Despite the ongoing global pandemic, Miami-Dade County recorded the fourth-most annual single-family home sales in history and total existing home sales finished ninth all-time in 2020, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami registered 13,250 single-family home sales in 2020, a negligible 0.5% year-over-year decline from 2019. Only 2015 (13,898 transactions), 2014 (13,508) and 2019 (13,322) had more annual Miami single-family home sales. MIAMI and the MLS have been tracking county sales since 1994.
“The Miami real estate market displayed its resiliency in 2020, pivoting in the wake of a global pandemic to have one of its top sales years in history,” MIAMI Chairman of the Board Jennifer Wollmann said. “Pent-up demand, record-low mortgage rates, Florida’s low taxes, low inventory and purchases from home buyers in tax-burdened states, and increased interest from international buyers are all boosting Miami real estate.”
Lack of supply is expected to improve later this year as housing starts increase and sellers become more comfortable listing properties and allowing strangers in their homes once the COVID-19 vaccine is widely distributed.
Total Home Sales Finish with Ninth-Most Annual Sales
Miami-Dade County finished with the ninth-most annual total home sales in 2019. Miami had 26,345 total home sales in 2020, a year-over-year decline of 3.9% from 2019.
2013 (30,032 transactions), 2014 (29,845), 2015 (29,795), 2012 (27,846), 2019 (27,436), 2011 (26,812), 2018 (26,796) and 2016 (26,768) had more annual Miami total home sales.
Existing Condominiums Post 11th-Best Sales Year
Miami existing condominiums posted the 11th-best sales year in history despite competing with Miami’s multi-billion-dollar new condo construction market. A total of 13,095 Miami existing condominiums were sold in 2020, a 7.2% decrease from 14,114 in 2019.
Miami real estate’s top sales years for existing condos: 2013: 17,120; 2012: 16,383; 2014: 16,337; 2011: 16,187; 2015: 15,897; 2019: 14,114; 2018: 13,864; 2016: 13,604; 2010: 13,321; 2017: 13,13 and 2020: 13,095.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 13 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
A better condo approval process is expected to increase sales. The guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR have championed, are expected to generate increased homeownership opportunities.
Miami Luxury Sales Post Major Gains in 2020
Luxury ($1 million-and-up) single-family home sales jumped 41.2% year-over-year to 1,447 transactions in 2020.
Luxury condo transactions increased 1.6% year-over-year to 837 sales in 2020.
Record-low interest rates; a robust 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.
Miami Median Prices, Dollar Volume Rise in 2020
Miami existing single-family homes finished 2020 with a median sales price of $402,000, up 10.1% from $365,000 the previous year. The Miami median price for existing condominiums in 2020 was $264,000, an increase of 7.8% from $245,000 in 2019.
Single-family home dollar volume increased 25.6% year-over-year, from $7.3 billion to $9.2 billion. Condo dollar volume increased 1.7%, from $5.6 billion to $5.7 billion.
Hottest Miami-Dade Neighborhoods at Year-End 2020
Months’ supply of inventory, which is an important indicator of consumer demand and market performance, reflects limited supply in many neighborhoods and price ranges. As a result, lack of supply is also impacting property sales, particularly for single-family homes.
Top Miami neighborhoods with the lowest months of supply of inventory with at least 100 new pending sales at year-end 2020:
Single-Family Homes
1. The Crossings, a south Miami-Dade community west of Kendall, had 0.8 months supply
2. Three Lakes, a south Miami-Dade community west of Palmetto Bay, had 0.8 months supply
3. Country Walk, a south Miami-Dade community west of Palmetto Bay, had 1.0 months supply
4. Cutler Bay, a south Miami-Dade city south of Palmetto Bay, had 1.0 months supply
5. Country Club, a north Miami-Dade community north of Miami Lakes, had 1.1 months supply
Condominiums
1. Three Lakes, a south Miami-Dade community west of Palmetto Bay, had 1.1 months supply
2. The Hammocks, a south Miami-Dade community west of The Crossings, had 1.5 months supply
3. Kendale Lakes, a south Miami-Dade community located north of The Crossings, had 1.6 months supply
4. Miami Lakes, a north Miami-Dade town east of Doral, had 2.1 months supply
5. Country Club, a north Miami-Dade community north of Miami Lakes, had 2.1 months supply
Miami Real Estate Selling Close to List Price
The average percent of original list price received for single-family homes in 2020 was 96.2%, an increase of 0.8% from a year earlier. The median number of days to contract for Miami single-family homes decreased 21.4% to 44 days in 2020 from 56 days in 2019.
The median number of days to contract for condominiums sold in 2020 was 72 days, a decrease of 6.5% from 77 days. The average percent of original list price received was 94.2%, a 0.6% year-over-year increase.
State Year-End Statistics
Statewide closed sales of existing single-family homes totaled 310,378 at the end of 2020, up 5.8% compared to the 2019 figure, according to Florida Realtors. The statewide median sales price for single-family existing homes at year’s end was $290,000, up 9.6% from the previous year.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 119,336 units sold statewide in 2020, up 2.5% over 2019. The statewide median price for condo-townhouse properties at the end of the year was $215,000, up 12% from year-end 2019.
The interest rate for a 30-year fixed-rate mortgage averaged 3.11% for 2020, down significantly from the previous year’s average of 3.94%, according to Freddie Mac.
Miami’s Cash Buyers Top the National Figure
In 2020, cash deals represented 29.4% of Miami’s total closed sales, which is a decrease from 34.3% in 2019. About 20% of all U.S. housing sales are made in cash, according to NAR. 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 41.5% of condo closings were made in cash in 2020 compared to 17.3% of single-family home sales.
Distressed Property Transactions Continue to Decline in Miami
About 3.7 % of all closed residential sales in Miami were distressed in 2020, including REO (bank-owned properties) and short sales, compared to 6.2% in 2019.
Short sales and REOs accounted for 0.9% and 2.9%, respectively, of total Miami sales in 2020. Short sale transactions dropped 32.9% year-over-year while REOs decreased 44.1%. A decline in short sales points to more homeowners with increased equity, which should result in increased market activity.
Seller’s Market for Miami Single-Family Homes, Buyer’s Market for Condos
Inventory of single-family homes decreased 40.9% in 2020 from 6,190 active listings in 2019 to 3,659 in 2020. Condominium inventory decreased 12% to 12,898 in 2020 from 14,662 listings in 2019.
At the end of 2020, inventory for Miami single-family homes stood at a 3.3-month supply, a 41.1% decrease from 5.6 months in the previous year. Inventory for Miami existing condominiums at the end of 2020 stood at 11.8 months, which is down 5.6% from 12.5 months. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of 2020 decreased 20.6% year-over-year, from 20,852 to 16,557.
New listings of Miami single-family homes at year-end 2020 decreased 9.6% from 20,110 to 18,175. New listings of condominiums decreased 3.2%, from 26,241 to 25,400.
Lack of supply is expected to improve later this year as housing starts increase and sellers become more comfortable listing properties and allowing strangers in their homes once the vaccine is widely distributed.
4Q 2020: Miami Single-Family Home, Condo Sales Rise
Miami closed sales of existing single-family homes totaled 3,852 in the fourth quarter of 2020, up 17% compared to the previous year. Miami existing condo sales totaled 4,334 in 4Q 2020, up 23.1 % year-over-year.
Statewide closed sales of existing single-family homes totaled 86,543 in the fourth quarter of 2020, up 23.6% compared to the year-ago figure, according to Florida Realtors. Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 35,865 units sold statewide in 4Q 2020, up 29.4% compared to the same period a year earlier.
Median sale prices for Miami single-family homes increased 18.9%, from $370,000 to $440,000, in 4Q 2020. Condo median prices increased 10.2% from $245,000 to $270,000.
The national median existing single-family home price in 4Q 2020 rose 14.9% on a year-over-year basis, to $315,900.
The statewide median sales price for existing single-family homes for 4Q 2020 was $306,000, up 14.6% from 4Q 2019. The statewide median price for condo-townhouse properties for the quarter was $226,000, up 15% over the previous year. New pending sales for condo-townhouses for 4Q 2020 increased 30.9% compared to a year ago, while new listings were up 5.9% from the same quarter the previous year.
New listings of Miami single-family homes for sale in 4Q 2020 decreased 3.7% compared to the same quarter the previous year, from 4,461 to 4,297. New listings for existing condos in 4Q 2020 increased 7.5% from 5,960 to 6,407.
To access Year-end 2020, 4Q 2020 and Local Residential Market Metrics Year-end 2020 Miami-Dade Statistical Reports, visit http://www.SFMarketIntel.com
