Miami-Dade County real estate
posted its 10th-highest total existing home sales month in history
and its second-best May sales month ever, according to the
MIAMI Association of Realtors
(MIAMI) and the Multiple Listing
Service (MLS) system.
MIAMI, June 23,
2022 /PRNewswire-PRWeb/ -- Miami-Dade County real estate posted its
10th-highest total existing home sales month in history and its
second-best May sales month ever, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS)
system.
"The rapid rise in mortgage rates, from an average of 3% to 6%
over the past six months, is tempering Miami real estate's historic pace,"
MIAMI Chairman of the Board
Fernando Arencibia Jr. said. "Although top sales marks are still
being achieved, higher rates are starting to restore balance to the
market. For the first time since July
2019, Miami single-family
home inventory rose year-over-year. Look for fewer bidding wars,
more days on market and a cooling of the growth-rate of pricing in
the months ahead."
Second-Best May Sales Month in History
Miami total closed sales in
May 2022 outperformed nearly every
other May in history despite higher mortgage rates, lower supply,
and higher sale prices.
Miami's May 2022 total home sales decreased
year-over-year (3,198 in May 2022 vs.
3,536 in May 2021) but performed
significantly higher than every May outside of May 2021.
Miami existing condo sales
decreased 7.9% year-over-year, from 2,176 in record-breaking
May 2021 to 2,005 in May 2022, due to lack of inventory and rising
mortgage rates. Single-family home sales decreased 12.3%
year-over-year, from 1,360 in record-breaking May 2021 to 1,193 in May
2022, due to lack of inventory and rising mortgage
rates.
The May 2021 sales total surged so
high because it benefited from 3% mortgage rates, higher supply
(particularly in condos) and pandemic-driven demand.
Many of the homes that sold in May
2022 had their rates established in March and April when
mortgage rates were at 5%. 2018 marked the last time mortgage rates
were at the level.
Housing is sensitive to rising mortgage rates. Nevertheless,
Miami May
2022 total home sales finished 21.9% higher than
May 2018 (3,198 vs. 2,622).
The May 2022 total home sales
count finishes as the 10th-highest total home sales month in
Miami-Dade County history. The
top-10 highest total sales months have been achieved in the last
two years. June 2021 remains No. 1
with 4,057 total home transactions in a single month.
Mid-Market $400K-$600K Condo Sales Jump
Miami existing condo sales priced
between $400K to $600K increased 29.9% year-over-year to 426
transactions in May 2022.
Miami single-family homes priced
between $400K to $600K decreased 4.5% year-over-year to 447
transactions in May 2022, due to lack
of inventory.
Mid-market condo sales are increasing because that's where the
higher inventory is. There are 2.6 months of supply for condos
priced between $400K to $600K. That's the third-highest price range in
supply, following $1M plus (6.2
months of supply) and $600K to
$999,999 (3.9 months). Demand is so
high that if Miami had more
supply, it would have more sales.
Global buyers are also major condo buyers. With global
vaccinations rising and unstable political situations around the
world, South Florida is seeing an
increase in foreign homebuyers.
Vaccinated foreigners were allowed to resume travel to the U.S.
back in November 2021 and that is
leading to more international investment in South Florida – the No. 1 destination in the
U.S. for foreign buyers. 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, along with all our amenities.
Miami Luxury Condo Sales Rise
Miami existing condo luxury
($1-million-and-up) sales rose 8.8%
year-over-year in May 2022 to 322
transactions, which are in a record-high range. Miami single-family luxury transactions
decreased 5.1% year-over-year to 258 sales in May 2022 because of low inventory.
Miami luxury condos boast an
inventory of 6.2 months of supply, portending more future growth in
the sector given the high demand. There are 4.8 months of supply in
luxury single-family homes.
Homebuyers leaving tax-burdened states to purchase in
Florida (no state income tax),
new-to-market firms moving here, low interest rates, the appeal of
property as an inflation hedge, rising wages and accrued savings in
lockdowns, strong equity market performance, a reassessment of
housing needs and lifestyles because of the pandemic and expansion
of remote work are all factors driving South Florida real estate demand.
Rising Mortgage Rates Should Eventually Slow Price Growth
Nationally, in Miami
Home prices are determined by supply and demand. Lower supply and
higher demand create higher prices. Demand for Miami real estate is at all-time highs.
Inventory for Miami single-family
homes (2.2 months) and condos (2.5 months) are low.
Locally, the greater share of Miami luxury sales is also part of the reason
for the large year-over-year increase in median prices.
To battle national inflation, the Federal Reserve has
aggressively raised rates this year and has plans for more hikes.
High inflation and the Fed's tightening policy are the main drivers
behind rising mortgage rates.
Mortgage rates have risen from 3% in January to 6% in June. On
the same $300,000 mortgage, the
monthly payment has risen from $1265
in December to $1800 today, according
to NAR.
According to Freddie Mac, the average commitment rate for a
30-year, conventional, fixed-rate mortgage was 5.23% in May, up
from 4.98% in April. The average commitment rate across all of 2021
was 2.96%.
The mortgage rate is projected to land at 5.3% by 4Q 2022,
according to NAR. That is still low compared to an all-time average
of about 8% in the U.S.
Long term, the hope is higher rates will lead to more days on
the market (gives buyers more choices). Higher rates will
eventually lead to a moderation of the growth rate of pricing. With
the growth rate of pricing cooling, total inventory could grow
later. Historically, inventory expands six months after rates rise,
but today's market is unlike any other.
Miami home prices haven't begun
to moderate because inventory is low. Also, one of the supports for
home prices is rents and rents are rising strongly.
Miami-Dade County single-family
home median prices increased 15% year-over-year in May 2022, increasing from $500,000 to $575,000. Miami
single-family median prices have risen for 126 consecutive months
(10.5 years), the longest running-streak on record. Existing condo
median prices increased 27.7% year-over-year, from $325,000 to $415,000. Condo median prices have increased in
128 of the last 132 months.
Single-Family Home Inventory Rises for the First Time Since
July 2019
Inventory of single-family homes increased 0.2% year-over-year in
May 2022 from 2,784 active listings
last year to 2,790 last month. Condominium inventory decreased
43.8% year-over-year to 5,024 from 8,946 listings during the same
period in 2021.
New listings of Miami
single-family homes decreased a negligible 0.7% to 1,813 from
1,826. New listings of condominiums decreased 3%, from 2,598 to
2,521.
Months' supply of inventory for single-family homes stayed even
at 2.2 months year-over-year, which indicates a seller's market.
Inventory for existing condominiums decreased 58.3% to 2.5 months,
which also 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 May
2022 decreased 33% year-over-year, from 11,730 to 7,814.
Nationally, total housing inventory at the end of May was
1,160,000 units, an increase of 12.6% from April and a 4.1% decline
from the previous year (1.21 million). Unsold inventory sits at a
2.6-month supply at the current sales pace, up from 2.2 months in
April and 2.5 months in May 2021.
Miami Real Estate Had a $359.8
Million Local Economic Impact Just in May 2022
Every time a home is sold it impacts the economy: income generated
from real estate industries (commissions, fees and moving
expenses), expenditures related to home purchase (furniture and
remodeling expenses), multiplier of housing related expenditures
(income earned as a result of a home sale is re-circulated into the
economy) and new construction (additional home sales induce added
home production).
The total economic impact of a typical Florida home sale is $112,500, according to NAR. Miami-Dade County sold 3,198 homes in
May 2022 and had a local economic
impact of $359.8 million.
Miami total dollar volume
totaled $2.81 billion in May 2022. Single-family home dollar volume
decreased 8.31% year-over-year, from $1.4
billion to $1.3 billion. Condo
dollar volume increased 3% year-over-year, from $1.47 billion to $1.51
billion.
Miami Distressed Sales Keep Dropping, Reflecting Healthy
Market
Only 1.2% of all closed residential sales in Miami were distressed last month, including
REO (bank-owned properties) and short sales, lower than the 1.7% in
May 2021. In 2009, distressed sales
comprised 70% of Miami sales.
Total Miami distressed sales
decreased 35% year-over-year in May
2022, from 60 to 39. Short sales and REOs accounted for 0.5%
and 0.8% year-over-year, respectively, of total Miami sales in May
2022. Short sale transactions decreased 44.2% year-over-year
while REOs decreased 11.8%.
Miami's percentage of
distressed sales are on par with the national figure. Nationally,
distressed sales represented less than 1% of sales in May 2022, unchanged from May 2021
Miami's Percentage of Sales
Continue to Outpace the Nation, State
In Florida, closed sales of
single-family homes statewide totaled 28,861, down 6.9%
year-over-year, while existing condo-townhouse sales totaled 13,265
down 14.4% over 15,491 in May 2021.
Closed sales may occur from 30- to 90-plus days after sales
contracts are written.
Nationally, total existing-home sales transactions completed
transactions that include single-family homes, townhomes,
condominiums and co-ops, fell 3.4% from April to a seasonally
adjusted annual rate of 5.41 million in May. Year-over-year, sales
receded 8.6% (5.92 million in May
2021).
The statewide median sales price for single-family existing
homes was $420,000 up 21.8% 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
$322,000, up 28.8% over the year-ago
figure. The median is the midpoint; half the homes sold for more,
half for less.
Nationally, the median existing-home price all housing types in
May was $407,600, up 14.8% from
May 2021 ($355,000), as prices increased in all regions.
This marks 123 consecutive months of
year-over-year increases, the longest-running streak on record.
Miami Real Estate Attracting Multiple Bids, Buyers Going
Over-List Price
The median percent of original list price received for
single-family homes was 100% in May
2022, up 1.3% from 98.7% last year. The median percent of
original list price received for existing condominiums was 100%, up
4.4% from 95.8% last year.
The median number of days between listing and contract dates for
Miami single-family home sales was
14 days, a 22.2% decrease from 18 days last year. The median time
to sale for single-family homes was 58 days, a 13.4% decrease from
67 days last year.
The median number of days between the listing date and contract
date for condos was 21 days, down 57.1% from 49 days. The median
number of days to sale for condos was 67 days, a 28.7% decrease
from 94 days.
Miami Cash Sales 77.6% More than National Figure in May 2022
Cash sales represented 44.4% of Miami closed sales in May 2022, compared to 38.9% in May2021. About 25%
of U.S. home sales are made in cash, according to the latest NAR
statistics.
Cash buyers are not deterred by rising rates.
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 52.7% of all Miami existing condo sales and 30.4% of
single-family transactions.
To access May 2022 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
(MIAMI) was chartered by the
National Association of Realtors in 1920 and is celebrating 102
years of service to Realtors, the buying and selling public, and
the communities in South Florida.
Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe
Sound area; MIAMI YPN, our
Young Professionals Network Council; and the award-winning
MIAMI Global Council. MIAMI REALTORS represents over 60,000 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 226
international organizations worldwide. MIAMI REALTORS has just launched its new YPN
Global and will host the first-ever YPN Global Congress in
March 2023 in Dubai. MIAMI
has just been selected to host the prestigious FIABCI World
Congress in June 2023. MIAMI's official website is
http://www.MiamiRealtors.com
###
Media Contact
Chris Umpierre, MIAMI Association of Realtors, 3054687047,
chris@miamire.com
Twitter, Facebook
SOURCE MIAMI Association of
Realtors
