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MIAMI - Miami-Dade County median prices rose year-over-year in June 2020 as home sales continued to trend up despite the global COVID-19 situation, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Pending new home sales in June increased double digits year-over-year. Pending sales are a future indicator of closings for one to two months. New pending single-family home sales in Miami increased 33.8% year-over-year to 1,820. New pending condo sales increased 12.9% in June to 1,504.
"The Miami-Dade real estate market continues with a strong recovery evidenced by continued growth in pending sales and increased market activity," said MIAMI Chairman Jorge L. Guerra Jr. Historically low mortgage rates, virtual tools and services, and pent-up demand keep many buyers going through their home buying process, generating strong demand from local and out-of-state buyers, particularly those in high-tax and high-tax areas. high density . «
Pending sales started to rise in mid-April and are stronger than before COVID-19 orders to stay at home. Home sales, however, are taking longer to close. Time to hire single-family homes in Miami increased 28.6% year-on-year in June, from 49 days to 63 days. Shelter-in-place and social distancing orders are in some cases delaying the closing of the home buying process, including home inspections, appraisals and walk-ins.
Mortgage applications, another indicator of future sales, are increasing in South Florida and nationally as the Miami mega region continues to see additional interest in Northeast home purchases. The Mortgage Bankers Association (MBA) reported that mortgage applications increased by 5.1% week-over-week for the week ending July 10.
The COVID-19 situation has accelerated the trend of cold-weather, tax-burdened northeastern states and New York home buyers to search and buy homes in South Florida.
Before the COVID-19 situation, the Miami-Dade market was exceptionally strong. Miami real estate had a historically low delinquency, no subprime mortgage crisis, strong demand / low supply, low interest rates, strong population growth, demand from foreign buyers and tax refugees from tax-burdened states, high consumer confidence and a strong job market.
103 consecutive months of price appreciation in Miami
Strong demand coupled with limited supply continues to drive price appreciation in Miami-Dade.
Single-family home prices in Miami-Dade County increased 5% year-over-year in June 2020, increasing from $ 370,000 to $ 388,500. Prices for single-family homes in Miami have risen for 103 consecutive months, a streak of more than 8.5 years. Existing condo prices increased 4.8% year-over-year, from $ 250,000 to $ 262,000. Condo prices have risen or stayed even in 105 of the last 109 months.
Miami, where the median price is still comparable to 2007 figures, is still a bargain compared to other cities around the world. In Miami, $ 1 million can provide homebuyers with 93 square meters of prime property, according to Knight Frank's 2019 Wealth Report. Monaco (16 square meters), Hong Kong (22), New York (31), Los Angeles (36) and others offer significantly less prime land for $ 1 million.
Decrease in total Miami home sales
Total Miami home sales decreased by 22.3% year-over-year in June 2020, from 2,436 to 1,893. Sales of single-family homes in Miami decreased 11.8% year-on-year in June 2020, from 1,234 to 1,089. Existing condo transactions in Miami decreased by 33.1% year-over-year in June 2020, from 1,202 to 804.
The volume of the dollar decreases
The dollar volume of single-family homes decreased 0.5% year-over-year, from $ 661.7 million to $ 658.5 million. Condo dollar volume decreased 29.4% year-over-year, from $ 467.5 million to $ 330.2 million.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage decreased to 3,16% in June, compared to 3,23% in May. The average engagement rate in all of 2019 was 3,94%.
Lack of access to home loans continues to inhibit further growth of the existing condo market. Of the 9,307 condo buildings in Miami-Dade and Broward counties, only 13 are approved for loans from the Federal Housing Administration, down from 29 last year, according to the Florida Department of Business and Professional Regulation and the FHA. .
A new condo approval process is expected to boost sales. The new guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner / occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which have been promoted by MIAMI and NAR, are expected to create greater homeownership opportunities.
Miami's distressed sales remain low, reflecting a healthy market
Only 5% of all closed residential sales in Miami suffered last month, including REOs (bank properties) and short sales, compared to 6.6% in June 2020. In 2009, difficult sales accounted for the 70% from Miami sales.
Miami's total distressed sales decreased by 40.6%, from 160 to 95.
Short sales and REOs accounted for 1.4% and 3.6% year-over-year, respectively, of total Miami sales in June 2020. Short sale transactions decreased 3.7% year-over-year, while REO decreased 48.1%.
Nationwide, distressed sales accounted for 3% of sales in June, almost on par with May, but up from 2% in June 2019.
Miami real estate for sale close to list price
The median percentage of the original list price received for single-family homes was 95.9% in June, 0.3% up from 95.6% last year. The median percentage of the original list price received for existing condos was 92.9%, 1% less than 93.8% last year.
The median number of days between listing and contract dates for the sale of single-family homes in Miami was 63 days, an increase of 28.6% from 49 days last year. The median number of days between the listing date and the closing date of the condominiums was 87 days, a decrease from the 13% of 77 days.
Median time to sell single-family homes was 107 days, an increase of 10.3% from 97 days last year. Median days for condo sales was 129 days, an increase of 9.3% from 118 days.
National and state statistics
Nationwide, total existing home sales transactions increased 20.7% from May to a seasonally adjusted annual rate of 4.72 million in June. However, overall sales fell year-over-year, 11.3% less than a year ago (5.32 million in June 2019).
Statewide, closed sales of single-family homes statewide last month increased 1.3% year-over-year, totaling 27,650, while single-family home sales decreased 10.9%, for a total of 8,996. Closed sales can occur 30 to 90 days after sales contracts are written.
The national average price of existing homes for all types of homes in June was $ 295,300, 3.5% more than in June 2019 ($ 285,400), as prices increased in all regions. June's domestic price increase marks 100 consecutive months of year-over-year earnings.
In June, median sales prices statewide for single-family homes and condo properties increased year-over-year for 102 consecutive months. The state median sales price for existing single-family homes was $ 282,000, up 4.4% from the prior year, according to data from the Florida Department of Realtor Research in association with local real estate boards / associations. Last month's state median price for townhouse-condo units was $ 210,000, 7.7% more than the previous year. The median is the midpoint; half of the houses sold for more, half for less.
The Top National Figure of Miami Cash Shoppers
Miami cash transactions accounted for 25.9% of total June 2020 closed sales, compared to 31.9% last year. The national number of cash buyers is 16%.
Miami's high percentage of cash sales reflects South Florida's ability to attract a diverse number of international home buyers, who tend to purchase properties for cash.
Condos comprise a large portion of Miami's cash purchases, as 38.6% of condo closings were for cash in June 2020 compared to 16.7% of single-family home sales.
Single Family Home Sellers Market, Condo Buyers Market
Single-family home inventory decreased 25.6% in June from 6,623 active listings last year to 4,929 last month. Condo inventory decreased 6.8% to 14,433 from 15,488 listings during the same period in 2019.
Monthly inventory supply for single-family homes decreased 22.6% to 4.8 months, indicating a seller's market. Existing condo inventory increased by 4.5% to 14 months, indicating a buyer's market. A balanced market between buyers and sellers offers a supply of between six and nine months.
Monthly inventory supply has dropped since July 2019 for single-family homes and since March 2019 for condos, reflecting strong demand.
Total active listings at the end of June decreased by 12.4% year-over-year, from 22,111 to 19,362. Active listings remain approximately 60% below 2008 levels when sales bottomed out.
New listings for single-family homes in Miami decreased 8.2% to 1,470 from 1,601. New condo listings increased 16.1%, from 1,920 to 2,230.
Active listing inventory has decreased in the last 11 months for single family homes.
At the national level, the total inventory of homes at the end of June amounted to 1.57 million units, 1.3% more than in May, but 18.2% less than a year ago (1.92 million). Unsold inventory is in 4.0-month supply at current sales pace, down from 4.8 months in May and 4.3 months in June 2019.
To access Miami-Dade statistical reports for June 2020, visit http://www.SFMarketIntel.com
Note: The statistics in this press release may vary depending on the dates of the reports. MIAMI reports accurate statistics directly from its MLS system.
Buying the home of your dreams, from the comfort of your home.
