Miami house prices up 5.5 years in a row

Miami house prices have risen for 5.5 years in a row.

The city has long been one of the most sought-after destinations in Florida, with more than double the national average number of cash transactions continuing to underscore the market’s popularity among international buyers.

Capital growth is a large part of its appeal, with Miami-Dade County single-family home prices jumping 12 per cent in July 2017 – increasing from $299,000 to $335,000. Prices have now risen for 68 consecutive months, a streak spanning more than five and half years. Existing condo prices remained the same at $225,000 and have increased in 71 of the last 74 months.

Nonetheless, Miami real estate remains a major bargain. A 120-square meter condominium in Miami-Fort Lauderdale-Miami Beach cost $170,000 in 2016 Q3, according to the National Association of Realtors. The average cost of a 120-square meter apartment in 2016 in the prime inner city areas of London ($4.1 million), Hong Kong ($3.1 million), and New York ($2.2 million) were at least ten times higher, according to Global Property Guide.

The national median sales price for existing single-family homes in June 2017, meanwhile, was $266,200, up 6.6 percent from the previous year; the national median existing condo price was $245,900.

Florida, too, remains a bargain for many investors: the statewide median sales price for single-family existing homes in July was $240,000, up 7.1 per cent from the previous year, according to data from Florida Realtors Research department, but still below the national average.

Transactions therefore continue to climb: total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — increased 0.8 per cent year-over-year in July, from 2,232 to 2,249. Sales for existing condominiums increased 2.5 per cent. Only sales of single-family homes edged down slightly by 1 per cent year-over-year, from 1,128 to 1,117.

The area’s prime market is performing particularly well. Sales for existing Miami luxury condos, which are competing with a robust new construction market, surged 51.1 per cent and luxury single-family home sales jumped 9.6 per cent. Sales for $1-million-and-up homes have now increased for five consecutive months. Luxury condo sales have risen for two straight months. Miami condominium sales increased 2.5 per cent in July, from 1,104 to 1,132.

“Sellers are becoming more realistic with their prices, especially at the top of the market,” says Christopher Zoller, the 2017 Miami chairman of the board and a Coral Gables Realtor. “The recent run-up of the stock market and the potential for interest rate hikes are also encouraging more buyers to come off the sidelines and purchase Miami real estate.”

 

Miami house prices up for 66th month in a row

19th July 2017

Miami house prices have risen for 66 months in a row, as the city enjoys its best May in history.

Total home sales, median prices, dollar volume, traditional sales and luxury transactions surged, according to the Miami Association of Realtors.

Miami-Dade County single-family home prices jumped 10.7 per cent in May 2017, increasing from $293,500 to $325,000. Existing condo prices increased 4.8 per cent, from $214,750 to $225,000. Condo prices have increased in 70 of the last 72 months.

Despite the rise in prices, Miami real estate remains attractively affordable on the international stage. A 120-square meter condominium in Miami-Fort Lauderdale-Miami Beach cost $170,000 in 2016 Q3, according to the National Association of Realtors, far below the average cost of a 120-square meter apartment in 2016 in the prime inner city areas of London ($4.1 million), Hong Kong ($3.1 million), and New York ($2.2 million), according to Global Property Guide.

It is no surprise, therefore, that May saw a 9.9 per cent jump in sales compared to year ago. Miami existing condo sales (up 5.7 percent), total residential sales (up 7.7 percent), total dollar volume (up 14.7 percent) and single-family luxury transactions (up 23.5 percent) also increased. Sales for single-family luxury homes (worth $1 million or above) have risen for three consecutive months.

Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — increased 7.7 percent year-over-year from 2,532 to 2,728. With 1,344 Miami single-family home sales, this year saw the highest number of transactions in any May in Miami real estate history.

“Pent-up demand is fueling a historic Miami home buying season,” says Coral Gables Realtor Christopher Zoller, the 2017 chairman of the realtors’ board. “Two months after posting its most March single-family home sales ever, Miami-Dade County broke another record for the most May sales. Local job growth and impending interest rate hikes are fueling purchases.”

Overseas demand, though, is also fuelling activity. Miami cash transactions comprised 39.4 per cent of May total closed sales, down from 47.2 per cent last year but almost double the national figure (22 per cent). Indeed, 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.

 

Miami house prices rose 11pc in 2016

28th February 2017

Miami house prices rose by more than 11 per cent in 2016, new figures reveal, as property sales surged.

Miami existing single-family homes finished 2016 with a median sales price of $295,000, up 11.3 per cent from the previous year, according to the Miami Association of Realtors.

The Miami median price for existing condominiums in 2016 was $212,500, an increase of 6.3 per cent from 2015.

Sale were driven higher by a strong year for property sales. The Miami single-family homes market finished 2016 with the third-most annual sales in county history, while existing condos posted the sixth-best sales year in history despite competing with Miami’s multi-billion dollar new condo construction market. Only 2015 and 2014 (13,521) recorded more annual Miami single-family home sales.

“Miami real estate is thriving as evidenced by the historic number of annual single-family home transactions the last three years,” said Coral Gables Realtor Christopher Zoller, the 2017 Miami Chairman of the Board. “High demand, low inventory, steady job creation and historically low mortgage rates have fueled a strong Miami single-family homes market. Existing condos finished with the sixth-best sales year in history despite an increase in competing new condo construction.”

The average percent of original list price received for single-family homes in 2016 was 95.6 per cent in 2016, an increase of 0.2 per cent from a year earlier.

Historic-low mortgages rates are encouraging home buying. The interest rate for a 30-year fixed-rate mortgage averaged 3.65 percent for 2016, down from the previous year’s average of 3.85 percent, according to Freddie Mac.

 

Miami condo prices dip for first time in five years

11st August 2016

The price of condos in Downtown Miami has dipped for the first time in five years, according to new figures.

Data from Miami’s Downtown Development Authority shows that the resale price for downtown condos built after 2001 has slipped 4 per cent to $438 per square foot in the first half of 2016, the first decline in value after five years of double-digit increases.

The report attributes the decline partly to an increase in supply, with listings up from around 2,000 two years ago to 3,000, with sale also falling.

“Despite retreats in the resale pricing, the pre-construction market pricing remains solid. Projects nearing close out are holding pricing, or even increasing pricing as the current wave of project deliveries is substantially sold out,” says the report. “Sales offices reporting a slow January and February sales indicate that sales in April and May were above trend.”

The good news is that affordability may improve for those looking to get on the housing ladder, with rents likely to slow, making it easier for tenants to save up money for a purchase.

Indeed, average condo rental pricing has leveled off year-to-date in all unit types except 1 Bedrooms, where rents are growing by 1.5 per cent. A similar trend appears in the conventional rental data, with studio rents growing 4.4 per cent, while all other unit types are experiencing nominal or slightly negative rent growth.

“Some near term rent stability will assist in keeping the inflow of urban professionals needed to continue with the growth of Downtown Miami,” says the report.

 

Miami house prices continue climb in January

15th March 2016

Miami enjoyed a record year in 2015, but house prices continue to climb at the start of 2016.

Last year, the Miami Association of Realtors recorded its highest ever number of single-family home sales and its third-most total residential transactions.

Total existing Miami-Dade County residential sales decreased 12.1 per cent from 2,043 sales in January 2015 to 1,796 in January 2016. Nonetheless, the market’s recovery continues to build momentum, with prices still on the up.

“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,” says Teresa King Kinney, chief executive officer for MIAMI. “Miami-Dade County’s five years of record sales have been unique in the U.S. real estate market. It is anticipated Miami will continue in a sales range consistent with a strong market.”

That demand is both local and international. In January 2016, cash transactions comprised 52.6 per cent of Miami’s total closed sales, which is still double the national average of 26 per cent. Miami’s high percentage of cash sales still reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash.

“Miami properties remain in high demand,” comments Mark Sadek, a Coral Springs Realtor and the 2016 MIAMI Chairman of the 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.”

As a result, the median sales price for single-family existing homes rose 13.7 per cent year-over-year in January 2016, from $237,500 to $270,000. Single-family home prices remain at 2004 levels despite four years of increases. The median sales price for existing condominiums increased 8.8 per cent in January 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.

Nonetheless, the market’s prices remain at 2004 levels, despite the steady capital growth, making Miami real estate attractive to international investors. Historic-low mortgage rates should also continue to attract future, local buyers. According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage sat at 3.87 per cent in January. Interest rates have stayed below 4 percent for six consecutive months.

Comments

comments