight month of year-over-year gains.
In August, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for 92 months in a row. The statewide median sales price for single-family existing homes was $265,000, up 4.2% 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 $190,000, up 2.7% 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 31.6% of August 2019 total closed sales, compared to 37.1% 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 44.7% of condo closings were made in cash in August compared to 18% of single-family home sales.
Seller's Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes decreased 0.8% in August from 6,436 active listings last year to 6,385 last month. Condominium inventory increased 0.9% to 15,202 from 15,070 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 3.3% to 5.9 months, which indicates a seller's market. Existing condominiums have a 13.2-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 August increased 0.4% year-over-year, from 21,506 to 21,587. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 16.8% percent to 1,599 from 1,923. New listings of condominiums decreased 12.6%, from 2,347 to 2,052.
Nationally, total housing inventory at the end of August decreased to 1.86 million, down from 1.90 million existing-homes available for sale in July and marking a 2.6% decrease from 1.91 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, down from 4.2 months in July and from the 4.3-month figure recorded in August 2018.
To access August 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, Broward-MIAMI, 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