Miami’s single-family home market registered its most robust sales month since December, and median sales prices for all housing types rose in April, according to a new report by the 35,000-member MIAMI Association of REALTORS® (MIAMI) and the local Multiple Listing Service (MLS) system.
Miami sold 1,247 single-family homes in April 2015, the most transactions for the market in the month of April since the 2007-09 global recession. In comparison, Miami had 950 sales in April 2012, 1,094 in April 2013, and 1,155 in April 2014. Last month’s sales total marks the most single-family transactions in a month since December 2014 when Miami had 1,250 sales.
“The continued stability in Miami’s job market and low interest rates are improving buyer confidence,” said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of the MIAMI Association of REALTORS. “Not only are we seeing more single-family home sales in Miami, but we are seeing more homes and condos listed as seller confidence grows.”
Existing Home Sales Rise, Condos Decrease
Single-family home transactions — which set an all-time Miami annual record in 2014 — increased 8.0 percent year-over-year in April 2015, from 1,247 to 1,155. Existing condominium sales — which posted the second best year in Miami history last year despite an increase in new condo construction — declined 6.8 percent from 1,557 in April of last year to 1,451 last month. Combined, Miami-Dade County residential real estate sales decreased 0.5 percent to 2,698 last month compared to 2,712 a year ago.
Access to mortgage loans for existing condominium buyers remains limited. The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening. Of the 8,523 condominium projects in Miami-Dade and Broward Counties, only 29 received FHA loans, according to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA. Just .0034 percent of local condo projects are getting FHA loans. The U.S. average is 30 percent.
“The MIAMI Association of REALTORS has created several initiatives to expand financing options for existing condo buyers, as we believe this could significantly increase the ability for many qualified prospective buyers to purchase a home,” said Danielle Blake, MIAMI’s Senior Vice President of Government Affairs & Housing.
Prices Rise Again
Single-family home prices, which again increased in April, remain at affordable 2004 levels despite more than three years of consistent year-over-year increases. Condo prices also increased in April 2015, marking 46 months of growth in the last 47 months. The median sale price for single-family homes increased 7.0 percent, up to $260,000 in April 2015 from $243,000 in April 2014. The median sale price for condominiums increased 3.1 percent in April to $199,000 from $193,000 a year ago.
Homes, Condos Selling Close to Asking Price
The average percent of original list price received for single-family homes was 94.6 percent, down a negligible 0.1 percent from a year earlier. The median number of days on the market for single-family homes sold in April 2015 was 43 days, equaling last year’s figure.
The average percent of original list price received for existing condominiums was 93.1 percent, a 0.5 percent decrease. The median number of days on the market for condominiums sold in April 2015 was 63 days, an increase of 14.5 percent compared to the same period in 2014.
National and State statistics
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops declined 3.3 percent to a seasonally adjusted annual rate of 5.04 million in April from an upwardly revised 5.21 million in March, according to the National Association of Realtors. Despite the monthly decline, sales have increased year–over–year for seven consecutive months and are still 6.1 percent above a year ago.
Statewide, closed sales of existing single-family homes totaled 25,206 last month, up 17.9 percent over April 2014, according to Florida Realtors. Florida’s closed sales for condominiums totaled 11,643 last month, up 8.1 percent compared to April 2014.
The national median existing-home price for all housing types in April was $219,400, which is 8.9 percent above April 2014. This marks the 38th consecutive month of year–over–year price gains and is the largest since January 2014 (10.1 percent).
The statewide median sales price for single-family existing homes last month was $195,000, up 11.4 percent from the previous year. The statewide median price for townhouse-condo properties in April was $155,000, up 10.3 percent over the year-ago figure.
Miami’s Cash Buyers Represent More than Twice the National Average
Cash deals represented 51.9 percent of Miami’s total closed sales in April 2015, down from 59.3 percent in April 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 65.8 percent of condo closings were made in cash in April compared to 35.7 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 April 2015, only 28.6 percent of all closed residential sales in Miami were distressed, including REO (bank-owned properties) and short sales, compared to 32.6 percent in April 2014.
Short sales and REOs accounted for 5.0 percent and 23.6 percent, respectively, of total Miami sales in April. Short sale transactions decreased 47.7 percent year-over-year while REOs increased 1.6 percent.
Nationally, distressed sales were 10 percent of sales in April, below the 15 percent share 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 April increased 6.1 percent year-over-year, from 17,067 to 18,113. Active listings remain about 60 percent below 2008 levels when sales bottomed. Inventory of single-family homes decreased 2.5 percent from 6,034 active listings last year to 5,882 last month. Condominium inventory increased 10.9 percent to 12,231 from 11,033 listings during the same period in 2014.
At the current sales pace, there is a 5.1-month supply of Miami single-family homes, a decrease of 7.8 percent from 5.5 months in April 2014. There is a 9.1-month supply of condominium inventory, up from 7.7 months in April 2014, an increase of 17.7 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of Miami single-family homes decreased 3.6 percent from 2,150 in April of last year to 2,072 last month. New condominium listings declined 1.0 percent to 3,051 last month, compared to 3,082 during the same time period in 2014.
Nationally, total housing inventory at the end of April increased 10.0 percent to 2.21 million existing homes available for sale, but is still 0.9 percent below a year ago (2.23 million). Unsold inventory is at a 5.3–month supply at the current sales pace, up from 4.6 months in March.
May 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 313 floors and 1,977 units have been completed in Miami-Dade County east of I-95 since 2011, according to Cranespotters.com and MIAMI’s May 18 report. There are 75 towers with 1,644 floors and 9,399 units under construction in Miami east of I-95. About 71 towers with 1,731 floors and 11,130 units are planned, but have not begun development. There are also 57 towers with 1,472 floors and 9,024 units that have been proposed in Miami east of I-95.
Overall in Miami-Dade County, developers have announced 215 towers with 5,160 floors and 31,530 units since 2011. Of the above projects in Miami-Dade:
▪103 projects with 119 towers comprising 17,199 units are currently selling.
▪71 percent of units have been sold.
▪The mean minimum price per square foot of these units is $949, compared to $952 last month.
Access April 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.