MIAMI — Miami-Dade County total home sales surged in December 2020 as robust pent-up demand and record-low mortgage rates fueled transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade County total home sales jumped 23.3% year-over-year, from 2,424 to 2,990. Miami single-family home sales jumped 16.9% year-over-year, from 1,174 to 1,372. Miami existing condo transactions increased 29.4% year-over-year, from 1,250 to 1,618. Miami single-family home sales have now posted double-digit, year-over-year increases for five consecutive months and Miami existing condos have posted transaction gains for four straight months.
“The resiliency of Miami real estate continues to shine as total home sales climb month after month,” MIAMI Chairman of the Board Jennifer Wollmann said. “Record-low mortgage rates, intense demand for housing, the return of local in-person K-12 schooling, Florida’s low taxes, low inventory and purchases from home buyers in tax-burdened states, and increased interest from international buyers are all boosting Miami real estate.”
Japan, Mexico, Argentina, Colombia, Brazil, Canada and Italy are the top foreign countries who purchased in Miami-Dade County in December 2020, according to MLS data.
Miami single-family home year-to-date December home sales are only 0.5% lower than last year despite the four-month interruption caused by the pandemic. Year-to-date single-family home dollar volume has already exceeded the 2019 total. Inventory has decreased the last 17 months for single-family homes and now sits at 3.3 months supply of inventory.
The lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2021 should help alleviate the lack of supply.
Miami Luxury Home Sales Surge 108.5% in December 2020
Miami single-family luxury ($1-million-and-up) transactions jumped 108.5% year-over-year to 221 sales in December 2020. Miami existing condo luxury ($1-million-and-up) sales increased 51.7% year-over-year to 132 transactions.
Miami single-family homes priced between $400K to $600K surged 43% year-over-year to 426 transactions in December 2020. Miami existing condo sales priced between $400K to $600K increased 72.8% to 178 transactions.
Record-low interest rates; a robust S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
109 Consecutive Months of Price Appreciation in Miami
Strong demand coupled with limited supply continue to drive price appreciation in Miami-Dade.
Miami-Dade County single-family home prices increased 19.7% year-over-year in December 2020, increasing from $380,000 to $454,900. Miami single-family home prices have risen for 109 consecutive months, a streak of more than 9 years. Existing condo prices increased 12% year-over-year, from $245,000 to $274,500. Condo prices have increased or stayed even in 111 of the last 115 months.
Miami, where the median price is still comparable to 2007 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.
Single-Family Home and Condo Dollar Volume Increases
Single-family home dollar volume increased 85.7% year-over-year, from $703.8 million to $1.3 billion. Condo dollar volume increased 67.8% year-over-year, from $508.5 million to $853.6 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 2.68% in December, down from 2.77% in November. The average commitment rate across all of 2020 was 3.11%.
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 better condo approval process is expected to increase sales. The 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 have championed, are expected to generate increased homeownership opportunities.
Miami Distressed Sales Stay Low, Reflecting Healthy Market
Only 1.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 5.6% in December 2019. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 56.3%, from 135 to 59.
Short sales and REOs accounted for 0.6% and 1.4% year-over-year, respectively, of total Miami sales in December 2020. Short sale transactions decreased 40% year-over-year while REOs decreased 60.9%.
Nationally, distressed sales represented less than 1% of sales in December, down from 2% in December 2019.
Miami Real Estate Selling Close to List Price
The median percent of original list price received for single-family homes was 97% in December, up 1.5% from 95.6% last year. The median percent of original list price received for existing condominiums was 94.3%, up 0.6% from 93.7% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 23 days, a 54% decrease from 50 days last year. The median number of days between the listing date and closing date for condos was 56 days, down 20% from 70 days.
The median time to sale for single-family homes was 76 days, a 17.4% decrease from 92 days last year. The median number of days to sale for condos was 99 days, a 10% decrease from 110 days.
National and State Statistics
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.7% from November to a seasonally-adjusted annual rate of 6.76 million in December. Sales in total rose year-over-year, up 22.2% from a year ago (5.53 million in December 2019).
In December, closed sales of single-family homes statewide totaled 30,478, up 21% year-over-year, while existing condo-townhouse sales totaled 12,752, up 27.7% over December 2019. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types in December was $309,800, up 12.9% from December 2019 ($274,500), as prices increased in every region. December’s national price increase marks 106 straight months of year-over-year gains.
The statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year in December for 108 consecutive months. The statewide median sales price for single-family existing homes was $309,000, up 14.4% 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 $230,000, up 13.7% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Miami’s Cash Buyers Top National Figure
Miami cash transactions comprised 32.2% of December 2020 total closed sales, compared to 33.9% last year. The national figure for cash buyers is 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 42.1% of condo closings were made in cash in December 2020 compared to 20.5% of single-family home sales.
Seller’s Market for Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes decreased 40.9% in December from 6,190 active listings last year to 3,659 last month. Condominium inventory decreased 12% to 12,898 from 14,662 listings during the same period in 2019.
Inventory of active listings has decreased the last 17 months for single-family homes.
Months supply of inventory for single-family homes decreased 41.1% to 3.3 months, which indicates a seller’s market. Inventory for existing condominiums decreased 5.6% to 11.8 months, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Months supply of inventory is down since July 2019 for single-family, reflecting strong demand.
Total active listings at the end of December decreased 20.6% year-over-year, from 20,852 to 16,557. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 10.4% to 1,311 from 1,188. New listings of condominiums increased 19.7%, from 1,601 to 1,917.
Nationally, total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.
To access December 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 101 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 223 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com