Miami-Dade County real estate had a strong third quarter in 2015, according to the Miami Association of Realtors, with overall house sales, single-family home purchases, existing condo transactions, and median prices all increasing over the same timeframe in 2014. Sale in Qatar | Property Hunter Qatar | Apartments
In the third quarter of 2015, Miami-Dade County had 7,811 cumulative home sales, up 2.3 percent from the previous quarter's 7,632 sales. Single-family home sales increased by 4.1 percent, from 3,522 to 3,699. Current condo transactions increased 0.8 percent, from 4,080 to 4,112, despite an increase in availability of Miami pre-construction condo units east of Interstate 95.
"As compared to other world-class global cities, Miami real estate remains a steal," said Christopher Zoller, the 2015 Residential President of the Miami Association of Realtors. "Single-family home prices in Miami are at 2004 levels, far lower than in New York, London, and Hong Kong. Today's values, combined with historically low mortgage rates and a diverse work market in South Florida, are attracting more people to buy real estate in Miami."
According to Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage was 3.95 percent in the third quarter of 2015. This compares to a 4.14 percent average a year ago in the same quarter.
Residential Sales in the United States and Individual States in the Third Quarter
According to the National Association of Realtors, overall existing-home sales for single-family and condominiums rose 3.4 percent to 5.48 million in the third quarter, up from 5.30 million in the second quarter, and was 8.3 percent higher than the 5.06 million pace in the third quarter of 2014.
According to Florida Realtors, closed sales of existing single-family homes totaled 74,141 in the third quarter of 2015, up 14.7 percent from the third quarter of 2014. In the third quarter of 2015, Florida's townhome-condo demand totaled 28,860 units, up 8.9% from the third quarter of 2014.
Miami is a city in Florida. In the third quarter, median prices for single-family homes and condominiums increased.
In the third quarter, the median price for single-family homes in Miami-Dade County rose to $273,200, up 9.3% from $250,000 in the previous quarter. Current condominiums' median price rose 4.8 percent year over year, from $189,900 to $199,000. For the 15th quarter in a row, single-family homes and condominiums in Miami-Dade County have seen price increases.
According to the National Association of Realtors' 2015 Profile of Home Buying Activity of International Clients, despite rising median rates, Miami's residential properties remain more affordable than those in other global cities. Based on prices published in the Global Property Guide, NAR calculated the cost of a 120-square-meter condo in a variety of international cities. The average price of a 120-square-meter condo in Miami-Fort Lauderdale-Miami Beach was $149,900. The same condo cost at least five times more in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million).
According to the National Association of Realtors, the median current single-family home price in the third quarter was $229,000, up 5.5 percent from the third quarter of 2014 ($217,100). In the third quarter, the national median existing-condo price was $215,200, up 2.0 percent from the third quarter of 2014 ($211,000).
According to Florida Realtors, the median sales price for single-family existing homes in the third quarter of 2015 was $199,900, up 9.8% from the same period a year earlier. The median price of a condo in Florida during the third quarter was $150,000, up 7.9% from the previous quarter.
Miami is a city in Florida. The number of active listings increased in the third quarter.
In the third quarter, seller trust in Miami's housing market grew even more. In the third quarter, Miami real estate had 17,837 active listings, up 2.0 percent from 17,480 listings at the same time last year.
As compared to the same time last year, single-family home inventory fell by 5.4 percent. The lower inventory is due to a record number of single-family home sales in Miami. Between January and September 2015, 10,799 single-family homes were sold in Miami, putting the market on track for 14,396 transactions. Last year's annual Miami record of 13,521 sales was set.
The third quarter of 2015 saw a 6.3 percent year-over-year rise in active listings in Miami existing condos, which are also having a banner year with 12,265 existing condo sales from January to September 2015.
The single-family home market in Miami is in a seller's market, while current condos are in a buyer's market. The number of active listings reflects 5.1 months of inventory for single-family homes and 8.7 months of inventory for condominiums at the current sales rate. Between six and nine months of supply inventory is available in a balanced market between buyers and sellers.
In the third quarter, the median number of days on the market for single-family home listings was 39, down from 45 a year earlier. Condominiums spent 60 days on the market on average, up from 57 days last year, a 5.3 percent rise.
The number of new listings for single-family homes in Miami fell by 0.2 percent, from 6,237 to 6,223. The number of new condominium listings fell by 1.5 percent year over year, from 8,366 to 8,238.
Cash Sales in Miami Almost double the national average
Miami appears to have a higher percentage of cash buyers than the national average. In the third quarter of 2015, about 48.8% of Miami closed sales were all cash. According to the latest NAR figures, only 24% of home purchases in the United States are made in cash. In the third quarter of 2014, cash transactions accounted for 54.9 percent of all Miami real estate transactions.
Cash sales accounted for 41% of all closed sales in the third quarter of 2015 across the state, down from 46% the previous year.
The current condo market in Miami has a higher percentage of cash-only transactions, with 62.5 percent of all transactions taking place in cash. Cash accounts for approximately 33.5 percent of all transactions in the single-family market.
The high percentage of cash buyers reflects Miami's status as the most important American real estate market for international buyers, who prefer to pay cash. According to the 2014 Survey of International Home Purchases conducted by NAR for MIAMI, 81 percent of international buyers in South Florida pay all cash, compared to 60 percent of international buyers across the United States.