Miami existing condominium sales jumped double digits and single-family luxury $1-million-and-up transactions rose year-over-year in March, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Sales for Miami existing condominium sales rose 17.7 percent year-over-year, from 1,045 to 1,230. Condo sales have now increased in eight of the last 12 months. Miami single-family luxury sales ($1-million-and-up) increased 9.3 percent year-over-year, from 75 to 82. Luxury sales have now increased in eight of the last 11 months.
Miami condo sales continued their upward trend in March, MIAMI Chairman of the Board Jose' Maria Serrano said. A rise in mid-market condo sales and mortgage rates hovering near one-year lows factored into the overall increase.
Total Miami Home Sales Rise in March
Total Miami-Dade County Home Sales rose 7.6 percent year-over-year, from 2,149 to 2,313. Sales for Miami existing condominium sales rose 17.7 percent year-over-year, from 1,045 to 1,230. Miami single-family home sales decreased 1.9 percent, from 1,104 to 1,083
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.27 percent in March from 4.37 percent in February. The average commitment rate across all of 2018 was 4.54 percent.
Total sales volume increased to $1.1 billion last month from $1.02 billion in March 2018. Single-family home dollar volume increased 0.1 percent from $591.2 million to $591.8 million. Condo dollar volume increased 17 percent from $425.4 million to $497.6 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.
7.25 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 0.9 percent in March 2019, increasing from $348,000 to $351,000. Miami single-family home prices have risen for 88 consecutive months, a streak of 7.25 years. Existing condo prices increased 6.7 percent, from $229,500 to $244,950. Condo prices have increased or stayed even in 91 of the last 94 months.
Miami Distressed Sales Stay Low, Reflecting Healthy Market
Only 6.3 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.4 percent in March 2018. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales increased 5.1 percent year-over-year, from 138 to 145.
Short sales and REOs accounted for 1.3 and 5.0 percent, respectively, of total Miami sales in March 2019. Short sale transactions increased 3.6 percent year-over-year while REOs increased 5.5 percent.
Nationally, distressed sales represented 3 percent of sales in March, down from 4 percent last month and down from 4 percent in March 2018. One percent of March 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 65 days, a 32.7 percent increase from 49 days last year. The median number of days between the listing date and closing date for single-family homes was 109 days, a 14.7 percent increase from 95 days.
The median time to contract for condos was 80 days, a 5.3 percent increase from 76 days last year. The median number of days between listing date and closing date increased 4.3 percent to 120 days.
The median percent of original list price received for single-family homes was 95.1 percent. The median percent of original list price received for existing condominiums was 93.4 percent.
National and State Statistics
Nationally, total existing-home sales fell 4.9 percent from February to a seasonally adjusted annual rate of 5.21 million in March. Sales are down 5.4 percent from a year ago (5.51 million in March 2018).
Statewide closed sales of existing single-family homes totaled 25,013 last month, about the same level as March 2018, according to Florida Realtors. Looking at Florida's condo-townhouse market in March, statewide closed sales totaled 10,340, down 6.1 percent compared to a year ago.
The national median existing-home price for all housing types in March was $259,400, up 3.8 percent from March 2018 ($249,800). March's price increase marks the 85th straight month of year-over-year gains.
In March, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 87th month-in-a-row. The statewide median sales price for single-family existing homes was $256,000, up 2 percent 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 $189,500, up 3.6 percent 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 35.6 percent of March 2019 total closed sales, compared to 37.9 percent last year. Miami cash transactions are almost double the national figure (21 percent).
Miami's high percentage of cash sales reflects South Florida's ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami's cash purchases as 50.1 percent of condo closings were made in cash in March compared to 19.1 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 8.2 percent in March from 6,530 active listings last year to 7,064 last month. Condominium inventory increased 2.1 percent to 16,401 from 16,060 listings during the same period in 2017.
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 increased 6.5 percent to 6.6 months, which indicates a balanced market. Existing condominiums have a 14.2-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 March increased 3.9 percent year-over-year, from 22,590 to 23,465. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 4.1 percent to 1,797 from 1,874. New listings of condominiums increased 2.2 percent, from 2,398 to 2,450.
Nationally, total housing inventory at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018.
To access March 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.