Miami-Dade County Prices Rise in April 2020

“Despite the expected COVID-19 impact on April sales, we are already seeing a surge in pending sales that will result in a significant increase in closed sales in the next couple of months,” MIAMI Chairman of the Board Jorge L. Guerra Jr. said. “With stay-at-home orders ending and South Florida slowly reopening, listings and buying activity has definitely rebounded. Pent-up demand, historically low mortgage rates and the robust fundamentals of the South Florida housing market is already leading to increased buying activity.”

How was the Real Estate Market in Miami before the pandemic?

Before the COVID-19 situation, the Miami-Dade market was exceptionally strong. Miami real estate had record low delinquencies, no subprime mortgage crisis, strong demand/low supply, low interest rates, strong population growth, demand from foreign buyers and tax refugees from tax burdened states, high consumer confidence and a strong job market.

What are the statistics in the month of April now that COVID-19 has hit the market for the last 2 months? 

·      Nationally, mortgage applications to purchase a home rose 6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

·       Miami-Dade County single-family home prices increased 7.3% year-over-year in April 2020, increasing from $356,000 to $382,000. Miami single-family home prices have risen for 101 consecutive months, a streak of 8-plus years. Existing condo prices increased 6.9% year-over-year, from $248,000 to $265,000. Condo prices have increased or stayed even in 103 of the last 107 months.

·       Despite the price increase, Miami, where the median price is still comparable to 2007 figures, remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 93 square meters of prime property, according to Knight Frank’s 2019 The Wealth Report. Monaco (16 square meters), Hong Kong (22), New York (31), Los Angeles (36) and others offer significantly less prime land for $1 million.

·       Miami total home sales decreased 40.1% year-over-year in April 2020, from 2,629 to 1,576. Miami single-family home sales decreased 31.6% year-over-year in April 2020, from 1,265 to 865. Miami existing condo transactions declined 47.9% year-over-year in April 2020, from 1,364 to 711.

·       Single-family home dollar volume decreased 24.2% year-over-year, from $671 million to $508.6 million. Condo dollar volume decreased 46.8% year-over-year, from $557.8 million to $296.9 million

·       Only 4.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.1% in April 2019. In 2009, distressed sales comprised 70% of Miami sales.

·       Miami Real Estate Selling Close to List Price. The median percent of original list price received for single-family homes was 96% in April, up 0.5% from 95.5% last year. The median percent of original list price received for existing condominiums was 94.4%, up 1.1% from 93.4% last year.

·       Miami cash transactions comprised 22.1% of April 2020 total closed sales, compared to 34.8% last year. The national figure for cash buyers is 15%. 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.

·       Months supply of inventory for single-family homes decreased 13.8% to 5.6 months, which indicates a seller’s market. Inventory for existing condominiums decreased 7.9% to 12.8 months, which indicates a buyer’s 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 and since March 2019 for condos, reflecting strong demand.

Miami Dade is a big market with sub-markets or niches that might behave differently. Call me to discuss your investment options and find the best opportunities in your specific area of interest. 

Maria T. Villalobos 786-285-5855 or info@bestmiamihomes.net

To access April 2020 Miami-Dade Statistical Reports, visit http://www.SFMarketIntel.com