MIAMI, Sept. 22, 2021 /PRNewswire-PRWeb/
-- Miami-Dade County real estate broke another record, posting
its best August sales month in history as pent-up demand, more U.S.
individuals and companies moving to South
Florida, and record-low mortgage rates continue fueling
transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS)
system.
Miami-Dade County total home
sales surged 30.6% year-over-year in August
2021, from 2,527 sales to 3,299. Miami single-family home transactions
decreased 3.5%, from 1,357 to 1,309. Miami existing condo sales increased 70.1%,
from 1,170 to 1,990.
"Many of the U.S. individuals who have moved here have made
South Florida their primary home,
which means they'll be contributing to our economy year-round,"
MIAMI Chairman of the Board
Jennifer Wollmann said. "The many U.S. companies -- from Microsoft
to CI Financial -- who have signed leases and announced plans to
open regional hubs/headquarters in Miami are adding high-paying jobs. This
record-breaking sales year will have a long-lasting impact on our
community."
Miami is on pace to have its
best year ever for total sales, condo sales and single-family home
transactions. Miami real estate
has already recorded more total sales in eight months this year
(26,931) vs. all of 2020 (26,345) and nearly eclipsed 2019
(27,436). Miami's total sales
record is 30,041, set in 2013.
Miami real estate has posted
record sales months in each of the last six months (March, April,
May, June, July, and August). Of the top-10 best home sales months
in Miami history, seven have
happened since December 2020.
June 2021 (with its 4,057 total
transactions) remains the No. 1 overall sales month in Miami history. August
2021 (with its 3,299 sales) ranks as the sixth-best sales
month overall since MIAMI began
tracking stats in 1993.
Miami home sales are also
significantly higher vs. August 2019.
Miami total home sales are up
38.9% in August 2021 vs. August 2019, from 2,374 to 3,299. Miami single-family home sales (12.5%
increase) and condo transactions (64.5% jump) are higher than
August 2019.
Demand for Miami Condos Surges; Condo Sales Jump 70.1%
Year-over-Year in August 2021
Nearly every week brings another announcement of a major U.S.
company either moving their headquarters to Miami or opening offices here. Last week,
Seattle-based Microsoft announced
its plans to open a regional hub and Latin American offices in
Miami. International companies are
also showing interest in opening offices in Miami.
With so many U.S. companies and individuals relocating to our
region over the last year, many of those relocating homebuyers are
taking advantage of the condo inventory. International homebuyers,
who have long preferred condos, have pent-up demand for
Miami real estate and are also
returning to the No. 1 market for foreign homebuyers.
Miami existing condo sales are
up in all price ranges in August
2021, with major transaction increases in properties selling
at $300K and above.
Lack of inventory in certain price points is impacting sales,
particularly for single-family homes. More inventory is expected to
come to the market as potential home sellers become more
comfortable listing and showing their homes. The falling number of
homeowners in mortgage forbearance will also bring about more
inventory.
Miami Luxury Sales Jump as Northeast and West Coast Buyers Move
to Mega Region
Miami single-family luxury
($1-million-and-up) transactions
jumped 68.6% year-over-year to 258 sales in August 2021. Miami existing condo luxury ($1-million-and-up) sales increased 217.1%
year-over-year to 222 transactions.
There are 4 months of supply in luxury single-family homes; 9.8
months of supply in luxury condos. Luxury months of supply
continues to trend downward for all property types,
month-over-month, and year-over-year.
Low interest rates; a robust S&P 500; the appeal of stable
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 have all combined to
create a robust market for luxury single-family properties.
With global vaccinations rising and unstable political
situations around the world, South
Florida is seeing an increase in foreign homebuyers. Global
buyers are also coming here for the vaccine and purchasing
property. Global buyers purchase in Miami because Miami is a world-class global city with better
real estate prices than other similar global cities. Foreign buyers
feel at home with our incredible diversity and acceptance of all
cultures.
Miami single-family homes
priced between $400K to $600K surged 18.6% year-over-year to 465
transactions in August 2021.
Miami existing condo sales priced
between $400K to $600K increased 183.6% to 329 transactions.
New Listings Rise; More Inventory Arriving for
Low-Supply/High-Demand Market
New listings of Miami
single-family homes increased 4.5% to 1,695 from 1,622. New
listings of condominiums increased 19.8%, from 2,134 to 2,556.
Inventory of single-family homes decreased 27.4% year-over-year
in August 2021 from 4,164 active
listings last year to 3,025 last month. Condominium inventory
decreased 41.9% year-over-year to 8,263 from 14,226 listings during
the same period in 2020.
Months' supply of inventory is down since July 2019 for single-family, reflecting strong
demand. Months' supply of inventory for single-family homes
decreased 42.5% to 2.3 months, which indicates a seller's market.
Inventory for existing condominiums decreased 65.5% to 4.9 months,
which indicates a seller's market. A balanced market between buyers
and sellers offers between six- and nine-months supply.
Total active listings at the end of August 2021 decreased 38.6% year-over-year, from
18,390 to 11,288.
Nationally, total housing inventory at the end of August totaled
1.29 million units, down 1.5% from July's supply and down 13.4%
from one year ago (1.49 million). Unsold inventory sits at a
2.6-month supply at the current sales pace, unchanged from July but
down from 3.0 months in August
2020.
Miami Homeowners' Home Equity Continues Surging as Many Pay
Lower Mortgage Payments
With interest rates still at record lows, many South Florida homeowners have refinanced their
home loans. So not only are many homeowners paying lower mortgage
payments today; they are doing so while their wealth (home equity)
has significantly increased. Home equity can be tapped for
renovations, college loans and more.
Miami-Dade County single-family
median prices increased 20.3% year-over-year in August 2021, increasing from $416,000 to $500,500. Miami
single-family median prices have risen for 117 consecutive months,
a streak of 9.75 years. Existing condo median prices increased
26.4% year-over-year, from $265,000
to $335,000. Condo median prices have
increased or stayed even in 119 of the last 123 months.
The greater share of Miami
luxury sales in 2021 compared to a year ago is part of the reason
for the large year-over-year increase in median prices.
Rising median prices is a trend nationwide as record-low
mortgages rates and the increased availability of remote work and
education has accelerated the demand for housing. Low inventory
relative to high demand leads to prices rising.
Lower mortgage rates are making home purchases more affordable.
According to Freddie Mac, the average commitment rate for a
30-year, conventional, fixed-rate mortgage was 2.84% in August,
down from 2.87% in July. The average commitment rate across all of
2020 was 3.11%. NAR Chief Economist Lawrence Yun expects the 30-year fixed-rate
mortgage to remain below 3.5% in 2021.
Should mortgage rates resume their upward climb, home price
growth is likely to slow in response. As more sellers list
properties in 2021, the increased inventory should ease the growth
of median prices.
Miami remains a bargain
compared to other global cities. In Miami, $1
million can net homebuyers 85 square meters of prime
property, according to Knight Frank's 2021 The Wealth Report.
Monaco (15 square meters),
Hong Kong (23), London (31), New
York (34) and Geneva (35)
and others offer significantly less prime land for $1 million.
Miami Dollar Volume Totals $2.5
Billion, Showcasing Impact Housing Plays in Local
Economy
While other industries struggled over the past year, housing
lifted the economy nationally and locally. For every two homes sold
in the U.S., one job is created. Miami dollar volume showcases the impact
housing plays in the local economy.
Miami total dollar volume
totaled $2.5 billion in August 2021. Single-family home dollar volume
increased 37.4% year-over-year, from $1
billion to $1.4 billion. Condo
dollar volume increased 129.2% year-over-year, from $490.8 million to $1.1
billion.
Miami Distressed Sales Keep Dropping, Reflecting Healthy
Market
Only 1.4% of all closed residential sales in Miami were distressed last month, including
REO (bank-owned properties) and short sales, compared to 3% in
August 2020. In 2009, distressed
sales comprised 70% of Miami
sales.
Total Miami distressed sales
decreased 41.6% year-over-year in August
2021, from 77 to 45.
Short sales and REOs accounted for 0.5% and 0.9% year-over-year,
respectively, of total Miami sales
in August 2021. Short sale
transactions decreased 5.9% year-over-year while REOs decreased
51.7%.
Nationally, distressed sales represented less than 1% of sales
in August 2021, equal to August 2020.
National, State Housing Demand Robust as More Inventory Expected
to Arrive
Nationally, total existing-home sales transactions completed
transactions that include single-family homes, townhomes,
condominiums and co-ops, fell 2.0% from July to a seasonally
adjusted annual rate of 5.88 million in August. Year-over-year,
sales dropped 1.5% from a year ago (5.97 million in August 2020).
Statewide, closed sales of single-family homes in August totaled
29,550, up slightly (0.2%) year-over-year, while existing
condo-townhouse sales totaled 12,550, up 13.1% over August 2020. Closed sales may occur from 30- to
90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types
in August was $356,700, up 14.9% from
August 2020 ($310,400), as prices increased in each region.
This marks 114 straight months of
year-over-year gains.
The statewide median sales price for single-family existing
homes in August was $354,000, up 18%
from the previous year, according to data from Florida Realtors
Research Department in partnership with local Realtor
boards/associations. Last month's statewide median price for
condo-townhouse units was $252,500,
up 16.1% over August 2020. The median
is the midpoint; half the homes sold for more, half for less.
Miami Real Estate Attracting Multiple Bids, Buyers Going
Over-List Price
The median percent of original list price received for
single-family homes was 98.7% in August
2021, up 2.8% from 96% last year. The median percent of
original list price received for existing condominiums was 97.1%,
up 2.5% from 94.7% last year.
The median number of days between listing and contract dates for
Miami single-family home sales was
17 days, a 66.7% decrease from 51 days last year. The median time
to sale for single-family homes was 64 days, a 36% decrease from
100 days last year.
The median number of days between the listing date and contract
date for condos was 35 days, down 56.3% from 80 days. The median
number of days to sale for condos was 80 days, a 39.4% decrease
from 132 days.
Miami Cash Sales 76.8% More than National Figure in August 2021
Cash sales represented 38.9% of Miami closed sales in August 2021, compared to 27.1% in August 2020. About 22% of U.S. home sales are
made in cash, according to the latest NAR statistics.
The high percentage of cash buyers reflects Miami's top position as the preeminent
American real estate market for foreign buyers, who tend to
purchase with all cash as well as some moving from more expensive
U.S. markets who can buy more with their profits from real estate
sales.
Cash sales accounted for 47.6% of all Miami existing condo sales and 25.8% of
single-family transactions.
To access August 2021 Miami-Dade
Statistical Reports, visit http://www.SFMarketIntel.com
Note: Statistics in this news release may vary depending on
reporting dates. 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 101 years of service to Realtors, the buying and
selling public, and the communities in South Florida. Comprised of six organizations,
the Residential Association, the Realtors Commercial Alliance, the
Broward-MIAMI Association of
Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals
Network (YPN) Council and the award-winning International Council,
it represents 52,000 total 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 223 international organizations worldwide. MIAMI's official website is
http://www.MiamiRealtors.com
Media Contact
Chris Umpierre, MIAMI Association of Realtors, 3054687047,
chris@miamire.com
Twitter
SOURCE MIAMI Association of
Realtors