The Miami real estate market is on fire, with May 2023 bringing forth exciting developments and promising trends. According to statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system, the market saw significant growth in various aspects. Let’s dive into the key highlights that showcase Miami’s thriving property landscape.
Surge in Single-Family Home Sales
In May 2023, Miami-Dade County witnessed a remarkable 12.9% year-over-year surge in single-family home sales for properties priced between $600,000 to $1 million. With 342 transactions, it’s evident that the demand for single-family homes in this price range is booming.
Cash Sales Bucking the Trend
Contrary to the impact of rising mortgage rates in many housing markets, cash sales in Miami remain resilient. Approximately 40.9% of all existing purchases in May 2023 were made in cash, up from 37.9% in the previous month. Cash buyers are displaying unwavering confidence, and in May 2023, cash sales accounted for 53.4% of all existing condo sales and 24.3% of single-family transactions.
Limited Inventory Challenges the Market
The surge in demand, coupled with limited inventory, led to a 24.6% year-over-year decrease in Miami’s total home sales. Elevated mortgage rates and insufficient supply in specific price points impacted the overall sales, highlighting the need for more available properties to meet buyer demands.
Miami’s Economic Impact
The real estate sector plays a crucial role in boosting the local economy. In May 2023, Miami-Dade’s real estate transactions resulted in a staggering $294.3 million local economic impact. This impact includes income generated from real estate industries, expenditures related to home purchases, and additional home production through new construction.
Condo Market Struggles
While single-family home sales witnessed positive growth, the existing condo market faced challenges. Condo sales decreased by 31.6% year-over-year in May 2023, largely due to inventory shortages and rising mortgage rates. This sector may require additional attention to balance the market and stimulate growth.
Attracting Wealth Migration
Miami’s allure extends far beyond its vibrant culture and warm climate. In-migration has significantly contributed to South Florida’s household income, receiving a boost of $16 billion in 2021. Individuals and families moving into Miami-Dade from various regions, including New York, Illinois, and Texas, have had a substantial impact on the local economy.
Rising Home Prices
Miami-Dade County’s single-family home median prices increased by 7.8% year-over-year, reaching $620,000 in May 2023. This growth marks the longest-running streak on record, with prices rising for 138 consecutive months. Existing condo median prices remained steady at $415,000, showcasing the stability and resilience of the market.
Low Distressed Sales Reflect a Healthy Market
Miami’s real estate market remains relatively healthy, with distressed sales accounting for only 1.1% of all closed residential transactions. This is significantly lower than the 70% distressed sales witnessed during the 2009 housing crisis, indicating a robust and stable market environment.
Competitive Market Dynamics
The Miami real estate market remains highly competitive, with sellers receiving 96.8% of the original list price for single-family homes and 96.3% for existing condominiums. The median number of days for a single-family home to sell increased to 71 days, while condos saw a decrease to 77 days, demonstrating.
Source: The Miami Association For Realtors
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