Real Estate Sales Spiked Up By 55% In Miami

According to Miami-Dade County, the total sales of homes has risen 3.5% in the Q3. From a number of 7,104, it has now gone up to 7,351. While the Miami single-family home transactions surged 9.2%, Miami existing condo sales decreased by 2.2%, from 3,590 to 3,512.

The increase is observed in the diverse neighbourhoods of Miami by  domestic and foreign buyers. The primary reason for this shift is seen because of the consistently low mortgage rates, expanded work-from-home and remote schooling.

Due to the Covid-19 situation, homebuyers from New York and cold weather and tax-burdened Northeastern states are searching and purchasing homes in South Florida. Before the pandemic, the Miami-Dade market was very strong. The city boasted of ow delinquencies, no subprime mortgage crisis, strong demand/low supply, low-interest rates, strong population growth, demand from foreign buyers and tax refugees from tax burdened states, high consumer confidence and a strong job market.

Miami Single-Family Home Luxury Sales Jump 55.3% in 3Q 2020

There has been an increase of up to 55.3% in the Miami-Dade County single-family home luxury ($1-million-and-up). Miami-Dade County condo luxury sales increased by 13.2% to 215 transactions in 3Q 2020.

This was due to various reasons like low-interest rates; a record-high S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.

Median Home Prices Rise in 3Q 2020

One will observe a continuous rise in prices in Miami-Dade due to the strong demand coupled with limited supply.

Miami single-family home median prices rose 13.5% year-over-year, from $370,000 to $420,000. Median prices have now increased for 35 consecutive quarters, a streak spanning 8.75 years. Miami existing condo median prices rose 7.8% year-over-year, from $245,000 to $264,000.

According to Knight Frank's 2019 The Wealth Report, In Miami, $1 million can net homebuyers 93 square meters of prime property.

Dollar Volume Jumps in 3Q 2020

There has been an increase of 39.6%, from $2 billion to $2.8 billion in Miami single-family home dollar volume. Miami condo dollar volume increased by 10.5% to $1.5 billion. The sales do not include Miami's multi-billion-dollar new construction condo market.

Only 3.3% of all closed residential sales in Miami were distressed in 3Q 2020, including REO (bank-owned properties) and short sales, compared to 5.7% in 3Q 2019. In 2009, distressed sales comprised nearly 70 per cent of Miami sales.

Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas

One of the biggest indicators of real estate is a months' supply of inventory. Top Miami-Dade County neighbourhoods with the lowest months of supply of inventory (at least 100 new pending sales) in 3Q 2020:

Single-Family Homes

Princeton, a community in south Miami-Dade south of Cutler Bay, had 0.9 months supply.

Homestead, a south Miami-Dade city, had 1.3 months supply.

Cutler Bay, a town in south Miami-Dade County, had 1.4 months supply.

Richmond West, a South-Dade community west of Palmetto Bay, had 1.5 months supply

The Hammocks, a community in south Miami-Dade east of The Crossings, had 1.5 months supply.

Condominiums

Kendale Lakes, a south Miami-Dade community west of South Miami, had 1.4 months supply.

The Hammocks, a community in south Miami-Dade east of The Crossings, had 1.8 months supply

Country Club, a north Miami-Dade community west of Miami Gardens, had 1.9 months supply

Homestead, a south Miami-Dade city, had 2.8 months supply

Fontainebleau, a community in south Miami-Dade County north of Westchester, had 3.8 months supply

Seller's Market for Single-Family Homes, Buyer's Market for Condos

At the current sales pace, the number of active listings represents 3.8 months of inventory for single-family homes and 13.8 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.

Miami real estate had 18,187 active listings in 3Q 2020, a 15.7% decrease from the 21,586 listings at the same time last year.

Miami Homes Selling Close to List Price

The median per cent of original list price received was 96.2% for single-family homes and 94.3% for condos in 3Q 2020.

The median time to sale for single-family homes decreased 6%, from 100 days to 94. The median time to sale for existing condos decreased 1.7%, from 118 to 116.

Miami Cash Sales Higher than National Figure

There has been a higher cash sales in Miami, approx 27.3% of Miami closed sales in 3Q 2020, compared to 31.9% in 3Q 2019. This shows Miami’s imminent position in the American real estate market for foreign buyers, who tend to purchase with all cash.

Cash sales accounted for 39.6% of all Miami existing condo sales and 15.9% of single-family transactions.