Miami Existing Home Sales Decline, Prices Increase at Moderate Rate
by | Dec 23, 2014
After two months of significant growth, Miami home sales in November declined 9.2 percent while prices continued to experience more moderate increases, according to the 35,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
New Construction Sales Continue to Impact Existing Condo Sales
Miami, FL – After two months of significant growth, Miami home sales in November declined 9.2 percent while prices continued to experience more moderate increases, according to the 35,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
Sales Rise for Single-family Homes, Condos
Single-family home sales in Miami-Dade County decreased a negligible 1.0 percent relative to November 2013, from 982 to 972. Condominium sales decreased 15.5 percent from 1,274 the previous year to 1,077 last month. Combined, residential real estate sales decreased 9.2 percent to 2,049 compared to 2,256 in November of last year.
“2014 has been another exciting year for Miami real estate,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “While we are experiencing more moderate growth, which reflects a healthier market and more balance between buyers and sellers, sales remain strong compared to the record sales activity of the previous three years.”
Year-to-date, there have been 27,283 sales of existing single-family homes and condominiums in Miami-Dade County. If another record is not set after December sales are documented, 2014 will still be the second strongest year for local home sales.
Single-family home prices, which again increased in November year-over-year, remain at affordable 2004 levels despite three years of consistent year-over-year increases. Condo prices also increased in November, marking 41 months of growth in the last 42 months.
The median sale price for single-family homes increased 5.4 percent, up to $245,000 from $232,000 in November 2013. The average sale price for single-family homes increased 8.0 percent from $366,309 in November 2013 to $395,786 last month.
Compared to November 2013, the median sale price for condominiums also increased 5.4 percent to $189,777 from $180,000 a year prior. The average sale price for condominiums increased 11.9 percent to $311,323 from $348,290 in November 2013.
Miami Real Estate Continues Selling Fast, Close to List Price
Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand.
The median number of days on the market for single-family homes sold in November was just 47 days, an increase of 20.5 percent from November 2013. The average percent of original list price received was 93.9 percent, down a negligible 2.3 percent from a year earlier.
The median number of days on the market for condominiums sold in November was 57 days, an increase of 29.5 percent compared to the same period in 2013. The average sales price was 93.9 percent of the asking price, a decrease of 2.6 percent.
National and State Figures
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops also bounced back in November, decreased 6.1 percent from October but were up 2.1 percent above what they were in November 2013, according to the National Association of Realtors (NAR). Statewide closed sales of existing single-family homes totaled 17,772 in November, up 10.7 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 7,227, up 5.4 percent from November 2013.
The national median existing-home price for all housing types was $205,300 in November, a 5.0 percent increase from November 2013, according to NAR. The statewide median sale price for single-family existing homes last month was $176,000, up 3.5 percent from the previous year, while that of townhouse-condo properties was $140,000, up 7.7 percent over the previous year.
Cash Sales Decline Slightly, Condo Financing Remains an Obstacle
Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.
In Miami-Dade County, 53.3 percent of total closed sales in November were all-cash transactions, compared to 61.7 percent in November 2013. Cash sales in Miami are still double the national figure of 25 percent. All-cash sales accounted for 41.7 percent of single-family home and 63.8 percent of condominium closings, compared to a year earlier when cash sales were 46.7 percent of single-family home sales and 73.2 percent of condominium sales.
Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.
Short Sales Continue to Decrease
While traditional sales continue to increase, distressed property transactions in November again declined in Miami-Dade due to fewer short sales. In November, only 34.7 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 35.1 percent in November 2013.
Short sales and REOs accounted for 8.7 and 26 percent, respectively, of total Miami sales in November. Sales of REOs increased 9.2 percent while that of short sales declined by 41.4 percent.
Nationally, distressed homes accounted for 9.0 percent of November sales compared to 14 percent in November 2013.
Active Inventory Continues to Rise
After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins. Supply and demand for single-family home continues to favor sellers, while that of condos reflects a balanced market between buyers and sellers.
“While we have seen much needed increased inventory over the last couple of years, the number of existing properties being listed for sale is declining, particularly for single-family homes,” said 2014 MIAMI Association of REALTORS Residential President Francisco Angulo. “New and pre-construction inventory is providing additional supply for condos, inventory of single-family homes remains limited.”
Active listings at the end of November increased 13.7 percent, from 15,730 in 2013 to 17,880 last month but remain 60 percent below levels 2008, when sales bottomed. Inventory of single-family homes increased 8.3 percent from 5,879 in November 2013 to 6,365 last month. Condominium inventory increased 16.9 percent to 11,515 from 9,851 active listings during the same period in 2013. At the current sales pace, there is a 5.7-month supply of single-family homes, an increase of 3.3 percent from 5.5 months in November 2013, and an 8.4-month supply of condominiums, up from 6.9 months in November 2013, an increase of 21.7 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of single-family homes decreased, for the first time in two years, 1.7 percent, down to 1,725 in November 2014 from 1,754 during the same period in 2013. New condominium listings were the same as in November 2013, 2,416.
At the end of the November, total housing inventory nationally declined 6.6 percent to 2.09 million existing homes available for sale compared to the previous month, which represents a 5.1-month supply at the current sales pace. Unsold inventory nationally is 2.0 percent higher than a year ago.
New Construction Market Update
Strong sales in the coastal new construction condominium Miami market (east of I-95) continue to reflect significant demand for new properties, according to the latest New Construction Market Status Report released today by Cranespotters.com and MIAMI.
At the end of December, there were nine (9) towers with 981 units that had been completed through 2014 in Miami-Dade County east of I-95, 66 towers with 9,598 units under construction, and 72 towers with 10,521 units that are planned but have not begun development. There are also 54 towers with 7,510 units that have been announced but not approved.
Overall in Miami-Dade County, developers have announced 201 towers with 28,610 units since 2011.
Of the above projects in Miami-Dade:
90 projects with 104 towers comprising 16,363 units are currently selling
64 percent of units have been sold
The mean price per square foot of these units is $820, compared to $855 last month
Access November 2014 Miami-Dade Statistical Reports: SFMarketIntel.com
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. 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 94 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of five organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, the YPN Council and the award-winning International Council, it represents more than 35,000 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 more than 125 international organizations worldwide. MIAMI’s official website is www.miamire.com.