Non-distressed Miami single-family home sales surged 11.3 percent in June 2016, according to the Miami Association of Realtors, as median home prices grew for the 55th consecutive month.
Mark Sadek, the 2016 M.A.R. chairman of the board, said, "Rising non-distressed home sales are a sign of a healthy market." "For the sixth month in a row, non-distressed Miami single-family home transactions have grown. Miami is also seeing significant demand for existing single-family houses and condos in the mid-price range." companies
According to newly released data, median sale prices for existing single-family houses in Miami-Dade County jumped 12.5 percent to $315,000 in June. Existing condominiums are now worth $220,000, up 7.3 percent. Prices of single-family homes have grown for 55 months in a row. Condo prices have risen in 59 of the last 61 months, a period of nearly five years.
Despite the price increases, Miami properties remain at 2004 levels, making them a significant bargain when compared to other worldwide cities. According to the National Association of Realtors, a 120-square-meter condo in Miami-Fort Lauderdale-Miami Beach costs on average $149,900. (NAR). Prices are at least five times higher in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million).
Low borrowing rates have attracted buyers in the past. According to Freddie Mac, the average 30-year conventional fixed-rate mortgage commitment rate was 3.57 percent in June, the lowest since May 2013. (3.54 percent).
Total Sales in Miami are on par with historical averages.
Total existing home sales in Miami-Dade County fell 8.6% year over year from 2,886 to 2,639. This follows a record year in 2013 and near-record years in 2014 and 2015.
Single-family home sales in Miami-Dade County fell 6.3 percent in June, from 1,383 to 1,296. While the sales total is lower than previous year, it is still a good amount for the peak of the home-buying season, and it is more than the 1,280 properties sold in June 2014, a near-record year for Miami transactions. Existing condominium sales, which fell 10.6% from 1,503 to 1,343, are up against the new building market, which is still adding inventory.
Because of a major inventory constraint for properties priced under $300,000, single-family home sales are falling. Single-family homes priced under $300,000 have seen a 53 percent decline in inventory year over year. For example, supply in the $250,000 to $300,000 range has dropped nearly 50% in the last three years, from 4.9 months in June 2013 to 2.7 months in June 2016.
A factor is the scarcity of available distressed properties. Total distressed sales in Miami have dropped 46.1 percent year over year, from 770 in June 2015 to 415 this month. Last month, only 15.7 percent of all concluded residential sales in Miami, including REO (bank-owned properties) and short sales, were distressed, compared to 26.7 percent in June 2015. Distressed sales accounted up roughly 70% of Miami sales in 2009.
In June 2016, short sales and REOs accounted for 3.1 and 12.6 percent of total Miami sales, respectively. Short sales were down 47.8% year over year, while REOs were down 45.7 percent.
In June, non-distressed single-family home sales increased by 11.3 percent, from 986 to 1,097. 41.6 percent of the market is made up of non-distressed properties. Single-family home prices in non-distressed areas are also climbing, jumping 5.4 percent from $313,000 to $330,000.
According to the National Association of Realtors, distressed sales accounted for 6% of all transactions in June, down from 8% a year ago.
In June 2016, existing Miami residential homes sold for $1.15 billion in total sales volume. The amount does not include new construction condo sales, which were $1.2 billion in June 2015.
The number of transactions at popular price points is increasing.
In June, the number of single-family homes valued between $250,000 and $600,000 increased by 10.7% year over year, from 606 to 671. In June 2016, the sector accounted for 51.8 percent of all single-family home sales in Miami.
In June, sales of existing condos priced between $150,000 and $400,000 increased by 2.7 percent year over year, from 659 to 677. In June 2016, this segment accounted for 50.4 percent of all existing condo property sales in Miami.
Miami real estate is selling at a faster pace and for a lower price than it was a year ago.
The median number of days between listing and contract dates for Miami single-family home sales was 47 days, down 13.0% year over year. For single-family homes, the median number of days between listing and closing decreased by 3.6 percent to 106 days.
The median time to contract for condos fell by 4.3 percent year over year to 67 days. Between the listing date and the closing date, the median number of days climbed by 0.8 percent to 119 days.
In June 2016, the median percent of initial list price collected for single-family homes was 95.5 percent, up 0.1 percent from the previous month. For existing condominiums, the median percent of original list price obtained increased by 0.3 percent to 94.2 percent.