How high will they go?
The median sales price of single-family homes in Miami-Dade surged to an all-time high of $450,000 in November, the third consecutive month of setting a new record and continuing a nine-year streak of monthly increases.
According to the Miami Association of Realtors, median sales prices grew 23% year-over-year from November 2019, when the figure was a now-nostalgic $385,000.
In Broward, demand was equally high. The median sales price of single-family homes there jumped 13.3% year-over-year in November 2020, increasing from $375,000 to $425,000 — equaling the all-time record high set in September 2020. Existing condo prices in Broward increased 20% year-over-year, from $170,000 to $204,000.
The overall number of home sales in Miami-Dade was 2,459, a 20% jump from November 2019. Overall number of existing condo sales showed a similar increase year-over-year of 23%, from 1,061 to 1,305.
The percentage of all-cash sales dipped to 29% from 35% in November 2019, an indication that fewer foreign buyers are competing with locals. But Miami-Dade still had the highest percentage of cash transactions in the U.S. The national percentage is 20%.
“The pandemic has prioritized the importance and value of our homes,” Miami Association of Realtors Chairman of the Board Jorge L. Guerra Jr. said in a press release. “More than ever, home has become the focal point of our lives, and consumers want more space and convenience. Remote work, home schooling, record-low mortgage rates, low inventory and purchases from tax-burdened Northeastern home buyers are some of the factors boosting Miami real estate.”
ALL PRICE RANGES SHOWED GROWTH
The increase in the number of home and condo sales cut across all price brackets. Single-family homes priced between $400,000-$600,000 jumped 50.4% year-over-year to 352 transactions in November 2020. Existing condo sales priced between $400,000-$600,000 increased 68.3% to 138 transactions.
The growth was even more dramatic in the luxury market. The number of sales of single-family homes priced at $1 million and up grew 120.3% year-over-year, to 163 transactions in November 2020. Sales of existing condos priced at $1 million and up increased 88.2% year-over-year, to 96 transactions.
Befitting the high demand, the median number of days between listing and contract dates for single-family home sales was 23 days, a 57.4% decrease from 54 days last year. The median number of days between the listing date and closing date for condos was 50 days, down 35.9% from 78 days.
Real estate broker Neal Oates, owner of the Miami-based World Renowned Real Estate, said speed is essential for buyers venturing into the Grand Prix Miami market.
“Go ahead and be quick to make a decision when you see something you like,” he said. “But you should really begin doing the work before you look at a property. Find out exactly what you can afford from a lender and get pre-approved. Then you only need to have the property approved.”
The monthly inventory of single-family homes in Miami-Dade stands at a scant 3.6 months (a healthy market should have between 6-9 months of housing stock). New listings for homes in November dipped 3% year-over-year, from 1,438 to 1,393. The scarcity is bound to continue to keep driving sale prices up.
The inventory for existing condominiums in Miami-Dade dipped 1.5% to 13 months, which means that market is still driven by buyers. New listings of condominiums increased 4.4%, from 2,005 to 2,094.
Source: Miami Herald