MIAMI — Miami-Dade County recorded its second-best September for single-family home dollar volume in history as the South Florida real estate market continues to prove its resiliency in the face of the highest mortgage rates in two decades, according to September 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Fueled by a 30.8% year-over-year increase in $1 million-and-up transactions, Miami single-family dollar volume totaled $983.2 million in September 2023. That is a 29.4% increase year-over-year and is even 1% higher than the single-family homes September 2020 dollar volume total, when mortgage rates hit near all-time lows of 3%. September 2023 only trails Miami’s September 2021 total for single-family dollar volume ($1.2 billion).
“Between its lifestyle and its beauty, the Miami luxury single-family homes real estate market is unlike any other in the United States,” MIAMI Chairman of the Board Ines Hegedus Garcia said. “Global and domestic buyers know Miami is still undervalued in comparison to other global cities such as New York. Cash buyers are less deterred by high mortgage rates and it’s important to note Miami’s double-digit rise in single-family home cash buyers last month.”
Miami Single-Family Home Sales Rise for First Time Since January 2022
Miami single-family home sales increased 2.9% year-over-year, from 869 in September 2022 to 894 in September 2023. This marks the first-time Miami single-family home sales have increased year-over-year since January 2022.
Miami existing condo sales decreased 16.7% year-over-year, from 1,309 in September 2022 to 1,090 in September 2023. The condo market has been more impacted by lack of inventory at key price points and rising mortgage rates, which are at its highest in 23 years.
Total Miami-Dade sales decreased 8.9% in September 2023, from 2,178 to 1,984. The statistics don’t include South Florida’s robust developer new construction market and volume.
“The housing market is continuing to adjust to rising mortgage rates and is experiencing bifurcated growth,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “Homes at over $600,000 are surging, bolstered by cash and equity-rich buyers, while sales of lower priced homes, usually mortgage-financed, are shrinking. Out of-state movers — mainly from New York, California, or New Jersey—continue to move to Southeast Florida in numbers above the pre- pandemic level.”
Total Miami New Listings Rise for First Time Since August 2021
Miami’s high-demand, low-supply market got some good news in September as new listings rose for the first-time year-over-year since August 2021.
Miami had 3,295 new listings in September 2023, a 2.7% increase from 3,209. The Miami-Dade market remains in a seller’s market but the fresh supply of listings will give buyers more options.
Miami single-family homes market had 1,367 new listings in September 2023, up 1.2% from 1,351. Miami condos had 1,928 new listings, up 3.8% from 1,858.
South Florida Showing Appointments Increase for the Fifth Consecutive Month
South Florida showing appointments increased for the fifth consecutive month, increasing 2.6% year-over-year, from 188,887 in September 2022 to 193,711 in September 2023. Showing appointments are a leading indicator for home sales.
Mortgage rates are at their highest levels in 23 years. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.57% as of October 12. That’s up from 7.49% the previous week and 6.92% one year ago.
Miami-Dade Inventory is Still Down 53.7% From Pre-Pandemic
The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 9,467. Total inventory is down 53.7% from pre-pandemic (September 2019), from 21,586 to 10,003.
Total active listings at the end of September decreased 2.9% year-over-year, from 10,311 to 10,003.
Inventory of single-family homes decreased 15.2% year-over-year in September 2023 from 3,912 active listings last year to 3,318 last month. Condominium inventory increased 4.5% year-over-year from 6,399 to 6,685 listings during the same period in 2022.
Months’ supply of inventory for single-family homes is 3.8 months, which indicates a seller’s market. Inventory for existing condominiums is 5.8 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of September was 1.13 million units, up 2.7% from August but down 8.1% from one year ago (1.23 million). Unsold inventory sits at a 3.4-month supply at the current sales pace, up from 3.3 months in August and 3.2 months in September 2022.
Miami Nears 12 Years of Consecutive Home Price Appreciation
Miami-Dade County single-family home median prices increased 5.6% year-over-year in September 2023, increasing from $568,000 to $600,000. Miami single-family median prices have risen for 142 consecutive months (11.8 years), the longest running-streak on record. Existing condo median prices increased 5.1% year-over-year from $395,000 to $415,000. Condo median prices have stayed even or increased in 142 of the last 148 months.
Miami ranks No. 4 in the U.S. for annual home price appreciation, according to the latest US CoreLogic S&P Case-Shiller Index.
South Florida’s Incredible Wealth Migration
Local home prices have risen with South Florida’s wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.
New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.
Miami Real Estate Posts $242 Million Local Economic Impact in September 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $122,000, according to NAR. Miami-Dade sold 1,984 homes in September 2023 for a local economic impact of $242 million.
Miami total dollar volume totaled $1.67 billion in September 2023. Single-family home dollar volume increased 29.4% year-over-year to $983 million. Condo dollar volume decreased 17.79% year-over-year to $684 million.
Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 1.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.3% in September 2022. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.4% and 0.9% year-over-year, respectively, of total Miami sales in September 2023.
Miami’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in September 2023, virtually unchanged from last month and the prior year.
Miami Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 21,335 in September 2023, up 6.1% year-over-year, while existing condo-townhouse sales totaled 8,387, down 0.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions waned 2.0% from August to a seasonally adjusted annual rate of 3.96 million in September. Year-over-year, sales dropped 15.4% (down from 4.68 million in September 2022).
The statewide median sales price for single-family existing homes was $409,243, up 1.3% 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 $324,990, up 5.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for housing types in September was $394,300, an increase of 2.8% from September 2022 ($383,500). All four U.S. regions posted price increases.
Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 98% in September 2023. The median percent of original list price received for existing condominiums was 96.6%.
The median number of days between listing and contract dates for Miami single-family home sales was 21 days, down from 24 days last year. The median time to sale for single-family homes was 64 days, down from 68 days last year.
The median number of days between the listing date and contract date for condos was 30 days, up from 28 days. The median number of days to sale for condos was 72 days, up from 71 days.
Miami Cash Sales 42.1% More than National Figure
Cash sales represented 41.2% of Miami closed sales in September 2023, compared to 39.5% in September 2022. About 29% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. 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 can buy more with their profits from real estate sales.
Cash sales accounted for 52.5% of all Miami existing condo sales and 27.4% of single-family transactions.
To access September 2023 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 (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 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 257 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com