According to Miami Association of Realtors residential real estate transactions for condos as well as single family homes in Miami Dade County has posted strong third quarter in 2015 compared to the same period of year 2014. Number of transactions for both single family homes and resale condominiums and the median prices grew , states the new report in Multiple Listing System. We saw a 2.3 percent increase in residential transactions where 7811 total residential sales is registered in 3rd Q of 2015 versus total 7632 sales of the 3rd Q of 2014. Despite an increasing condo inventory supply due to new construction boom east of I-95 , existing condo transactions increased by 0.8 percent from 4,080 to 4,112. Single family transactions grew a good 4.1 percent from 3522 to 3699.
Overall condition of residential real estate market remain healthy and still quite a bargain compared to other metropolitan major cities. If we compare such world class global cities as New York, Los Angeles, Hong Kong or London, we will see that prices for Miami single family home are still at 2004 level, the same can be said about condominium sector. In addition to favorable pricing coupled with still historic low mortgage interest rates, Miami has never looked so attractive as a place to live, have a second home or invest. Currently the interest rate for 30 year fixed-rate mortgage is averaging 3.95 percent for the month of November 2015.
Here are some numbers to compare: National Association of Realtors analyzed the cost of 120-square meter condo in a number of foreign cities based on prices reported in Global Property Guide. A 120-square meter condo in Miami-Fort Lauderdale area cost $179,900 on average. The price for the same condo in London ( $ 960,840) , Hong Kong ( $776,280) , New York ( $ 1.6 M ) were at least 5 times higher.
The median price for single-family homes in Miami-Dade County increased to $273,200 in the third quarter, a 9.3 percent jump from $250,000 in the same period last year. The median price for existing condominiums increased 4.8 percent year-over-year from $189,900 to $199,000. Miami-Dade County has now seen 15 consecutive quarters of price growth for single-family homes and condominiums.
Total number of Miami active listings was also on the rise in 3rd Q 2015. Seller confidence continued to grow into the third quarter. Miami real estate had 17,837 active listings in the 3rd Q , a 2.0 percent increase from the 17,480 for the same time period last year.
The inventory for single-family homes decreased 5.4 percent compared to the same period from last year. A record-level of single-family home sales in Miami has created the lower inventory. A total of 10,799 single-family homes were sold in Miami from January 2015 and September 2015, which puts the market on pace for 14,396 transactions. The annual Miami record is 13,521 sales, established last year.
Miami existing condos, which are also having a banner year with 12,265 existing condos sales from January 2015 to September 2015, saw a 6.3 percent year-over-year increase in active listings in the third quarter of 2015.
The Miami single-family home sector is in a seller’s market, while existing condos are leaning toward a buyer’s market. At the current sales pace, the number of active listings represents 5.1 months of inventory for single-family homes and 8.7 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
The median days on the market for single-family home listings during the third quarter was 39 compared to 45 a year ago, a decrease of 13.3 percent. The median days on the market for condominiums was 60 compared to 57 last year, an increase of 5.3 percent.
New listings for Miami single-family homes decreased 0.2 percent, from 6,237 to 6,223. New listings for condominiums decreased by 1.5 percent year-over-year from 8,366 to 8,238.
Miami continues to register more than double the U.S. average of residential cash buyers. About 48.8 percent of Miami closed sales in the third quarter of 2015 were all cash. In comparison, just 24 percent of U.S. home properties are made in cash, according to the latest NAR statistics. About 54.9 percent of all Miami housing transactions were made in cash in the third quarter of 2014.
Statewide, cash sales represented 41 percent of all closed sales in the third quarter of 2015, down from 46 percent during the same period last year.
Miami’s existing condo market has more cash-only transactions with 62.5 percent of all transactions made in cash. In the single-family sector, about 33.5 percent of all transactions are made in cash.
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. About 81 percent of international buyers in South Florida pay all-cash, compared to 60 percent of international buyers purchasing across the U.S., according to the 2014 Survey of International Home Purchases conducted by NAR for MIAMI.by