MIAMI — Miami-Dade County total home sales increased year-over-year in February 2020 thanks to a rise in mid-market and $1-million-and-up transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
“The Miami real estate market and the local economy through February have reflected very solid expansion and fundamentals,” MIAMI Chairman of the Board Jorge L. Guerra Jr. said. “We continue to closely monitor the COVID-19 situation and are optimistic that the strong demand for local real estate, population growth, low interest rates, declining months of supply and the proven resilience and vitality of South Florida will bolster activity once the current situation is resolved.”
Pending sales, which are indicators of future closed sales and reflect demand, increased in February and have now risen in 11 of the last 13 months. In another indicator of strong local demand, months supply of inventory is down since July 2019 for single-family and since March 2019 for condos.
Miami Total Home Sales Increase 7.1%
Miami total home sales increased 7.1% year-over-year, from 1,739 to 1,862. Miami single-family home sales increased 9.8% year-over-year, from 805 to 884. Miami existing condo transactions rose 4.7% year-over-year, from 934 to 978.
A rise in mid-market and $1-million-and-up transactions played an integral role in last month’s increases.
Sales for Miami single-family homes priced between $400K to $600K increased 38.8% year-over-year in February 2020 to 222 transactions. Sales for Miami condos priced between $400K to $600K increased 2.2% to 93 transactions.
In the luxury market ($1-million-and-up), sales of Miami single-family homes jumped 17.9% to 66 transactions. Sales of luxury Miami existing condos decreased 21.2% to 52 transactions in February 2020.
Dollar Volume Increases, Inventory Decreases
Single-family home dollar volume increased 1.3% year-over-year, from $449.7 million to $455.4 million. Condo dollar volume decreased 9.9% year-over-year, from $413.5 million to $372.4 million.
Inventory of active listings has decreased the last six months for condos and the last seven months for single-family. Months supply of inventory is down since July 2019 for single-family and since March 2019 for condos, reflecting strong demand.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.47% in February, down from 3.62% in January. The average commitment rate across all of 2019 was 3.94%.
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 13 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 is expected to increase sales. The new guidance, which went into effect in October 2019, 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, are expected to generate increased homeownership opportunities.
Eight Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 7.2% year-over-year in February 2020, increasing from $345,000 to $370,000. Miami single-family home prices have risen for 99 consecutive months, a streak of 8-plus years. Existing condo prices increased 2% year-over-year, from $250,000 to $255,000. Condo prices have increased or stayed even in 101 of the last 105 months.
Despite the price increase, Miami, where the median price is still comparable to 2006 figures, 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 7.4% in February 2020. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 10.2%, from 128 to 115.
Short sales and REOs accounted for 1.3% and 4.9% year-over-year, respectively, of total Miami sales in February 2020. Short sale transactions increased 50% year-over-year while REOs decreased 18.8%.
Nationally, distressed sales represented 2% of sales in February, unchanged from January and down from February 2019.
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 6.6% increase from 61 days last year. The median number of days between the listing date and closing date for single-family homes was 105 days, a 2.8% decrease from 108 days.
The median time to contract for condos was 85 days, a 2.4% increase from 83 days last year. The median number of days between the listing date and closing date for condos was 127 days, a 4.1% increase from 122 days.
The median percent of original list price received for single-family homes was 95.4%. The median percent of original list price received for existing condominiums was 94%.
National and State Statistics
Nationally, total existing-home sales transactions rose 6.5% from January to a seasonally-adjusted annual rate of 5.77 million in February. Additionally, for the eighth straight month, overall sales greatly increased year-over-year, up 7.2% from a year ago (5.38 million in February 2019).
Statewide closed sales of existing single-family homes totaled 20,693 last month, up 9.1% from February 2019, according to Florida Realtors. Florida’s condo-townhouse market totaled 8,842, up 10.8% from the level a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The national median existing-home price for all housing types in February was $270,100, up 8.0% from February 2019 ($250,100), as prices rose in every region. February’s price increase marks 96 straight months of year-over-year gains.
Statewide median sales prices for both single-family homes and condo-townhouse properties in February rose year-over-year for 98 months-in-a-row. The statewide median sales price for single-family existing homes was $270,000, up 8% 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 $200,000, up 6.7% 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 37.3% of February 2020 total closed sales, compared to 39.9% last year. Miami cash transactions are almost double the national figure (20%).
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 51.5% of condo closings were made in cash in February 2020 compared to 21.5% of single-family home sales.
Seller’s Market for Single-Family Homes, Buyer’s Market for Condos Inventory of single-family homes decreased 14% in February from 7,250 active listings last year to 6,238 last month. Condominium inventory decreased 9.8% to 14,960 from 16,583 listings during the same period in 2019.
Months supply of inventory for single-family homes decreased 19.1% to 5.5 months, which indicates a seller’s market. Inventory for existing condominiums decreased 13.1% to 12.6 months, 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 February decreased 11.1% year-over-year, from 23,833 to 21,198. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 6% to 1,674 from 1,781. New listings of condominiums decreased 5.9%, from 2,409 to 2,268.
Nationally, total housing inventory at the end of February totaled 1.47 million units, up 5.0% from January, but down 9.8% from one year ago (1.63 million). Unsold inventory sits at a 3.1-month supply at the current sales pace, equal to the supply recorded in January and down from the 3.6-month figure recorded in February 2019.
To access February 2020 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