MIAMI — Miami-Dade County single-family home sales rose year-over-year as Miami continues to lead the U.S. in price appreciation, according to December 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami single-family home sales increased 1.3% year-over-year in December 2023, from 744 to 754. Miami ranks No. 1 in the U.S. in year-over-year home price appreciation, according to the latest data of selected major cities by CoreLogic HPI. Miami is also the only U.S. city in the latest Knight Frank quarterly index to see luxury home prices rise year over year.
“Miami real estate is outperforming the nation because of our unique market fundamentals,” MIAMI Chairman of the Board Gus Fonte said. “Miami has high demand fueled by continued rising migration from buyers in high-density, high-taxed regions. South Florida also has double the amount of cash buyers than the national figure, which means our buyers are less impacted by rising mortgage rates.”
Miami-Dade Mid-Market Condo Sales Surge in December 2023
Miami-Dade condominiums home sales priced between $400,000 to $600,000 increased 9.4% in December 2023, from 234 to 256. Total $1-million-and-up home sales also surged, rising 20.4% in December 2023, from 216 to 260.
Total Miami-Dade sales decreased 3.7% in December 2023, from 1,779 to 1,714, due to elevated mortgage rates and low inventory in key price points. The statistics don’t include South Florida’s robust developer new construction market and volume.
Miami single-family home sales increased 1.3% year-over-year in December 2023, from 744 to 754. Miami existing condo sales decreased 7.2% year-over-year, from 1,035 in December 2022 to 960 in December 2023. The condo market has been more impacted by lack of inventory at key price points and elevated mortgage rates.
Total Miami New Listings Increase for Fourth Consecutive Month
Miami total new listings increased 8.9% year-over-year in December 2023, from 2,330 to 2,538. 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 new listings increased 7.66% while Miami condo new listings jumped 9.59% year-over-year.
Mortgage Rates at Near Lowest Levels Since May 2023
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.60% as of January 18. That’s down from 6.66% the prior week but up from 6.15% one year ago.
“Falling interest rates and the buildup in supply in the last quarter of 2023 set the stage for a sales rebound in 2024,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “Mortgage rates could fall to as low as 5.25% by the end of December 2024 if the Fed goes through its planned rate cuts of 0.75%. Inflation is on the wane, so I am putting a high probability that the Fed will cut rates, although the cuts will likely come in the second half of the year when inflation is nearer the 2% target.”
Miami-Dade Inventory is Still Down 43.6% From Historical Average
Total inventory is down 43.6% from the historical average for Miami. The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 11,445.
Total active listings at the end of December increased 6.9% year-over-year, from 10,706 to 11,445.
Inventory of single-family homes decreased 7.12% year-over-year in December 2023 from 4,043 active listings last year to 3,755 last month. Condominium inventory increased 15.41% year-over-year from 6,663 to 7,690 listings during the same period in 2022.
Months’ supply of inventory for single-family homes is 4.3 months, which indicates a seller’s market. Inventory for existing condominiums is 6.8 months, which indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory registered at the end of December was 1 million units, down 11.5% from November but up 4.2% from one year ago (960,000). Unsold inventory sits at a 3.2-month supply at the current sales pace, down from 3.5 months in November but up from 2.9 months in December 2022.
Miami Real Estate: 12+ Years of Consecutive Home Price Appreciation
Miami-Dade County single-family home median prices increased 14.9% year-over-year in December 2023, increasing from $530,900 to $610,000. Miami single-family median prices have risen for 145 consecutive months (+12 years), the longest running-streak on record. Existing condo median prices increased 9.48% year-over-year from $374,500 to $410,000. Condo median prices have stayed even or increased in 145 of the last 151 months.
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 $209 Million Local Economic Impact in December 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 1,714 homes in December 2023 for a local economic impact of $209.1 million.
Miami total dollar volume totaled $1.3 billion in December 2023. Single-family home dollar volume increased 14.32% year-over-year to $683 million. Condo dollar volume decreased 5.21% year-over-year to $616 million.
Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 0.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.2% in December 2022. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.2% and 0.8% year-over-year, respectively, of total Miami sales in December 2023.
Miami’s percentage of distressed sales are lower than the national figure. Nationally, distressed sales represented 2% of sales in December 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 18,423 in December 2023, down 3.8% year-over-year, while existing condo-townhouse sales totaled 7,202, down 6.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales completed transactions that include single-family homes, townhomes, condominiums and co-ops – decreased 1.0% from November to a seasonally adjusted annual rate of 3.78 million in December. Year-over-year, sales declined 6.2% (down from 4.03 million in December 2022).
The statewide median sales price for single-family existing homes was $410,000, up 3.8% 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 $330,000, up 6.5% 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 all housing types in December was $382,600, an increase of 4.4% from December 2022 ($366,500). 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 96.1% in December 2023. The median percent of original list price received for existing condominiums was 95.7%.
The median number of days between listing and contract dates for Miami single-family home sales was 28 days, down from 35 days last year. The median time to sale for single-family homes was 69 days, down from 77 days last year.
The median number of days between the listing date and contract date for condos was 37 days, up from 35 days. The median number of days to sale for condos was 76 days, up from 73 days.
Miami Cash Sales 36.8% More than National Figure
Cash sales represented 39.7% of Miami closed sales in December 2023, compared to 42.4% in December 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 49.5% of all Miami existing condo sales and 27.3% of single-family transactions.
To access December 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 104 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 260 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com
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