Sales prices still rising in Miami at beginning of 2016, latest data shows
Sales prices in Miami continued to rise in January as existing single family homes and condominiums sold close to list price, according to the latest data from real estate agents.
The median sales price for single family existing homes rose 13.7% year on year in January from $237,500 to $270,000, according to the figures from the Miami Association of Realtors, but single family home prices remain at 2004 levels despite four years of increases.
The median sales price for existing condominiums increased 8.8% to $205,000 from $188,500 a year ago. Miami-Dade County existing condo prices have risen in 55 of the last 56 months, a period encompassing more than four and a half years.
‘On the heels of a historic 2015 that saw Miami real estate register its most-ever single-family home sales and its third-most total residential transactions, Miami properties remain in high demand,’ said Mark Sadek, 2016 chairman of the association’s board.
‘Properties are selling for higher prices and near asking. While total residential sales decreased in January, single family home and condominium sales remain consistent with historic averages,’ he added.
Total existing Miami-Dade County residential sales, which posted a record year in 2013 and near record years in 2014 and 2015, decreased 12.1% from 2,043 sales in January 2015 to 1,796 last month. January 2016’s total sales are in the range of Miami sales during the past five Januarys.
Miami-Dade County single family home transactions were 14.4% lower year on year in January, from 963 to 824. Existing condominium sales declined 10% in January 2016, from 1,080 to 972.
‘Strong sales are important for a healthy residential real estate market, but it is not sustainable to set a new all-time sales record each year. Miami-Dade County’s five years of record sales have been unique in the US real estate market. It is anticipated Miami will continue in a sales range consistent with a strong market,’ explained Teresa King Kinney, the association’s chief executive officer.
Miami-Dade has continued to experience a significant year on year decrease in distressed sales. Increased competition from new condominium construction has also played a role in the lower total residential sales. Only 22% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 34.9% in January 2015.
Short sales and REOs accounted for 4.4% and 15.7% respectively, of total Miami sales in January. Short sale transactions dropped 50% year on year while REOs fell 42.2%.
Single family home sales increased 18.3% year on year in January in the $250,000 to $400,000 sector, growing from 241 to 285. This sector represented about 34.6% of all total single family home sales in January 2016. Existing condos priced at $150,000 to $300,000 range saw a 25.1% rise in January sales, increasing from 299 to 374.
The median days on the market for all Miami properties increased in January. New mortgage disclosure rules, known as the TILA-RESPA Integrated Disclosures (TRID), could be playing a role. The average time to close a loan nationally has grown steadily since TRID went into effect, climbing from 46 days in October to 49 days in November and December and to 50 days in January.
In Miami, the median number of days on the market for single family homes increased 41.2% to 72 days in January 2016 from 51 days in January 2015. The median number of days on the market for Miami condominiums was 89 days, a 34.8% increase from 66 days in January 2015.
Statewide closed sales of existing single family homes totalled 16,529 last month, up 2.7% from January 2015, according to Florida Realtors. Florida’s condominium sales totalled 6,942 last month, down 4.8% compared to January 2015.
The statewide median sales price for single family existing homes last month was $199,000, up 13.7% from the previous year and the statewide median price for townhouse-condo properties was $152,000, up 10.9% over the year ago figure.
Miami’s cash buyers represent twice the national average. In January 2016, cash transactions comprised 52.6% of Miami’s total closed sales, which is still double the national average. Cash transactions represented 57.3% of total Miami deals in January 2015. Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 65.7% of condo closings were made in cash in January compared to 37.1% of single family home sales.
At the current sales pace, there is a 5.5 month supply of Miami single family homes, a decrease of 3.9% from January 2015 and continues to be a sellers’ market. There is a 10.2 month supply of condominium inventory, a year on year increase of 16.8% and continues to be a buyers’ market. A balanced market between buyers and sellers offers between six and nine months’ supply of inventory.
Total active listings at the end of January increased 8.3% year on year, from 18,315 to 19,826. Active listings remain about 60% below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 5.8% from 2,356 in January of last year to 2,220 last month. New listings of condominiums increased 7% to 3,414 last month, compared to 3,190 during the same time period in 2014.