The Miami real estate market reveals strong growth in Miami's housing market. Recent data from the MIAMI Association of Realtors (MIAMI) and the MIAMI Southeast Florida Multiple Listing Service (SEFMLS) paint a compelling picture of the region's housing market performance, with single-family home sales and condo transactions both posting impressive year-over-year gains.
April 2024 data reveals that Miami-Dade sales rose by 5.4%, driven by a 6.5% hike in single-family homes and a 4.5% boost in condo sales compared to last year. This positive trend was seen across all price brackets, from $300,000 to over $1 million, each showing significant sales growth
Let's delve into their study.
Miami's Unique Advantage: Cash Buyers and Wealth Migration
One of the key factors driving Miami's continued real estate success is the high percentage of cash buyers in the market. As MIAMI Chairman of the Board Gus Fonte noted, "Miami cash buyers jumped double digits year-over-year and helped fuel the condo market to one of its best months in recent memory." This influx of cash-flush buyers, many of whom are part of the ongoing wealth migration to the region, has helped insulate the market from the impact of elevated mortgage rates.
Robust Growth Across Housing Segments
The data from April 2024 paints a vibrant picture of Miami's housing market. Total Miami-Dade sales increased by 5.4%, with single-family home transactions rising by 6.5% and existing condo sales climbing by 4.5% year-over-year. Notably, the increases were observed across various price points, with the $300,000 to $400,000, $400,000 to $600,000, $600,000 to $1 million, and $1 million and up segments all experiencing sales growth.
Soaring Luxury Home Transactions
The luxury segment of the Miami market has been particularly robust, with total $1 million and up home sales surging by 29.4% year-over-year. Condo transactions in this high-end category jumped by an impressive 45%, while single-family home sales in the $1 million and up range increased by 18.5%. This trend reflects Miami's growing status as a premier destination for the world's wealthiest individuals, as evidenced by its ranking as the top U.S. market for luxury residential price growth and among the emerging wealth hubs, according to the Knight Frank 2024 Wealth Report.
Expanding Inventory Offers More Options for Buyers
Another positive development in the Miami housing market is the increase in new listings, which have been on the rise for eight consecutive months and are nearing pre-pandemic levels. This expansion of inventory has provided home buyers with more options, allowing them to navigate the market more effectively.
Sustained Price Appreciation and Value Proposition
Despite the increases in prices, Miami remains a compelling value proposition compared to other global cities. The median single-family home price in the region increased by 9% year-over-year to $654,000, marking the 149th consecutive month of price appreciation – the longest streak on record. Existing condo median prices also rose by 7% to $444,000, maintaining their upward trajectory for 149 of the last 155 months.
Robust Economic Impact of Miami Real Estate
The strength of the Miami housing market extends beyond just sales and prices; it also has a significant economic impact on the local community. According to the National Association of Realtors, the total economic impact of a typical Florida home sale is $122,000. With 2,342 homes sold in Miami-Dade County in April 2024, the local economic impact reached an impressive $285 million.
Healthy Market Conditions: Low Distressed Sales
The Miami housing market is also characterized by its low levels of distressed sales, which accounted for only 0.9% of all closed residential transactions in April 2024. This figure is significantly lower than the national average of 2%, reflecting the overall health and stability of the local market.
Statewide and National Comparisons
While Miami's housing market has been a standout performer, the broader trends in Florida and the United States provide additional context. Statewide, single-family home sales in Florida increased by 5.8% year-over-year in April 2024, while existing condo-townhouse sales rose by 1.9%. Nationally, however, total existing-home sales slid by 1.9% during the same period.
Attracting Near List Price and Faster Sales
The resilience of the Miami housing market is further evidenced by the fact that both single-family homes and existing condominiums are attracting close to their list prices. The median percent of original list price received was 96.7% for single-family homes and 95.2% for condos. Additionally, the median time to sale for single-family homes was 70 days, down from 71 days a year earlier, while the median time to sale for condos was 85 days, up from 75 days.
