Greater Miami Residential Sales Continued to Slide in May, Down 25 Percent Annually
According to the Miami Association of Realtors, Miami-Dade county total home sales decreased 24.6% year-over-year in May 2023 to 2,412 total transactions.
Miami single-family home sales decreased 12.8% year-over-year, from 1,193 in May 2022 to 1,040 in May 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 31.6% year-over-year, from a historic 2,005 in May 2022 to 1,372 in May 2023, due to lack of inventory and rising mortgage rates.
About 40.9% of all Miami-Dade existing purchases were made in cash in May 2023, an increase from 37.9% in April 2023. Cash buyers are not deterred by rising rates. In May 2023, cash sales accounted for 53.4% of all Miami existing condo sales and 24.3% of single-family transactions.
Miami-Dade County single-family home median prices increased 7.8% year-over-year in May 2023, increasing from $575,000 to $620,000. Miami single-family median prices have risen for 138 consecutive months (11.5 years), the longest running-streak on record. Existing condo median prices stayed even year-over-year at $415,000. Condo median prices have stayed even or increased in 138 of the last 144 months.
About 45,430 people moved into Miami-Dade in 2021, up 15% from the level in 2020 (39,562) and up 20% from the level in 2019 (37,630). Top households that moved into Miami-Dade included Kings County, New York; Cook County, Illinois; Queens County, New York; and Harris County, Texas.
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 (5.1 months) are low. Also, one of the supports for home prices is rents and rents are up.
While inventory is rising, Miami-Dade inventory is still near all-time lows. The monthly historical average for Miami-Dade inventory is 20,302 and current inventory is at 9,331. Total inventory is down 58.9% from pre-pandemic (May 2019), from 22,707 to 9,331.
Total active listings at the end of May increased 19.4% year-over-year, from 7,814 to 9,331. Inventory of single-family homes increased 8.2% year-over-year in May 2023 from 2,790 active listings last year to 3,018 last month. Condominium inventory increased 25.7% year-over-year to 6,313 from 5,024 listings during the same period in 2022.
New listings of Miami single-family homes decreased 26.3% to 1,336 from 1,813 year-over-year. New listings of condominiums decreased 23.6%, from 2,521 to 1,925 year-over-year.
Months’ supply of inventory for single-family homes increased 50% to 3.3 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 104% to 5.1 months, which also indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Only 1.1% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.2% in May 2022. In 2009, distressed sales comprised 70% of Miami sales.
Short sales and REOs accounted for 0.2% and 0.9% year-over-year, respectively, of total Miami sales in May 2023.
The median percent of original list price received for single-family homes was 96.8% in May 2023, down from 100% last year. The median percent of original list price received for existing condominiums was 96.3%, down from 100% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 27 days, up from 14 days last year. The median time to sale for single-family homes was 71 days, up from 58 days last year.
The median number of days between the listing date and contract date for condos was 36 days, up from 21 days. The median number of days to sale for condos was 77 days, down from 67 days.
Cash sales represented 40.9% of Miami closed sales in May 2023, compared to 44.4% in May 2022. About 25% 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 53.4% of all Miami existing condo sales and 24.3% of single-family transactions.
