Miami-Dade County total home sales posted a double-digit increase for the seventh consecutive month in March 2021 as pent-up demand and low mortgage rates continue fueling transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade County total home sales jumped 61.5% year-over-year in March 2021, from 2,323 to 3,751. Miami single-family home sales rose 40.9% year-over-year, from 1,100 to 1,550. Miami existing condo transactions increased 80% year-over-year, from 1,223 to 2,201.
Miami real estate’s robust March 2021 statistics are in comparison to strong March 2020 sales. Local and national home sales experienced a brief slowdown starting in April 2020, but quickly rebounded to boost and significantly uphold the economy at a time when other industries struggled.
“Miami is a multicultural, world-class city in a tax-friendly state, and home buyers in tax-burdened states have pent-up demand to live, work and play here,” MIAMI Chairman of the Board Jennifer Wollmann said. “Low mortgage rates, the increased availability of remote work, relocating companies, Miami’s advancements as a global center for technology and finance, and increased interest from international buyers have all played a role in rising home sales.”
The demand for South Florida real estate is evident in median time to contract. Miami single-family homes are going under contract in 28 days, 46.2% faster than a year ago (52 days). Miami condos are going under contract 62 days, 26.2% faster than a year ago (84 days).
Lack of inventory in certain price points is impacting sales, particularly for single-family homes. Increased housing starts and more sellers listing properties in 2021 should help alleviate the lack of supply.
Miami Luxury Single-Family Home Sales Surge 225% in March 2021
Miami single-family luxury ($1-million-and-up) transactions jumped 225% year-over-year to 312 sales in March 2021. Miami existing condo luxury ($1-million-and-up) sales increased 204.4% year-over-year to 277 transactions.
Luxury months of supply continues to trend downward for all property types, month-over-month, and year-over-year.
Miami single-family homes priced between $400K to $600K surged 81.4% year-over-year to 488 transactions in March 2021. Miami existing condo sales priced between $400K to $600K increased 136.3% to 241 transactions.
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.
112 Consecutive Months of Price Appreciation in Miami
Strong demand coupled with limited supply continue to drive price appreciation in Miami-Dade.
Miami-Dade County single-family home prices increased 28.3% year-over-year in March 2021, increasing from $382,750 to $491,250. Miami single-family home prices have risen for 112 consecutive months, a streak of 9.3 years. Existing condo prices increased 13.4% year-over-year, from $269,000 to $305,000. Condo prices have increased or stayed even in 114 of the last 118 months.
Miami remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 85 square meters of prime property, according to Knight Frank’s 2021 The Wealth Report. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer significantly less prime land for $1 million.
Single-Family Home and Condo Dollar Volume Increases
Single-family home dollar volume increased 148.2% year-over-year, from $641.2 million to $1.6 billion. Condo dollar volume increased 143.3% year-over-year, from $557.8 million to $1.4 billion.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.08% in March, up from 2.81% in February. The average commitment rate across all of 2020 was 3.11%.
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 Distressed Sales Stay Low, Reflecting Healthy Market
Only 1.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 4.6% in March 2020. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 57.5%, from 106 to 45.
Short sales and REOs accounted for 0.3% and 0.9% year-over-year, respectively, of total Miami sales in March 2021. Short sale transactions decreased 18.8% year-over-year while REOs decreased 64.4%.
Nationally, distressed sales represented less than 1% of sales in March 2021, down from 3% in March 2020.
Miami Real Estate Selling Close to List Price
The median percent of original list price received for single-family homes was 97.3% in March 2021, up 1.2% from 96.1% last year. The median percent of original list price received for existing condominiums was 94.5%, up 0.5% from 94% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 28 days, a 46.2% decrease from 52 days last year. The median number of days between the listing date and closing date for condos was 62 days, down 26.2% from 84 days.
The median time to sale for single-family homes was 76 days, a 19.1% decrease from 94 days last year. The median number of days to sale for condos was 104 days, a 17.5% decrease from 126 days.
National and State Statistics
Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, decreased 3.7% from February to a seasonally-adjusted annual rate of 6.01 million in March. Sales overall climbed year-over-year, up 12.3% from a year ago (5.35 million in March 2020).
In March, statewide home sales totaled 32,819, up 23.3% year-over-year, while existing condo-townhouse sales totaled 16,518, up 52.6% over March 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, the median existing-home price for all housing types in March was $329,100, up 17.2% from March 2020 ($280,700), as prices increased in every region. March’s national price jump marks 109 straight months of year-over-year gains.
The statewide median sales price for single-family existing homes was $327,000 up 18.9% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $242,000, up 15.2% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Miami’s Cash Buyers Top National Figure
Miami cash transactions comprised 36.2% of March 2021 total closed sales, compared to 32.4% last year. The national figure for cash buyers is 23%.
Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international homebuyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 45.8% of condo closings were made in cash in March 2021 compared to 22.7% of single-family home sales.
Seller’s Market for Single-Family Homes, Balanced Market for Condos
Inventory of single-family homes decreased 55.2% in March 2021 from 6,216 active listings last year to 2,784 last month. Condominium inventory decreased 28.1% to 10,672 from 14,836 listings during the same period in 2020.
Inventory of active listings has decreased the last 19 months for single-family homes.
Months supply of inventory for single-family homes decreased 56.4% to 2.4 months, which indicates a seller’s market. Inventory for existing condominiums decreased 30.4% to 8.7 months, which indicates a balanced market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Months supply of inventory is down since July 2019 for single-family, reflecting strong demand.
Total active listings at the end of March 2021 decreased 36.1% year-over-year, from 21,052 to 13,456.
New listings of Miami single-family homes increased 22.5% to 1,892 from 1,545. New listings of condominiums increased 56.6%, from 1,827 to 2,861.
Nationally, total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory and down 28.2% from one year ago (1.49 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020. Inventory numbers continue to represent near-historic lows; NAR first began tracking the single-family home supply in 1982.
To access March 2021 Miami-Dade Statistical Reports, visit http://www.SFMarketIntel.com
