MIAMI — Miami-Dade County real estate registered its second-highest total home sales quarter in history in 3Q 2021 as Miami real estate’s record-setting 2021 continues, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade County total home sales surged 35.5% year-over-year in 3Q 2021, from 7,351 to 9,962. The quarter comes on the heels of the record-breaking 11,553 total sales in 2Q 2021. In 3Q 2021, Miami single-family home transactions rose 2.2%, from 3,839 to 3,923. Miami single-family homes have now posted year-over-year sales gains in nine of the last 10 quarters, a span of 2.5 years. Miami existing condo sales increased 72%, from 3,512 to 6,039.
“Miami real estate sales were rising before the pandemic, and the pandemic has only accelerated the demand for South Florida real estate,” MIAMI Chairman of the Board Jennifer Wollmann said. “The increase availability of remote work accelerated migration to South Florida because if you can do business anywhere, why not move to a market like South Florida where your money will go farther, and your lifestyle and health will be so much better?”
Transactions also show strong gains when comparing 3Q 2021 to 3Q 2019. Miami total home sales jumped 40.2% when comparing 3Q 2019 to 3Q 2021, from 7,104 to 9,962 transactions. Condo sales (up 68.2%) and single-family home sales (up 11.6%) rose from 3Q 2019 to 3Q 2021.
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2022 should help alleviate the lack of supply.
Miami Condo Luxury Sales Jump 199.1% as Northeast and West Coast Buyers Move to Mega Region
Miami-Dade County single-family home luxury ($1-million-and-up) transactions surged 67.3% year-over-year to 738 transactions in 3Q 2021. Miami-Dade County condo luxury sales increased 199.1% to 643 transactions in 3Q 2021.
Record-low interest rates; a record-high S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern and West Coast 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.
With global vaccinations rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers. Global sales are set to surge even more now that vaccinated foreigners are allowed to resume travel to the U.S. starting November 8. Global buyers purchase in Miami because Miami is a world-class global city with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.
Miami Homeowners’ Home Equity Continues Surging as Many Pay Lower Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they are doing so while their wealth (home equity) has significantly increased. Home equity can be tapped for renovations, college loans and more.
Miami single-family home median prices rose 19% year-over-year, from $420,000 to $500,000. Median prices have now increased for 39 consecutive quarters, a streak spanning 9.75 years. Miami existing condo median prices rose 26.9% year-over-year, from $264,000 to $335,000.
Rising median prices is a trend nationwide as record-low mortgages rates and the increased availability of remote work and education has accelerated the demand for housing. Low inventory relative to high demand leads to prices rising.
Should mortgage rates resume their upward climb, home price growth is likely to slow in response. Also, as more sellers list properties in 2022, the increased inventory should ease the growth of median prices.
Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank’s 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Miami Dollar Volume Totals $7.4 Billion, Showcasing Impact Housing Plays in Local Economy
While other industries struggled over the past year, housing lifted the economy nationally and locally. For every two homes sold in the U.S., one job is created. Miami dollar volume showcases the impact housing plays in the local economy.
Miami single-family home dollar volume rose 40.5%, from $2.8 billion to $4 billion. Miami existing condo dollar volume increased 129.4% to $3.4 billion. The sales do not include Miami’s multi-billion-dollar new construction condo market.
Non-distressed sales comprised about 98.5% of all closed residential sales in 3Q 2021 vs. 96.7% in 3Q 2020. Only 1.5% of all closed residential sales in Miami were distressed in 3Q 2021, including REO (bank-owned properties) and short sales, compared to 3.3% in 3Q 2020. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 0.5% and 0.9%, respectively, of total Miami sales in 3Q 2021. Short sale transactions stayed even year-over-year at 54 while REOs fell 50%.
Lower mortgage rates made home purchases more affordable in 2021. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage declined to 2.98% from 3.09% last week. Last year at this time the rate stood at 2.84%.
Robust Demand for Housing Statewide, Nationally
Statewide, closed sales of single-family homes statewide totaled 88,592 in 3Q 2021, down 1.1% from the 3Q 2020 level; closed sales of condo-townhouse properties totaled 37,876, up 13% compared to the same quarter a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.
The statewide median sales price for single-family existing homes in the third quarter was still up 18.4% year-over-year (to $355,000), while the median condo and townhouse price was up 18.6% (to $254,900) compared to a year ago. The median is the midpoint; half the homes sold for more, half for less.
Nationally, median sales price of single-family existing homes climbed 16% from one year ago to $363,700, a slower pace in comparison to the preceding quarter (22.9%). All four major regions had double-digit year-over-year price growth, led by the Northeast (17.5%), followed by the South (14.9%), the Midwest (10.7%), and the West (10.3%).
New Listings Rise: More Sellers Listing Properties Should Help Alleviate Lack of Supply
New listings for single-family homes rose 4.4% year-over-year in 3Q 2021, from 4,751 to 4,962. New listings for condos rose 12.4% year-over-year in 3Q 2021, from 6,785 to 7,623. This is a sign that more sellers are coming to the market.
At the current sales pace, the number of active listings represents 2.2 months of inventory for single-family homes (seller’s market) and 4.3 for condominiums (seller’s market). A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami real estate had 11,006 active listings in 3Q 2021, a 39.5% drop from the 18,187 listings at the same time last year. The inventory for single-family homes dropped 26.8%, from 4,039 to 2,957. Miami existing condo inventory decreased 43.1%, from 14,148 to 8,049.
Miami Real Estate Attracting Multiple Bids, Buyers Going Over-List Price
With low inventory, particularly for single-family homes, Miami properties are attracting multiple bids and buyers going over-list price. The median percent of original list price received was 98.9% for single-family homes and 97.1 for condos in 3Q 2021.
The median time to contract for single-family home listings was 18 days, a 60.9% drop from 46 days in 3Q 2020. The median time to sale for single-family homes 29.8%, from 94 days to 66.
The median time to contract for existing condos was 40 days, a 44.4% drop from 72 days in 3Q 2020. The median time to sale for existing condos decreased 26.7%, from 116 to 85.
Miami Cash Sales 67.4% More than National Figure in 3Q 2021
Cash sales represented 38.5% of Miami closed sales in 3Q 2021, compared to 27.3% in 3Q 2020. About 23 percent of U.S. home sales are made in cash, according to the latest NAR statistics.
The high percentage of cash buyers reflects Miami’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash as well as some moving from more expensive U.S. markets who are able to buy more with their profits from real estate sales.
Cash sales accounted for 47.1% of all Miami existing condo sales and 25.1% of single-family transactions.
3Q 2021 Miami-Dade Statistical Reports — visit 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