The Miami Just Listed real estate market broke a sales record in June 2015 with the highest number of Miami single-family home sales of any month in history and the is firmly on its pace to set another all-time annual sales record, according to a new trade industry report furnished in July. The statistics provided in the report show 1,390 single-family homes sold in June 2015, beating its previous record of 1,317 home sales established in June 2005.
For the first six months of 2015 a total of 7,100 Miami single-family homes were sold, which represents an 8.5-percent increase from the 6,543 properties sold in the first half of 2014. Miami Single-family home sales are steadfastly on pace to reach 14,600 transactions for all of 2015. The current annual Miami record was established last year with 13,521 sales.
Miami’s existing condo sales market is also on pace for a triumphant year, despite a rise in pre-construction condo sales as it saw a 4.5 percent year-over-year increase in transactions in June 2015. With a total of 8,153 existing condos that were already sold in Miami in the first six months of 2015, the path is set to top 16,030 transaction for all of 2015. Accomplishing that would rank as the third-most sales in Miami’s history behind the 16,409 sales in 2014 and the 17,142 closings in 2013.
In 2014, Latin American buyers made the most purchases in Miami-Dade and Broward counties among global consumers. Venezuelans accounted for the most international deals with 16 percent of the total. Argentinians made up 12 percent and Brazilians 11 percent.
In recent months, currency crises and political instability in Latin America and Europe have made foreign buyers more eager than ever to move their money out of their home countries and into safer investments such as American real estate and in particular Miami as the gateway to Central and South Americas.
Miami Just Listed Residential Real Estate Sales Rise
Miami single-family home transactions jumped 8.6 percent year-over-year in June 2015, from 1,280 to 1,390. Existing Miami condominium sales increased 4.5 percent, from 1,443 to 1,508. Combined, Miami-Dade County residential real estate sales rose 6.4 percent to 2,898 last month compared to 2,723 a year ago.
Miami Just Listed Median Prices Register Growth
Miami single-family home prices, which again increased in June 2015, remain at affordable 2004 levels despite four years of consistent year-over-year increases. Miami condo prices also increased in June 2015, marking 48 months of growth in the last 49 months. The median sale price for Miami single-family homes rose 14.9 percent, up to $280,000 in June 2015 from $243,700 in June 2014. The median sale price for Miami condominiums increased 7.9 percent in June to $205,000 from $190,000 a year ago.
Despite the increase in Miami median prices, it must be stressed that Miami’s residential properties remain more affordable than other world-class global cities, according to the National Association of Realtors 2015 Profile of Home Buying Activity of International Clients. NAR analyzed the cost of a 120-square meter condo in a number of foreign cities based on prices reported in the Global Property Guide and compared the prices against the median price of a condo in several major U.S. cities. A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to NAR. Compared to that, the price for the same flat in London would be $960,840, a flat in Hong Kong would run $776,280, and condo in New York City costs $1.6 million – ten times higher than in Miami.
Miami Just Listed Real Estate Continues Selling Close to List Price
Miami single-family homes and Miami condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for Miami single-family homes for sale increased 4.9 percent to 43 days in June 2015 from 41 days in June 2014. The average percent of original list price received was 95.1 percent, a decrease of 0.2 percent from a year earlier.
The median number of days on the market for a Miami Just Listed condo sold in June 2015 was 59 days, a decrease of 3.3 percent from 61 days in June 2014. The average percent of original list price received was 93.4 percent, a 1.2 percent decrease.
Statewide, closed sales of existing single-family homes statewide totaled 27,729 last month, up 19.6 percent over June 2014, according to Florida Realtors. Florida’s condominium market saw a 14.6 percent year-over-year increase with a total of 10,991 sales in June 2015.
Miami’s Cash Buyers Represent More than Twice the National Average
Cash deals represented 50.4 percent of Miami’s total closed real estate sales in June 2015, more than double the national average. Just 24 percent of all national housing sales are made in cash, according to NAR. Cash transactions represented 57.5 percent of total Miami deals in June 2014. Miami’s high percentage of cash sales continues to reflect South Florida’s historic ability to attract international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 64.4 percent of condo closings were made in cash in June compared to 35.3 percent of single-family home sales.
Short Sales Continue to Decline in Miami
Distressed property transactions declined in Miami due to fewer short sales and foreclosures. In June 2015, only 26.7 percent of all closed residential sales in Miami were distressed, including REO (bank-owned properties) and short sales, compared to 33.4 percent in June 2014.
Short sales and REOs accounted for 5.5 percent and 21.2 percent, respectively, of total Miami sales in June. Short sale transactions decreased 35.9 percent year-over-year while REOs decreased 7.3 percent. Nationally, distressed sales were 8 percent of sales in June, down from 11 percent a year ago.
Miami Just Listed Active Condo Listings on the Rise
Seller confidence continues to result in more properties being listed in Miami. Miami active listings at the end of June increased 3.8 percent year-over-year, from 17,089 to 17,740. Active listings remain about 60 percent below 2008 levels when sales bottomed. Inventory of Miami single-family homes decreased 6.0 percent from 6,122 active listings last year to 5,754 last month. Miami Just Listed condominium inventory increased 9.3 percent to 11,986 from 10,967 listings during the same period in 2014.
At the current sales pace, there is a 4.9-month supply of Miami single-family homes, a decrease of 11.4 percent from 5.5 months in June 2014. There is an 8.9-month supply of Miami condominium inventory, up from 7.8 months in June 2014, an increase of 14.2 percent. A balanced market between buyers and sellers offers between six and nine months’ supply of inventory.
New listings of Miami Just Listed single-family homes increased 6.1 percent from 2,036 in June of last year to 2,161 last month. New listings of Miami Just Listed condominiums increased 5.0 percent to 2,815 last month, compared to 2,682 during the same time period in 2014.
Nationally, total housing inventory at the end of June increased 0.9 percent to 2.30 million existing homes available for sale, and is 0.4 percent higher than a year ago (2.29 million).
New Construction Market Update
Strong sales in the preconstruction condominium Miami market east of Interstate 95 continue to reflect significant demand for new properties, according to the latest available New Construction Market Status Report.
In the four years since 2011, 12 towers with 313 floors and 1,977 units have been completed in Miami-Dade County east of I-95 as of May 2015, according to Cranespotters.com and MIAMI. There are 75 towers with 1,644 floors and 9,399 units under construction in Miami east of I-95. About 71 towers with 1,731 floors and 11,130 units are planned, but have not begun development. There are also 57 towers with 1,472 floors and 9,024 units that have been proposed in Miami east of I-95.
Overall in Miami-Dade County, developers have announced 215 towers with 5,160 floors and 31,530 units since 2011. Of the above projects in Miami-Dade:
- 103 projects with 119 towers comprising 17,199 units are currently selling.
- 71 percent of units have been sold.
- The mean minimum price per square foot of these units is $949, compared to $952 last month.
Note: Statistics in this blog post release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.