The price of a Miami house hit a record in January for the fifth month in a row while Broward prices remained stable.
In Miami-Dade, the median sales price for a single-family home hit $469,500, up more than 25% from January 2020 and up more than 3% from the December median of $454,900. In both counties, condos remained a relative bargain.
Miami-Dade’s single-family prices have been on an upward march since September that will likely continue as inventory continues to shrink.
“We are seeing strong pending sales, which is an indication to us that there are still a lot of buyers who want to be in this market,” Porter said by email.
The issue, said Porter, is simply one of high land values and limited choices.“Our peak price in 2006 for a single-family home was $374,000. This price difference is reflective of the fact that we have no land left to build.
“Our condo market has just been catching up from the last 12 years since the recession. The median price of a condo in 2007 was $260,000. Fast forward to today, the median price of a condo at the end of December 2020 was $270,000, which is just 7% over where we were 12 years ago,” she said.
The current sales flurry is driven by three types of buyers, Porter said: Millennials, first-time homeowners and junior-level executives working remotely.
Florida sees 660 new residents per day while 16 other states — including California, Conneticut and New York — are losing residents, according to U.S. Census Bureau and the Pew Research Center. “This growth will keep pressure on our inventory as well as pricing,” Porter said.
Despite rising sales prices, interest rates are giving buyers some power, Porter said, with Fannie Mae’s interest rate at 2.14% for a 30-year mortgage.The total number of home sales increased year-to-year by 19.1%, from 1,857 in January 2020 to 2,211 in January 2021. Condo sales grew by 28.1% while single-family home sales grew by 9.1%. Miami-Dade has 11.3 months of supply of condos but only 3.1 monthly of supply for houses. A balanced market consists of six-to-nine months of inventory.
The median sales price of a condo rose by 14.3% year over year, from $245,000 in January 2020 to $280,000 in January 2021. The median price of a single-family home soared by 25.2%, from $375,000 to $469,500.
Condos closed at 94.3% of the listing price, up from 93.4% last year. Houses closed at 96.8% of the listing price, up from 95.6% in January 2020.
Cash buyers comprised 33.1% of total sales, down year-over-year from 33.8%. Still, the percentage of all-cash buyers was well above the national figure of 19%.
Source: The DeFortuna Team