Miami Real Estate Posts Second Best Selling Quarter in History; Condominium transactions up 72% in Q3 2021


MIAMI Chairman of the Board Jennifer Wollmann

“Miami real estate sales were increasing before the pandemic, and the pandemic has only accelerated the demand for real estate in South Florida.”

According to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS), Miami-Dade County real estate posted its second-highest quarterly home sales in history in Q3 2021, as Miami’s real estate record in 2021 continues.

Miami-Dade County total home sales jumped 35.5% year-on-year in Q3 2021, from 7,351 to 9,962. The quarter follows record total sales of 11,553 in Q2 2021. Q3 2021, Miami single-family home transactions increased 2.2%, from 3,839 to 3,923. Miami single-family homes have now posted year-over-year sales gains in nine of the years. Last 10 quarters, over a period of 2.5 years. Sales of existing condos in Miami increased 72%, from 3,512 to 6,039.

“Miami real estate sales were increasing before the pandemic, and the pandemic has only accelerated the demand for real estate in South Florida,” said MIAMI board chair Jennifer Wollmann. “The increased availability of remote working has accelerated the migration to South Florida because if you can do business anywhere why not move to a market like South Florida where your money will go more? away and your lifestyle and health will be so much better? “

Transactions also show strong gains when comparing 3Q 2021 to 3Q 2019. Total Miami home sales jumped 40.2% compared to 3Q 2019 to 3Q 2021, from 7,104 to 9,962 transactions. Condo sales (up 68.2%) and single-family home sales (up 11.6%) increased from Q3 2019 to Q3 2021.

Lack of inventory at certain price points impacts sales, especially for single-family homes. The increase in housing starts and the increase in the number of sellers listing properties in 2022 should help to alleviate the lack of supply.

Miami luxury condo sales jump 199.1% as buyers from northeast and west coasts move to mega-region

Luxury single-family home transactions in Miami-Dade County ($ 1 million and over) jumped 67.3% year-on-year to 738 transactions in 3Q 2021. Luxury condo sales in Miami County Miami-Dade rose 199.1% to reach 643 transactions in Q3 2021..

Record interest rate; a record S&P 500; the attractiveness of stable assets in a volatile economy; home buyers leaving the tax-burdened northeastern and west coast states to buy in Florida (no state income tax); and work-from-home and distance-learning policies have all combined to create a strong market for luxury single-family properties.

With the increase in global vaccinations and the instability of political situations around the world, South Florida is experiencing an increase in the number of foreign buyers. Global sales are expected to rise even more now that vaccinated foreigners are allowed to resume travel to the United States from November 8. Global buyers buy in Miami because Miami is a world-class global city with better real estate prices than other similar global cities. Foreign buyers feel at home with our incredible diversity and acceptance of all cultures.

Miami homeowners’ home equity continues to rise as many pay lower mortgage payments

With interest rates still at record highs, many South Florida homeowners have refinanced their home loans. So not only are many homeowners paying lower mortgage payments today; they do this when their wealth (the equity in their home) has increased dramatically. Home equity can be used for renovations, college loans, and more.

Median single-family home prices in Miami increased 19% year-over-year, from $ 420,000 to $ 500,000. Median prices have now risen for 39 consecutive quarters, a streak of 9.75 years. Median prices of existing condominiums in Miami increased 26.9% year-over-year, from $ 264,000 to $ 335,000.

Rising median prices are a trend nationwide, as record mortgage rates and the increased availability of distance work and education have accelerated housing demand. Low stock versus high demand causes prices to increase.

If mortgage rates resume their ascent, home price growth should slow down accordingly. Additionally, as more sellers list properties in 2022, increased inventory should facilitate growth in median prices.

Miami remains a good deal compared to other cities in the world. In Miami, $ 1 million can net homebuyers 85 square meters of top-notch property, according to Knight Frank’s The Wealth Report 2021. Monaco (15 square meters), Hong Kong (23), London (31), New York (34) and Geneva (35) and others offer far less prime land for $ 1 million.

Miami dollar volume totals $ 7.4 billion, showing impact of housing on local economy

While other industries have struggled over the past year, housing has boosted the economy nationally and locally. For every two homes sold in the United States, one job is created. The Miami dollar volume shows the impact of housing on the local economy.

Miami single-family home dollar volume increased 40.5% from $ 2.8 billion to $ 4 billion. Miami’s existing condominium dollar volume increased 129.4% to $ 3.4 billion. Sales do not include Miami’s multi-billion dollar new-build condominium market.

Non-distressed sales accounted for approximately 98.5% of all residential sales closed in 3Q 2021 compared to 96.7% in 3Q 2020. Only 1.5% of all residential closed sales in Miami were in difficulty in 3Q 2021, including REO (bank properties) and short sales, up from 3.3% in 3Q 2020. In 2009, troubled sales represented nearly 70% of Miami sales.

Short sales and REOs accounted for 0.5% and 0.9% of total Miami sales in Q3 2021, respectively. Short sale transactions were flat year-over-year at 54 while REOs were fell by 50%.

Falling mortgage rates made home purchases more affordable in 2021. According to Freddie Mac, the interest rate on a 30-year fixed-rate mortgage has fallen to 2.98% from 3.09% the week. last. Around the same time last year, the rate was 2.84%.

Nationally, the median selling price of existing single-family homes climbed 16% from a year ago to $ 363,700, a slower pace from the previous quarter (22.9%). All four major regions saw double-digit year-over-year price growth, led by the Northeast (17.5%), followed by the South (14.9%), the Midwest (10 , 7%) and the West (10.3%).

Increased New Listings: More Sellers Listing Properties Should Help Alleviate Lack of Supply

New listings of single-family homes increased 4.4% year-on-year in Q3 2021, from 4,751 to 4,962. New condo listings increased 12.4% year-on-year in Q3 2021, from 6 785-7623. This is a sign that more and more sellers are entering the market.

At the current sales rate, the number of active listings represents 2.2 months of inventory for single-family homes (seller’s market) and 4.3 months for condominiums (seller’s market). A balanced market between buyers and sellers offers between six and nine months of supply stock.

Miami real estate had 11,006 active listings in Q3 2021, down 39.5% from 18,187 listings in the same period last year. The inventory of single-family homes fell 26.8%, from 4,039 to 2,957. The inventory of existing condos in Miami declined 43.1%, from 14,148 to 8,049.

Miami Real Estate Attracts Multiple Offers, Buyers Over List Price

With low inventory, especially for single-family homes, Miami properties attract multiple bids and buyers exceed the list price. The median percentage of the initial list price received was 98.9% for single-family homes and 97.1 for condos in Q3 2021.

The median time to contract for single-family home listings was 18 days, down 60.9% from 46 days in 3Q 2020. The median time to sell single-family homes was 29.8%, from 94 days to 66.

The median time to conclude a contract for existing condos was 40 days, a decrease of 44.4% compared to 72 days in 3Q 2020. The median time to sell for existing condos has decreased by 26.7%, from 116 to 85.

Miami spot sales 67.4% above national figure in Q3 2021

Cash sales accounted for 38.5% of completed sales in Miami in Q3 2021, up from 27.3% in Q3 2020. About 23% of US home sales are made in cash, according to the latest statistics from the NAR.

The high percentage of cash buyers reflects Miami’s leading position as the predominant US real estate market for foreign buyers, who tend to buy with all cash, as well as some moving to more expensive US markets which are able to buy more with their real estate profits. Sales.

Cash sales accounted for 47.1% of all existing condo sales in Miami and 25.1% of single-family transactions.

Miami-Dade Q3 2021 Statistical Reports – visit SFMarketIntel.com

Note: Statistics in this press release may vary based on reporting dates. MIAMI reports accurate statistics directly from its MLS system.

About the MIAMI Real Estate Agents Association

The MIAMI Association of Realtors was established by the National Association of Realtors in 1920 and celebrates 101 years of service to realtors, the buying and selling public, and communities of South Florida. Comprised of six organizations, the Residential Association, the Realtors Commercial Alliance, the Broward-MIAMI Association of Realtors, the Jupiter Tequesta Hobe Sound (JTHS-MIAMI) Council, the Young Professionals Network (YPN) Council and the award-winning International Council, it represents 52,000 real estate professionals in total in all aspects of real estate sales, marketing and brokerage. It is the largest local association of real estate agents in the United States and has official partnerships with 223 international organizations around the world. The official MIAMI website is http://www.MiamiRealtors.com

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