Miami-Dade single-family home sales near buying frenzy
Fueled by shrinking supply and rising demand, Miami-Dade single-family home sales are close to a buying frenzy, with median sale prices increasing for 106 consecutive months and rising 15.2% in the year that ended Sept. 30, figures from the Miami Association of Realtors show.
The average single-family home now sells for $435,000, September figures show. The hottest markets appear in two distinct ranges – $400,000 to $600,000, and again in single-family homes selling for $1 million and up.
The condo market is nowhere near as hot. Although condo sales volumes and prices are rising, the supply of condos on the resale market in Miami-Dade is also growing, with the single-family inventory down 37.3% in a year versus a 6.6% increase in condo supply for sale.
Given that disparity, single-family homes have a tiny 3.8-month inventory at the present speed of sales versus an increase to a 13.8-month supply of condos.
This creates a tale of two markets: a seller’s market for scarce single-family homes coexisting with a buyer’s market for a growing sales list of condos.
The realtors association in its current monthly report explains the surge in the single-family market succinctly, citing five causal factors:
“Record-low interest rates; a record high S&P 500; the appeal of stabile assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote learning policies [that] have all combined to create a robust market for luxury single-family properties.”
The numbers bear out the strong, rapid growth in the single-family market.
Total Miami-Dade home sales jumped 12.5% from September 2019 to this year, rising from 2,240 homes sold in September 2019 to 2,521 this year. And they sold far faster: just 32 days on average from the date they were listed to the time a contract to buy was signed. Last September, that took 57 days.
They also sold for more. Last September, the median price of a single-family home achieved on the resale market was $377,750. This year it was $435,000.
It was in the $1 million and up market where home sales sparkled most. The 159 September sales in that range were 76.7% more than in September 2019.
That all led to the dollar volume of single-family home sales rising 55% from last September to this. Last September yielded $629.5 million; this September it was $975.8 million.
The condo resale story, while not gloomy, has little sparkle. Condo resale transactions, which had been more numerous than single-family homes a year earlier, were less numerous than the single-family market by this September, with 1,233 condo sales compared to 1,288 single-family home sales.
Condo sellers also got a slightly lower percentage of their asking price than did single-family home sellers, 94.4% price for condo sellers to 96.7% for single-family sales.
It also took longer to sell a condo, a median 100 days versus 84 for a single-family home.
“The pandemic continues to accelerate trends that were already apparent in the South Florida market, including affluent buyers from high-tax and high-density states purchasing in South Florida,” said Jorge L. Guerra Jr., realtors association chairman, in a prepared statement. “Home sales are not only increasing by double digits, but properties are going under contract significantly faster than last year, a sign of the robust demand for Miami real estate.”