[dropcap]T[/dropcap]he Miami real estate market, one of the most popular in the nation with international and domestic buyers, continued to gain momentum in March, as single-family home transactions registered double-digit growth year-over-year and existing condominium sales rose despite an increase in new condo construction, according to a new report by the 35,000-member MIAMI Association of REALTORS® (MIAMI) and the local Multiple Listing Service (MLS) system.
Sales Rise for Single-family Homes, Condos
Single-family home transactions — which set an all-time Miami annual record in 2014 — increased 10 percent year-over-year in March 2015, from 1,129 to 1,242. Existing condominium sales — which posted the second best year in Miami history last year— rose 4.2 percent from 1,413 in March of last year to 1,472 last month. Combined, Miami-Dade County residential real estate sales increased 6.8 percent to 2,714 last month compared to 2,542 a year ago.
“Miami continues to attract international and domestic home buyers looking to live in a global city with world-class amenities and a diversified economy,” said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of the MIAMI Association of REALTORS. “Buyer demand in Miami properties is leading to more sales and higher sale prices.”
Single-family home prices, which again increased in March, remain at affordable 2004 levels despite more than four years of consistent year-over-year increases. Condo prices also increased in March 2015, marking 45 months of growth in the last 46 months. The median sale price for single-family homes increased 10.6 percent, up to $260,000 in March 2015 from $235,000 in March 2014. The average sale price for single-family homes increased 3.2 percent to $473,677 last month from $459,102 during the same time period last year.
The median sale price for condominiums surged 7.5 percent in March to $215,000 from $200,000 a year ago. The average sale price for condos increased 5.8 percent to $398,994 from $377,290 in March 2014.
Miami Real Estate Continues Selling Fast, Close to List Price
Miami single-family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single-family homes sold in March 2015 was 54 days, an increase of 14.9 percent compared to the same period in 2014. The average percent of original list price received was 94.6 percent, down a negligible 0.3 percent from a year earlier.
The median number of days on the market for condominiums sold in March 2015 was 60 days, an increase of 1.7 percent compared to the same period in 2014. The average percent of original list price received was 93.5 percent, a 0.7 percent decrease.
National and State statistics
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 6.1 percent to a seasonally adjusted annual rate of 5.19 million in March from 4.89 million in February—the highest annual rate since September 2013 (also 5.19 million), according to the National Association of REALTORS® (NAR). National sales have increased year-over-year for six consecutive months and are now 10.4 percent above a year ago, the highest annual increase since August 2013 (10.7 percent).
Statewide closed sales of existing single-family homes totaled 24,811 last month, up 24.6 percent over March 2014, according to Florida Realtors. Statewide sales of condominiums totaled 11,083 last month, up 13.7 percent compared to March 2014.
The national median existing-home price for all housing types in March was $212,100, which is 7.8 percent above March 2014. This marks the 37th consecutive month of year-over-year price gains and the largest since February 2014 (8.8 percent), according to NAR.
The statewide median sale price for single-family existing homes last month was $190,000, up 9.2 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in March was $152,000, up 8.6 percent over the year-ago figure.
Miami’s Cash Buyers Represent More than Twice the National Average
Cash deals represented 54.2 percent of Miami’s total closed sales in March 2015, down from 60.5 percent in March 2014. Nationally, just 24 percent of all national housing transactions are made in cash. Since 82 percent of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash buyers continues to reflect South Florida’s ability to attract international buyers.
Condominiums comprise a large portion of Miami’s cash purchases as 67.3 percent of condo closings were made in cash in March compared to 38.6 percent of single-family home sales.
Short Sales Continue to Decline in Miami
While traditional sales remain strong, distressed property transactions declined in Miami due to fewer short sales. In March 2015, only 28 percent of all closed residential sales in Miami were distressed, including REO (bank-owned properties) and short sales, compared to 31.6 percent in March 2014.
Short sales and REOs accounted for 5.6 percent and 22.4 percent, respectively, of total Miami sales in March. Short sale transactions decreased 42.6 percent year-over-year while REOs increased 13 percent. Nationally, distressed sales were 10 percent of sales in March, down from 14 percent a year ago.
Active Listings on the Rise
Seller confidence continues to result in more properties being listed in Miami. Active listings at the end of March increased 8.2 percent year-over-year, from 16,879 to 18,266. Active listings remain about 60 percent below 2008 levels when sales bottomed. Inventory of single-family homes increased 0.4 percent from 6,074 active listings last year to 6,096 last month. Condominium inventory increased 12.6 percent to 12,170 from 10,805 listings during the same period in 2014.
At the current sales pace, there is a 5.3-month supply of Miami single-family homes, a decrease of 4.8 percent from 5.6 months in March 2014. There is a 9.0-month supply of condominium inventory, up from 7.5 months in March 2014, an increase of 18.8 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of Miami single-family homes increased 3.1 percent from 2,090 in March of last year to 2,155 last month. New condominium listings increased 6.0 percent to 3,228 last month, compared to 3,045 during the same time period in 2014.
Nationally, total housing inventory at the end of March climbed 5.3 percent to 2.00 million existing homes available for sale, and is now 2.0 percent above a year ago (1.96 million). Unsold national inventory is at a 4.6-month supply at the current sales pace.
March 2015 New Construction Market Update
Strong sales in the preconstruction condominium Miami market east of Interstate 95 continue to reflect significant demand for new properties, according to the latest New Construction Market Status Report released by Cranespotters.com and MIAMI.
Since 2011, 12 towers with 1,771 units have been completed in Miami-Dade County east of I-95. There are 73 towers with 9,588 units under construction in Miami east of I-95, according to Cranespotters.com and MIAMI’s April 20 report. About 74 towers with 11,354 units are planned, but have not begun development. There are also 56 towers with 8,978 units that have been proposed in Miami east of I-95.
Overall in Miami-Dade County, developers have announced 215 towers with 31,691 units since 2011. Of the above projects in Miami-Dade:
▪101 projects with 117 towers comprising 17,043 units are currently selling.
▪70 percent of units have been sold.
▪The mean minimum price per square foot of these units is $952, compared to $907 last month.
Access March 2015 Miami-Dade Statistical Reports: 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 95 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of five organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, the YPN Council and the award-winning International Council, it represents more than 35,000 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 more than 125 international organizations worldwide. MIAMI’s official website is www.miamire.com.
Note: The MIAMI Association of REALTORS® and the Southeast Florida Multiple Listing Service are the sources for statistics reported by the National Association of Realtors and Florida Realtors.