How are residential homes for sale in the Miami area?
Oct 31, 2022
How are residential homes for sale in the Miami area? Miami
By   Internet
  • City News
  • Miami
  • residential home sales
  • Florida
Abstract: Sales of single-family homes fell 30 percent year-over-year, from a record 1,241 units in September 2021 to 869 units in September 2022, due to a lack of inventory and rising mortgage rates. Sales of existing condominiums in Miami fell 26.9 percent year-over-year, from a record 1,790 units in September 2021 to 1,309 units in September 2022.

Last September, the Federal Reserve voted to raise the federal funds rate again, aiming to slow 40 years of high inflation. Although the Fed does not set mortgage rates, it influences mortgage rates by implementing monetary policy.


As a result, the 30-year fixed mortgage rate has fluctuated from 2.99% to 6.92% in the past 52 weeks, an unprecedented level of volatility.


September 2022 marks the seventh consecutive month that mortgage rates have reached 5% or higher.


According to Freddie Mac data, the average commitment rate for a 30-year conventional fixed-rate mortgage was 6.11 percent in September, up from 5.22 percent in August. the average commitment rate for 2021 is 2.96 percent.


The housing market is very sensitive to increases in mortgage rates. 2018 is the last time mortgage rates reached 5%.


Total home sales in Miami increased by 7.9% in September 2022 compared to September 2018.


New single-family homes listed in Miami decreased by 15.6%, from 1,601 to 1,351. The number of new condominiums on the market decreased by 24.5 percent, from 2,460 to 1,858.


The monthly inventory supply of single-family homes increased 59.1% year-over-year to 3.5 months, indicating a seller's market.


Inventory of existing condominiums decreased by 18.6% to 3.5 months, which also indicates a seller's market. Supply ranges from 6 to 9 months in a market where buyers and sellers are in balance.


At the end of September 2022, the number of active listings decreased by 6.3% year-over-year, from 11,006 to 10,311 units.


The total U.S. housing inventory at the end of September was 1.25 million units, down 2.3% from August and 0.8% from a year ago.


At the current rate of sales, the supply of unsold inventory was 3.2 months, unchanged from August and up from 2.4 months in September 2021.


Total sales in Miami for September 2022 were $1.6 billion. Single-family residential sales declined 36.1 percent year-over-year, from $1.2 billion to $759.6 million. Condo turnover fell 15.3 percent year-over-year, from $982.9 million to $832.8 million.


Last month, only 1.2 percent of all completed residential sales in Miami were in question, including REO and short sales, compared to 1.8 percent in September 2021. in 2009, second home sales accounted for 70 percent of Miami home sales.


Miami's percentage of second homes is the same as the national data. Nationally, bargain sales accounted for about 2 percent of sales in September, slightly higher than the 1 percent in September 2021.


In Florida, total sales of single-family homes statewide through September 2022 were 20,099, down 29 percent year-over-year, while total sales of existing condominium townhouses were 8,406, down 29 percent year-over-year. Closed sales can occur between 30 and 90 days after the sales contract is signed.


In September, total sales of manufactured homes in China were at a seasonally adjusted annual rate of 4.71 million units, down 1.5 percent from August. Sales were down 23.8% year-over-year (down from 6.18 million units in September 2021).


The statewide median sales price for a single-family existing home was $403,880, up 13.8 percent from the previous year, according to the Florida Realtor Research Department in partnership with the local board/association of realtors. Last month, the median price for a townhouse in the Springs was $307,250, up 20.5 percent from a year ago.


Nationally, the median price of an existing home across all housing types was $384,800 in September, up 8.4 percent from September 2021, as prices climbed in all regions. This marked the 127th consecutive month of year-over-year increases, the longest streak on record.


The percentage of single-family homes sold at their original price was 96.6 percent in September 2022, down 2 percent from 98.6 percent last year. The percentage of existing condominiums sold at original price was 97.2 percent, down 0.1 percent from 97.3 percent last year.


The average number of days from listing to contract for single-family home sales in Miami was 24 days, up from 18 days last year. The median time to sale for single-family homes was 68 days, 3 percent higher than last year's 66 days.


The median number of days between condo listing date and contract date was 28 days, 20 percent lower than 35 days. The median number of days to sell a condo was 71 days, 13.4 percent lower compared to 82 days.


Cash accounted for 39.5 percent of completed sales in Miami in September 2022, compared to 37.3 percent in September 2021. According to the latest NAR statistics, approximately 22 percent of home sales in the U.S. are paid for with cash.


Cash buyers will not be deterred by rising interest rates. The high percentage of cash buyers reflects the fact that Miami is the most popular place for foreign buyers in the U.S. real estate market. These foreign buyers tend to purchase properties with cash, and also some from more expensive U.S. markets can purchase more properties with the profits from real estate sales.


Cash sales accounted for 49.6% of all existing condominium sales in Miami and 24.3% of single-family transactions.