Buying the home of your dreams, from the comfort of your home.
MIAMI - Miami-Dade County median prices increased year-over-year in May 2020, as home sales saw expected declines as a result of the global COVID-19 situation, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS).
While the latest data shows lower levels of closed sales compared to a year ago, new pending sales in May recovered compared to April. New pending sales for single-family homes in Miami decreased 7.3%, an improvement over the April decrease of 48.2%. New pending condo sales decreased by 36.1% in May, an improvement from the decrease of 68.5% in April.
"The Miami-Dade real estate market is already experiencing a remarkable recovery as evidenced by the increase in pending sales since mid-April despite the impact of COVID-19 on May sales," said the chairman of the board of directors of MIAMI, Jorge L. Guerra Jr. “Historically low mortgage rates, virtual tools and services, reopenings, and pent-up demand keep many buyers continuing with their home buying process, which is generating very strong market activity ”.
Pending sales, which began to rise in mid-April and are stronger than they were before COVID-19 stay-at-home orders, are expected to drive an increase in closed sales in the coming months.
Mortgage applications are on the rise in South Florida and nationally as the Miami mega region continues to see additional interest in Northeast home purchases. Nationwide, mortgage applications to buy a home increased 4% last week compared to the previous week and were a remarkable 21% more than a year ago, according to the seasonally adjusted index from the Mortgage Bankers Association published on June 17. . That was the ninth consecutive week of earnings. and the highest volume in more than 11 years.
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.
102 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 4.4% year-over-year in May 2020, increasing from $ 360,000 to $ 375,714. Prices for single-family homes in Miami have risen for 102 consecutive months, a streak of 8.5 years. Existing condo prices increased 7% year-over-year, from $ 243,000 to $ 260,000. Condo prices have risen or stayed even in 104 of the last 108 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 54% year-over-year in May 2020, from 2,796 to 1,297. Miami single-family home sales decreased by 45.8% year-over-year in May 2020, from 1,355 to 734. Existing condo transactions in Miami decreased by 60.9% year-over-year in May 2020, from 1,441 to 563.
The volume of the dollar decreases
The dollar volume of single-family homes decreased by 44.1% year-over-year, from $ 716 million to $ 400.3 million. Condo dollar volume decreased by 60.4% year-over-year, from $ 585.2 million to $ 231.7 million.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage decreased to 3,23% in May, down from 3,31% in April. The average engagement rate for 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 5.7% of all closed residential sales in Miami suffered last month, including REOs (bank properties) and short sales, compared to 5.6% in May 2020. In 2009, sales in Difficulties accounted for the 70% of Miami sales.
Miami's total distressed sales decreased by 52.9%, from 157 to 74.
Short sales and REOs accounted for 1.2% and 4.5% YoY, respectively, of Miami's total sales in May 2020. Short sales transactions decreased 48.3% YoY while REOs decreased by 53.9%.
Nationally, distressed sales accounted for 3% of sales in May, almost on par with April, but up from 2% in May 2019.
Miami real estate for sale close to list price
The median percentage of the original list price received for single-family homes was 95.6% in May, 0.6% higher than the 95% last year. The median percentage of the original list price received for existing condos was 92.9%, 0.2% less than last year's 93.1%.
The median number of days between listing and contract dates for the sale of single-family homes in Miami was 44 days, a decrease of 25.4% from 59 days last year. The median number of days between the listing date and the closing date of the condominiums was 60 days, a decrease of 23.1% compared to 78 days.
Median sales time for single-family homes was 90 days, a decrease of 15.9% from 107 days last year. Median days for condo sales was 109 days, a decrease of 7.6% compared to 118 days.
National and state statistics
Nationwide, total existing home sales transactions fell 9.7% from April to a seasonally adjusted annual rate of 3.91 million in May. Overall, sales fell year-over-year, 26.6% less than a year ago (5.33 million in May 2019).
Last month's closed sales of single-family homes statewide fell 36.2% year-over-year, totaling 19,622, while condo sales decreased 50.3%, for a total of 6,069. 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 May was $ 284,600, 2.3% more than in May 2019 ($ 278,200), as prices increased in all regions. May's domestic price increase marks 99 consecutive months of year-over-year earnings.
In May, median sales prices statewide for single-family homes and condo properties increased year-over-year for 101 consecutive months. The state median sales price for existing single-family homes was $ 270,000, up 1.5% 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 $ 201,472, 3.3% higher than the prior year figure. 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 May 2020 closed sales, compared to 36.2% last year. The national number of cash buyers is 17%.
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 38.5% of condo closings were in cash in May 2020 compared to 16.2% of single-family home sales.
Single Family Home Sellers Market, Condo Buyers Market
Single-family home inventory decreased 16.2% in May from 6,759 active listings last year to 5,665 last month. Condo inventory decreased 7.5% to 14,705 from 15,893 listings during the same period in 2019.
Monthly inventory supply for single-family homes decreased 14.3% to 5.4 months, indicating a seller's market. Inventory of existing condos increased 0.7% to 13.8 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 May decreased by 10.1% year-over-year, from 22,652 to 20,370. Active listings remain approximately 60% below 2008 levels when sales bottomed out.
New listings for single-family homes in Miami decreased 10.2% to 1,559 from 1,737. New condo listings decreased 6.9%, from 2,319 to 2,160.
The inventory of active listings has decreased in the last nine months for condos and the last 10 months for single-family homes.
At the national level, the total inventory of homes at the end of May was 1.55 million units, 6.2% more than in April and 18.8% less than a year ago (1.91 million). Unsold inventory is at 4.8 months supply at current sales pace, compared to 4.0 months in April and 4.3 months in May 2019.
To access Miami-Dade statistical reports for May 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.
