MIAMI — Miami-Dade County recorded the third-most annual single-family home sales in history and total existing home sales finished fifth all-time in 2019, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami registered 13,322 single-family home sales in 2019, a 3% year-over-year increase from 2018. Only 2015 (13,898 transactions) and 2014 (13,508) had more annual Miami single-family home sales. MIAMI and the MLS have been tracking county sales since 1994.
“Miami real estate posted another robust year of sales,” MIAMI Chairman of the Board Jorge L. Guerra Jr. said. “The $300,000 to $600,000 price range continues to be the strongest driver in the single-family homes market with a 14.7 % increase in 2019 mid-market transactions year-over-year. Low mortgage rates and the new tax law impacting tax-burdened states continues to benefit Miami real estate.”
Total Home Sales Finish with Fifth-Most Annual Sales
Miami-Dade County finished with the fifth-most annual total home sales in 2019. Miami had 27,436 total home sales in 2019, a year-over-year increase of 2.4% from 2018.
Only 2013 (30,032 transactions), 2014 (29,845), 2015 (29,795) and 2012 (27,846) had more annual Miami total home sales.
Existing Condominiums Post Sixth-Best Sales Year
Miami existing condominiums posted the sixth-best sales year in history despite competing with Miami’s multi-billion-dollar new condo construction market. A total of 14,114 Miami existing condominiums were sold in 2019, a 1.8% increase from 13,864 in 2018.
Miami real estate’s top sales years for existing condos: 2013: 17,120; 2012: 16,383; 2014: 16,337; 2011: 16,187 and 2015: 15,897.
The lack of access to mortgage loans continues to impact existing condominium sales. 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 statistics from the Florida Department of Business and Professional Regulation and FHA.
Mid-Market and Luxury Sales Post Gains in 2019
The $300,000 to $600,000 proved to be the most popular price point for Miami single-family homes in 2019. The price sector posted a 14.7% increase in sales year-over-year, increasing from 6,303 sales in 2018 to 7,231 in 2019.
The luxury segment ($1 million and up) also proved to be a strong sector for single-family homes. Miami luxury home sales increased 0.7% in 2019, increasing to 1,025.
There is strong pent-up demand for Miami luxury single-family homes. Luxury sellers are becoming more realistic with their asking prices. Federal tax reform is having an impact as more Northeastern buyers are opting to purchase in Miami to escape the higher taxes they could face in states like New York and New Jersey.
Federal tax reform, which was signed into law Dec. 22, 2017, sets a deductions cap for income, sales and property taxes at $10,000. The new cap is leading more residents of states with high property values and state income tax to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.
Miami Median Prices, Dollar Volume Rise in 2019
Miami existing single-family homes finished 2019 with a median sales price of $365,000, up 4.3% from $350,000 the previous year. The Miami median price for existing condominiums in 2019 was $245,000, an increase of 4.3 % from $235,000 in 2018.
Single-family home dollar volume increased 5.6% year-over-year, from $6.9 billion to $7.3 billion. Condo dollar volume increased 0.7%, from $5.5 billion to $5.6 billion.
Hottest Miami-Dade Neighborhoods at Year-End 2019
Months’ supply of inventory, which is an important indicator of consumer demand and market performance, reflects limited supply in many neighborhoods and price ranges. As a result, lack of supply is also impacting property sales, particularly for single-family homes.
Top Miami neighborhoods with the lowest months of supply of inventory with significant closed sales activity at year-end 2019:
- Palmetto Estates, a south Miami-Dade community west of Palmetto Bay, had 2.1 months supply
- Westwood Lakes, a south Miami-Dade community west of South Miami, had 2.3 months supply
- Hialeah Gardens, a north Miami-Dade community west of Hialeah, had a 2.5 months supply
- Kendall West, a south Miami-Dade community west of Kendale Lakes, had 2.5 months supply
- Cutler Bay, a south Miami-Dade city south of Palmetto Bay, had 3.0 months supply
- The Crossings, a south Miami-Dade community west of Kendall, had 2.1 months supply
- Kendale Lakes, a south Miami-Dade community located north of The Crossings, had 2.3 months supply
- Tamiami, a central Miami-Dade community west of Westchester, had 2.4 months supply
- Cutler Bay, a south Miami-Dade city south of Palmetto Bay, had 2.6 months supply
- Country Club, a north Miami-Dade community north of Miami Lakes, had 2.6 months supply
Miami Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2019 was 95.4%, a decrease of 0.2% from a year earlier. The median number of days to contract for Miami single-family homes increased 21.7% to 56 days in 2019 from 46 days in 2018.
The median number of days to contract for condominiums sold in 2019 was 77 days, a decrease of 2.7% from 75 days. The average % of original list price received was 93.6 %, a 0.1 % year-over-year decrease.
State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 294,120 at the end of 2019, up 5.9% compared to the 2018 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes at year’s end was $264,000, up 3.7% from the previous year.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 115,659 units sold statewide in 2019, down slightly (0.8%) from 2018. The statewide median price for condo-townhouse properties at the end of the year was $192,000, up 3.8% from year-end 2018.
The interest rate for a 30-year fixed-rate mortgage averaged 3.94% for 2019, down significantly from the previous year’s average of 4.54%, according to Freddie Mac.
Miami’s Cash Buyers Represent Nearly Double the National Figure
In 2019, cash deals represented 34.3% of Miami’s total closed sales, which is a decrease from 37.7 % in 2018. About 20% of all U.S. housing sales are made in cash, according to NAR. 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 47.5% of condo closings were made in cash in 2019 compared to 20.2% of single-family home sales.
Distressed Property Transactions Continue to Decline in Miami
About 6.2 % of all closed residential sales in Miami were distressed in 2019, including REO (bank-owned properties) and short sales, compared to 6.7% in 2018.
Short sales and REOs accounted for 1.2% and 4.9%, respectively, of total Miami sales in 2019. Short sale transactions dropped 12.8% year-over-year while REOs decreased 4.2%. A decline in short sales points to more homeowners with increased equity, which should result in increased market activity.
Seller’s Market for Miami Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes decreased 10% in 2019 from 6,877 active listings in 2018 to 6,190 in 2019. Condominium inventory decreased 7.6% to 14,662 in 2019 from 15,871 listings in 2018.
At the end of 2019, inventory for Miami single-family homes stood at a 5.6-month supply, a 12.5% decrease from 6.4 months in the previous year. Inventory for Miami existing condominiums at the end of 2019 stood at 12.5 months, which is down 8.8% from 13.7 months. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2019 increased 8.3% year-over-year, from 22,748 to 20,852. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Miami single-family homes at year-end 2019 decreased 5.3% from 21,238 to 20,110. New listings of condominiums decreased 7.5%, from 28,367 to 26,241.
4Q 2019: Miami Single-Family Home, Condo Sales Rise
Miami closed sales of existing single-family homes totaled 3,292 in the fourth quarter of 2019, up 6.8% compared to the previous year. Miami existing condo sales totaled 3,520 in 4Q 2019, up 5.6 % year-over-year.
Statewide closed sales of existing single-family homes totaled 70,839 in the fourth quarter of 2019, up 11.6% compared to the year-ago figure, according to Florida Realtors. Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 26,932 units sold statewide in 4Q 2019, up 3.3% compared to the same period a year earlier.
Median sale prices for Miami single-family homes increased 4.2%, from $355,000 to $370,000, in 4Q 2019. Condo median prices increased 4.9% from $230,500 to $245,000.
The statewide median sales price for existing single-family homes for 4Q 2019 was $265,900, up 4.3% from 4Q 2018. New pending sales for existing single-family homes for the quarter rose 13.2% compared to a year ago while pending inventory was up 8.7% from 4Q 2018. The statewide median price for condo-townhouse properties for the quarter was $195,000, up 5.9% over the previous year. New pending sales for condo-townhouses for 4Q 2019 increased 6.8% compared to a year ago while pending inventory was up 4% from the same quarter the previous year.
The national median existing single-family home price in the fourth quarter was $274,900, up 6.6% from the fourth quarter of 2018 ($258,000).
New listings of Miami single-family homes for sale in 4Q 2019 decreased 6.4% compared to the same quarter the previous year, from 4,765 to 4,461. New listings for existing condos in 4Q 2019 decreased 10.3% from 6,644 to 5,960.
To access Year-end 2019, 4Q 2019 and Local Residential Market Metrics Year-end 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 100 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 52,000 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 222 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com