MIAMI — Miami-Dade County $1 million+ luxury home sales continued outperforming pre-pandemic levels as total median sale prices rose once again as the market leads the nation in real estate appreciation, according to April 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade $1M+ home sales are up 94.3% in April 2023 vs. pre-pandemic April 2019, 340 transactions to 175. The rise continues Miami Dade’s historic luxury sales boom. About 45% of all Miami $1M+ sales since 2008 have happened in the last three years.
“South Florida has benefited from a major wealth migration as buyers from California and New York have relocated their companies and their families to Miami: the city of the future,” MIAMI Chairman Ines Hegedus Garcia said. “With this increased demand, we recognize the need for expanded inventory and new listings at various price points, as this would unlock even greater sales potential in the market.”
Florida ranked No. 1 in the U.S. in largest net gain of adjusted gross income (AGI) due to domestic migration, gaining $23.7 billion, according to most recent IRS-SOI migration data. Miami-Dade’s out-of-state homebuyers with a mortgage earn nearly $100,000 in median household income.
Miami ranks No. 4 in super-prime real estate transactions ($10M+) and No. 5 in ultra-prime ($25M+) sales in the world, according to the 2023 Knight Frank Wealth Report.
Mortgage Rates Up 3 Percentage Points Vs. Last Year; Impacting Sales
Miami total home sales decreased 35.5% year-over-year in April 2023, from a historic 3,445 transactions in April 2022 to 2,222 in April 2023, because of rising mortgage rates, the recent banking crisis and lack of supply in certain price points.
Most of the homes purchased in April 2023 came to terms in March when mortgage rates started at 6.71% before hitting 7.03% on March 7, 2023. Rates leveled off before recently rising again. Rates on March 1, 2022 were 3.90%.
Home sales are sensitive to mortgage rate changes. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.35% as of May 11. That’s down from 6.39% the previous week but up from 5.30% one year ago.
“Rising mortgage rates and the banking distress in March tripped up April’s home sales,” MIAMI REALTORS® Chief Economist Gay Cororaton said. “But with inflation on the wane, I expect mortgage rates move towards 5.5% by year-end which will revive the housing rally we saw in the first quarter.”
Miami single-family home sales decreased 19.7% year-over-year, from 1,246 in April 2022 to 1,000 in April 2023 because of its comparison to a historic month and the current market has lower inventory in specific price points and higher rates.
Miami existing condo sales decreased 44.4% year-over-year, from a historic 2,199 in April 2022 to 1,222 in April 2023, due to lack of inventory and rising mortgage rates.
Miami Home Prices, Household Income Rise with Wealth Migration
Miami-Dade County single-family home median prices increased 6.2% year-over-year in April 2023, increasing from $565,000 to $600,000. Miami single-family median prices have risen for 137 consecutive months (11.4 years), the longest running-streak on record. Existing condo median prices increased 6.4% year-over-year, from $390,000 to $414,900. Condo median prices have increased in 137 of the last 143 months.
Home prices are determined by supply and demand. Lower supply and higher demand create higher prices. Inventory for Miami single-family homes (3.3 months) and condos (4.9 months) are low. Also, one of the supports for home prices is rents and rents are up.
Miami-Dade Inventory, New Listings Near All-Time Lows
April 2023 inventory ranks as the second lowest in Miami-Dade history for the month of April, only surpassing April 2022 (7,088). Miami-Dade total inventory is down 53.1% from the historical county average for April. Miami-Dade average inventory for the month of April is 20,081; in April 2023 total inventory was 9,414.
April 2023 new listings rank as the second lowest in Miami-Dade history for the month of April, only surpassing the pandemic month of April 2020 (2,369). Miami-Dade new listings are down 28.8% from the historical county average for April. Miami-Dade average inventory for the month of April is 4,043; in April 2022 new listings totaled 2,879.
Total active listings at the end of April increased 32.5% year-over-year, from 7,077 to 9,378.
Inventory of single-family homes increased 28.3% year-over-year in April 2023 from 2,366 active listings last year to 3,036 last month. Condominium inventory increased 34.6% year-over-year to 6,342 from 4,711 listings during the same period in 2022.
New listings of Miami single-family homes decreased 30.1% to 1,151 from 1,647 year-over-year. New listings of condominiums decreased 25.3%, from 2,287 to 1,709 year-over-year.
Months’ supply of inventory for single-family homes increased 73.7% to 3.3 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 113% to 4.9 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Nationally, total housing inventory at the end of April was 1.04 million units, up 7.2% from March and 1.0% from one year ago (1.03 million). Unsold inventory sits at a 2.9-month supply at the current sales pace, up from 2.6 months in March and 2.2 months in April 2022.
Miami Real Estate Posts $271.1 Million Local Economic Impact in April 2023
Every time a home is sold it impacts the economy: income generated from real estate industries (commissions, fees and moving expenses), expenditures related to home purchase (furniture and remodeling expenses), multiplier of housing related expenditures (income earned as a result of a home sale is re-circulated into the economy) and new construction (additional home sales induce added home production).
The total economic impact of a typical Florida home sale is $122,000, according to NAR. Miami-Dade sold 2,222 homes in April 2023 and had a local economic impact of $271.1 million.
Miami total dollar volume totaled $1.7 billion in April 2023. Single-family home dollar volume decreased 26.67% year-over-year to $923 million. Condo dollar volume decreased 48.15% year-over-year to $802 million.
Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 1.3% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, even with the figure in April 2022. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.3% and 0.9% year-over-year, respectively, of total Miami sales in April2023.
Miami’s percentage of distressed sales are on par with the national figure. Nationally, distressed sales represented 1% of sales in April, unchanged from last month and the prior year.
Miami Median Price Appreciation Outperforming Nation, State
In Florida, closed sales of single-family homes statewide totaled 23,334 in April 2023, down 17.2% year-over-year, while existing condo-townhouse sales totaled 10,040, down 26.8%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
Nationally, total existing-home sales transactions slid 3.4% from March to a seasonally adjusted annual rate of 4.28 million in April. Year-over-year, sales slumped 23.2% (down from 5.57 million in April 2022).
The statewide median sales price for single-family existing homes was $400,000, even 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 $325,000, up 4.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Nationally, the median existing-home price for housing types in April was $388,800, a decline of 1.7% from April 2022 ($395,500). Prices rose in the Northeast and Midwest but retreated in the South and West.
Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 96.6% in April 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 96%, down from 99.4% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 30 days, up from 14 days last year. The median time to sale for single-family homes was 71 days, up from 59 days last year.
The median number of days between the listing date and contract date for condos was 37 days, up from 25 days. The median number of days to sale for condos was 75 days, down from 69 days.
Miami Cash Sales 35.4% More than National Figure
Cash sales represented 37.9% of Miami closed sales in April 2023, compared to 43.8% in April 2022. About 28% of U.S. home sales are made in cash, according to the latest NAR statistics.
Cash buyers are not deterred by rising rates. The high percentage of cash buyers reflects Miami’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash as well as some moving from more expensive U.S. markets who can buy more with their profits from real estate sales.
Cash sales accounted for 50.5% of all Miami existing condo sales and 22.7% of single-family transactions.
To access April 2023 Miami-Dade Statistical Reports, visit http://www.SFMarketIntel.com
Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of Realtors®
The MIAMI Association of Realtors (MIAMI) was chartered by the National Association of Realtors in 1920 and is celebrating 103 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of six organizations: MIAMI RESIDENTIAL, MIAMI COMMERCIAL; BROWARD-MIAMI, a division of MIAMI Realtors; JTHS-MIAMI, a division of MIAMI Realtors in the Jupiter-Tequesta-Hobe Sound area; MIAMI YPN, our Young Professionals Network Council; and the award-winning MIAMI Global Council. MIAMI REALTORS represents nearly 60,000 total real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S. and has official partnerships with 246 international organizations worldwide. MIAMI has been selected to host the prestigious FIABCI World Congress on June 5-9, 2023. MIAMI’s official website is www.MiamiRealtors.com