Miami Total Home Sales Priced Between $600K to $1M Soar; Miami Real Estate Nears 12 Years of Consecutive Home Price Appreciation

MIAMI — Miami-Dade County total home sales priced between $600K to $1M jumped double digits year-over-year, according to August 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

 

Miami total home sales priced from $600K to $1M increased 15.5% year-over-year in August 2023, from 451 to 521 transactions. Miami single-family homes and existing condos priced in the same price range increased 26.8% and 0.5%, respectively, year-over-year in August 2023.

 

“Domestic and international homebuyers continue to have high demand for Miami real estate and, if priced correctly, properties are selling with a median time to contract of 28 days,” MIAMI Chairman of the Board Ines Hegedus-Garcia said. “Active inventory and new listings remain near all-time lows, but the good news is more supply is on the way as Miami leads the nation for most apartments under construction with many opening in 2024.”

 

South Florida Showing Appointments Increase for the Fourth Consecutive Month

Miami remains in a high-demand, low-supply market with showing appointments surging and total existing inventory and new listings declining.

 

South Florida showing appointments increased for the fourth consecutive month, increasing 2% year-over-year, from 215,662 in August 2022 to 219,484 in August 2023.

 

Miami total home sales decreased 13.1% year-over-year in August 2023, from 2,505 transactions in August 2022 to 2,178 in August 2023, because of elevated mortgage rates and lack of supply in certain price points. Miami August 2023 total home sales are down 8.3% year-over-year in comparison to pre-pandemic August 2019.

 

The statistics don’t include South Florida’s robust developer new construction market and volume.

 

Miami single-family home sales decreased 8.1% year-over-year, from 1,032 in August 2022 to 948 in August 2023. Miami existing condo sales decreased 16.5% year-over-year, from 1,473 in August 2022 to 1,230 in August 2023.

 

Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of September 14. That’s up from 7.12% the prior week and 6.02% one year ago.

 

“Buyers seem to be realizing that home prices aren’t coming down and are more mentally prepared to make an offer on a home that meets their financial condition and needs,” MIAMI REALTORS® Chief Economist Gay Cororaton said.

 

Miami Leads the Nation in New Apartments Under Construction as a Share of Total Inventory

With existing inventory near all-time lows, the Miami market would have more total sales if it had more supply and the market could start to realize that as early as next year.

 

According to LoopNet, Miami leads the nation in new apartments under construction as a share of total inventory. Most of the new units are expected to open in 2024. Most of the new apartments are in Downtown Miami, where many new-to-market FinTech companies have relocated. The new apartments will be in new 4-and-5-star buildings.

 

The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 9,467. Total inventory is down 56.2% from pre-pandemic (August 2019), from 21,624 to 9,467.

 

Total active listings at the end of August decreased 6.4% year-over-year, from 10,113 to 9,467.

 

Inventory of single-family homes decreased 19.7% year-over-year in August 2023 from 3,813 active listings last year to 3,062 last month. Condominium inventory increased 1.7% year-over-year from 6,300 to 6,405 listings during the same period in 2022.

 

New listings of Miami single-family homes decreased 7.8% from 1,573 to 1,450 year-over-year. New listings of condominiums decreased 5.5%, from 2,118 to 2,002 year-over-year.

 

Months’ supply of inventory for single-family homes is 3.5 months, which indicates a seller’s market. Inventory for existing condominiums is 5.4 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.

 

Nationally, total housing inventory registered at the end of August was 1.1 million units, down 0.9% from July and 14.1% from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.

 

Miami Nears 12 Years of Consecutive Home Price Appreciation

Miami-Dade County single-family home median prices increased 12.5% year-over-year in August 2023, increasing from $551,250 to $620,000. Miami single-family median prices have risen for 141 consecutive months (11.75 years), the longest running-streak on record. Existing condo median prices increased 10.9% year-over-year from $375,000 to $416,000. Condo median prices have stayed even or increased in 141 of the last 147 months.

 

Miami ranks No. 4 in the U.S. for annual home price appreciation, according to the latest US CoreLogic S&P Case-Shiller Index.

 

Historically, a market with less than 6 months of supply will have appreciating prices. Miami single-family homes and existing condos are at 3.5 and 5.4 months, respectively.

 

Wealth Migration

Local home prices have risen with South Florida’s wealth migration. In-migration boosted South Florida household income by $16 Billion in 2021, according to MIAMI REALTORS® analysis of the 2020-2021 migration data released by the Internal Revenue Service.

 

New households moving into Miami-Dade in 2021 had an average adjusted gross income of $229,300. New households moving into Broward County had an average adjusted gross income of $102,600. New households moving into Palm Beach County had an average adjusted gross income of $242,200.

 

Miami-Dade County’s population increased year-over-year in 2022, according to new U.S. Census Bureau population estimates. Miami-Dade is one of only 11 counties in the U.S. that are back to positive population growth in 2021-2022 after pandemic-driven population declines impacted the entire country, according to a new Brookings Institute report.

 

Miami Real Estate Posts $265.7 Million Local Economic Impact in August 2023
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 $122,000, according to NAR. Miami-Dade sold 2,178 homes in August 2023 for a local economic impact of $265.7 million.

 

Miami total dollar volume totaled $1.85 billion in August 2023. Single-family home dollar volume increased 0.2% year-over-year to $1 billion. Condo dollar volume increased 6.63% year-over-year to $854 million.

 

Miami Distressed Sales Remain Low, 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 1.9% in August 2022. In 2009, distressed sales comprised 70% of Miami sales.

 

Short sales and REOs accounted for 0.3% and 0.9% year-over-year, respectively, of total Miami sales in August 2023.

 

Miami’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in August 2023, virtually unchanged from last month and the prior year.

 

Miami Median Price Appreciation Outperforming Nation, State

In Florida, closed sales of single-family homes statewide totaled 22,917 in August 2023, down 7.9% year-over-year, while existing condo-townhouse sales totaled 9,279, down 7.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

 

Nationally, total existing-home sales transactions slid 0.7% from July to a seasonally adjusted annual rate of 4.04 million in August. Year-over-year, sales fell 15.3% (down from 4.77 million in August 2022).

 

The statewide median sales price for single-family existing homes was $415,000, up 2% 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 $324,000, up 6.2% 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 for housing types in August was $407,100, an increase of 3.9% from August 2022 ($391,700). All four U.S. regions posted price increases.

 

Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 97.4% in August 2023. The median percent of original list price received for existing condominiums was 96.5%.

 

The median number of days between listing and contract dates for Miami single-family home sales was 23 days, up from 21 days last year. The median time to sale for single-family homes was 64 days, up from 61 days last year.

 

The median number of days between the listing date and contract date for condos was 34 days, up from 23 days. The median number of days to sale for condos was 76 days, down from 65 days.

 

Miami Cash Sales 49.3% More than National Figure
Cash sales represented 40.3% of Miami closed sales in August 2023, compared to 39.7% in August 2022. About 27% 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 49.8% of all Miami existing condo sales and 27.9% of single-family transactions.

 

To access August 2023 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 103 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 nearly 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 256 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com

 

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