Miami $1 Million Up Condo Sales Jump as Miami Ranks No. 1 in Home Price Appreciation

 

Miami-Dade County $1M and up condominium sales, total home transactions and single-family home sales increased year-over-year in July 2024 as Miami posted the No. 1 annual price appreciation in the U.S., according to statistics released by the MIAMI Association of Realtors (MIAMI) and the MIAMI Southeast Florida Multiple Listing Service (SEFMLS).

Miami $1M & up condo sales jumped 6% year-over-year in July 2024 to 142 transactions. Miami total home sales increased 4% in July 2024, from 2,051 to 2,122.

“With mortgage rates on the decline and Fed cuts forecasted, pent-up demand for Miami real estate is only starting to come off the sidelines,” MIAMI Chairman of the Board Gus Fonte said. “The Miami condo market is a top destination for buyers with rising $1M & up sales, price appreciation and inventory below pre-pandemic levels. The luxury, convenience, quality of life and more that comes with Miami condo living is the best in the nation.”

 

Miami-Dade Condominium Prices Have Appreciated 123.7% in the Last 10 Years

Existing condo median prices increased 1.2% year-over-year in July 2024, from $420,000 to $424,950. Condo median prices have stayed even or increased in 152 of the last 158 months.

Miami condo prices have risen 123.7% from July 2014 to July 2024, from $189,950 to $424,950.

Miami-Dade County single-family home median prices increased 6.1% year-over-year in July 2024, increasing from $631,670 to $670,000. Miami single-family median prices have risen for 152 consecutive months (12.6 years), the longest running-streak on record.

Miami single-family prices have risen 161.2% from July 2014 to July 2024, from $256,500 to $670,000.

Miami is ranked No. 1 in the U.S. in home price appreciation in August 2024, according to CoreLogic August 2024 U.S. Home Price Insights.

Miami’s home equity gains are nearly two times the national figure. Home equity gains on a single-family home purchased in Q1 2009 and sold in Q1 2024 are: Miami-Dade County at $533,955 versus the U.S. average at $287,111, according to MIAMI REALTORS® analysis assuming 10% downpayment and more.

Florida’s Live Local Act, which was passed in 2023 and amended in May 2024, is encouraging developers to build more affordable housing. The Live Local Act gives developers the highest density allowed in a local area if they allocate 40% of its units for affordable housing. The state law defines an affordable unit as being at or below 120% of an area’s median income.

Despite the increase in prices, Miami remains a value in comparison to other global cities. In Miami, $1M nets you at least 60 square meters of prime property, according to the 2024 Knight Frank The Wealth Report. This is much higher than other global cities: Sydney, Australia ($1M only purchases 43 square meters), Shanghai (42), Paris (40), Los Angeles (38), New York (34), Geneva (34), London (33), Singapore (32), Hong Kong (22) and Monaco (16).

 

Miami Total Sales, Single-Family Home Transactions Rise

Miami-Dade total sales increased 3.5% year-over-year, from 2,051 to 2,122.

Miami single-family sales increased 10.8% year-over-year, from 910 to 1,008. Miami-Dade single-family sales have posted gains in seven of the last nine months.

 

Miami $1M & Up Condo Sales Jumped 6% Year-over-Year

Miami-Dade $1M & up condo transactions increased 6% year-over-year in July 2024 to 142 transactions.

Three other Miami condo price buckets— $100K- $150K (78.6% increase year-over-year); $150K to $200K (2% increase); and $200K to $250K (4.6% increase) also posted sales increases.

Miami total existing condo sales decreased 2.4% year-over-year in July 2024, from 1,141 to 1,114. The statistics would be much stronger if they included South Florida’s robust developer new construction market and volume. The decline is due to lack of condo financing and inventory at key price points.

The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening. Of the 2,357 condominium buildings in Miami-Dade, Broward and Palm Beach counties, only 25 are approved for FHA loans, according to statistics from the U.S. Department of Housing and Urban Development.

Just 1.1% of South Florida condo buildings are approved for FHA loans.

 

Mortgage Rates at Lowest Level in More than a Year

Mortgage rates have declined to their lowest level in more than a year, enhancing buying power in both local and national markets. Rates have decreased by more than a percentage point from their October peak of 7.79%. NAR estimates that the recent decline could reduce monthly payments by over $300.

“Pent-up demand will be unleashed in 2025 as mortgage rates fall below 6%, resulting in robust sales activity, more buyer competition, and sustained price appreciation,” MIAMI REALTORS® Chief Economist Gay Cororaton said.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.49% as of August 15. That’s up from 6.47% one week ago but down from 7.09% one year ago.

 

Miami Active Inventory is Still Down 32% from the Historical Average

Total inventory is down 32.2% from the historical average for Miami. The monthly historical average for Miami-Dade existing inventory is 20,302 and current inventory is at 13,763.

Total active listings at the end of July increased 53.5% year-over-year, from 8,964 to 13,763.

Inventory of single-family homes increased 39.4% year-over-year in July 2024 from 2,860 active listings last year to 3,988 last month.

Condominium inventory increased 60.1% year-over-year from 6,104 to 9,775 listings during the same period in 2023, but the total is still below the historical and pre-pandemic average.

Months’ supply of inventory for single-family homes is 4.4 months, which indicates a seller’s market. Inventory for existing condominiums is 9.1 months, which indicates a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.

Nationally, total housing inventory registered at the end of July was 1.33 million units, up 0.8% from June and 19.8% from one year ago (1.11 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from 4.1 months in June but up from 3.3 months in July 2023.

 

Migration Bolstered South Florida’s Household Income by $10 Billion

Migration bolstered Southeast Florida’s aggregate household income by at least $10 billion in 2022, according to the latest most available Internal Revenue Service migration data after a new Miami Association of REALTORS® (MIAMI) analysis.

In Miami-Dade County, the average adjusted gross income of households who moved to the county (total adjusted gross income of movers divided by number of tax returns) was $175,600, which is 78% higher than the average income of households who left the county ($98,800) and 79% higher than the income of households who lived in the same county ($98,100).

Miami ranks No. 1 in the U.S. in luxury residential market price growth, via Knight Frank’s 2024 Wealth Report. The same publication also ranked Miami among the Emerging Wealth Hubs. Miami is also ranked the No. 4 U.S. City for Millionaire Growth Rate over the Past Decade (75% increase), according to Henley & Partners and New World Wealth 2024 report.

 

Miami Real Estate Posts $261 Million Local Economic Impact in July 2024
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 $123,000, according to NAR. Miami-Dade sold 2,122 homes in July 2024 for a local economic impact of $261 million.

Miami total dollar volume totaled $2 billion in July 2024. Single-family home dollar volume increased 42.05% year-over-year to $1.2 billion. Condo dollar volume increased 8.79% year-over-year to $812 million.

 

Miami Distressed Sales Remain Low, Reflecting Healthy Market
Only 1.2% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, lower than 1.3% in July 2023. 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 July 2024.

Miami’s percentage of distressed sales are equal to the national figure. Nationally, distressed sales represented 1% of sales in June 2024, virtually unchanged from last month and the prior year.

 

Miami Sales, Price Appreciation Outperforming Nation, State

In Florida, closed sales of single-family homes statewide totaled 23,353 in July 2024, up 5.2% year-over-year, while existing condo-townhouse sales totaled 8,364, down 1.2%. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

Nationally, total existing-home sales completed transactions that include single-family homes, townhomes, condominiums and co-ops – ascended 1.3% from June to a seasonally adjusted annual rate of 3.95 million in July. Year-over-year, sales fell 2.5% (down from 4.05 million in July 2023).

The statewide median sales price for single-family existing homes was $416,990, up 0.5% 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 $315,000, down 1.3% vs. last year. The median is the midpoint; half the homes sold for more, half for less.

Nationally, the median existing-home price for all housing types in July was $422,600, up 4.2% from one year ago ($405,600). All four U.S. regions posted price increases.

Miami Real Estate Attracting Near List Price
The median percent of original list price received for single-family homes was 97% in July 2024. The median percent of original list price received for existing condominiums was 95%.

The median number of days between listing and contract dates for Miami single-family home sales was 29 days, up from 24 days last year. The median time to sale for single-family homes was 72 days, down from 68 days last year.

The median number of days between the listing date and contract date for condos was 51 days, up from 32 days. The median number of days to sale for condos was 92 days, up from 77 days.

Miami Cash Sales 31.9% More than National Figure
Cash sales represented 35.6% of Miami closed sales in July 2024, compared to 39.6% in July 2023. About 27% 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 47% of all Miami existing condo sales and 23% of single-family transactions.

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 104 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 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 260 international organizations worldwide. MIAMI’s official website is www.MiamiRealtors.com