Miami Single-Family Home Sales Jump Double Digits in July 2019 and experience 7 consecutive years of appreciation.
The Miami real estate continues to be a strong real estate investment. The housing market in Miami is estimated at a value of $864.2 Billion and is predicted to increase by 4% annually.
In the month of July, Miami-Dade County single-family home sales rose double digits as median prices, dollar volume and luxury transactions increased for all properties, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
According to the Miami Association of Realtors, Miami-Dade County home sales increased 6.9% year-over-year for the month of July, from 2,329 to 2,490.
The results for Luxury faired better in the Miami real estate market with single-family home luxury sales ($1-million-and-up) up by 23.1% to 112. Although overall condo sales saw marginal progress from this time last year Miami condo luxury transactions increased 15.9% to 73.
Worldwide Properties co-founder, CEO and broker J. “Eddy” Martinez says the Tax Cuts and Jobs Act signed into law December 2017 has been driving sophisticated buyers in droves. “Homeowners in states including New York, New Jersey and Connecticut— places where the state income and property taxes combined are much higher—have been calling on us more than ever,” he explains. “They are aggressively looking for high-end residences in Florida.”
Miami Condo Growth Inhibited by Lack of Financing Options
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
The above could change as a result of a new condo approval process. The new guidance extends certifications from two years to three, allows for single-unit mortgage approvals and increases the allowable number of FHA loans in a project. The changes should yield thousands of new homeownership opportunities. The rule will go into effect in mid-October.
Miami-Dade County single-family home prices increased 0.7% in July 2019, increasing from $369,450 to $372,000. Miami single-family home prices have risen for 92 consecutive months, a streak of 7.6 years. Existing condo prices increased 2.7%, from $243,000 to $249,500. Condo prices have increased or stayed even in 94 of the last 98 months.
Despite the price increase, Miami remains a bargain compared to other global cities.
In Miami, $1 million can net homebuyers 93 square meters of prime property, according to Knight Frank’s 2019 The 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.
Miami Distressed Sales Stay Low, Reflecting Healthy Market
Only 4.9% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 5.8% in July 2019. In 2009, distressed sales comprised 70% of Miami sales. Total Miami distressed sales decreased by 7.5%, from 134 to 124.
The median number of days between listing and contract dates for Miami single-family home sales was 52 days, a 15.6% increase from 45 days last year. The median number of days between the listing date and closing date for single-family homes was 98 days, a 7.7% percent increase from 91 days.
The median time to contract for condos was 72 days, a 5.3% decrease from 76 days last year. The median number of days between listing date and closing date decreased 3.4% percent to 113 days.
Miami’s Cash Buyers Represent Almost Double the National Figure
Miami cash transactions comprised 30.3% of July 2019 total closed sales, compared to 35.8% last year. Miami cash transactions are almost double the national figure (19%).
Condominiums comprise a large portion of Miami’s cash purchases as 42.7% of condo closings were made in cash in July compared to 18.3% of single-family home sales.
Miami Real Estate Inventory up Slightly Year-Over-Year
Inventory of single-family homes increased 2.7% in July from 6,318 active listings last year to 6,489 last month. Condominium inventory increased 1.3% to 15,378 from 15,181 listings during the same period in 2018.
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