Single-family home sales in Miami-Dade County increased in Q2 2024
Miamirealtors.com has just published an intriguing article titled "Miami-Dade County Single-Family Home Sales Set to Surpass Last Year; $600K+ Condo Sales Surge Compared to Pre-Covid." From skyrocketing sales and rising property values to the influx of new residents and shifting market dynamics, let's look at the snapshot of this flourishing landscape.
In recent years, Miami-Dade County's real estate scene has transformed dramatically, with the single-family home market emerging as a standout star amidst the post-pandemic resurgence. Attracting high-net-worth individuals and families, the demand for luxury homes is soaring to unprecedented levels.
In the first half of 2024, single-family home sales in Miami-Dade County saw a notable 2.3% increase compared to the same period in 2023. This upward trend continued into the second quarter, with year-over-year sales rising 2.9%, from 3,044 in Q2 2023 to 3,133 in Q2 2024.
Despite facing broader market challenges, Miami-Dade's single-family home segment has shown impressive resilience, posting gains in six out of the last eight months. This trend highlights the enduring allure of the area’s high-end properties, attracting a sophisticated clientele in search of a premium lifestyle.
Condos tell a more complex story
While single-family homes in Miami-Dade are thriving, the condo market tells a more complex story. In Q2 2024, condo sales dropped by 7.5% year-over-year, slipping from 3,954 to 3,657 transactions. This dip stems from tight inventory at key price points and rising mortgage rates. But don't be fooled—there's a silver lining. High-end condos, those priced at $600,000 and above, have seen a staggering 99.3% increase in demand compared to pre-COVID levels (June 2019). Even more impressive, condos valued at $1 million and above have surged by 85.5% in the same timeframe, highlighting a wealth influx that's reshaping South Florida's real estate landscape.
Inventory Crunch and Market Shifts
Miami-Dade's real estate market faces ongoing inventory constraints. Condo listings have plummeted 38% since pre-COVID, from 15,488 in June 2019 to 9,601 in June 2024. This shortage has driven a surge in high-end condo sales as buyers scramble for limited premium properties.
Single-family homes also face inventory issues but to a lesser extent. Active listings rose 35% year-over-year in June 2024, from 2,911 to 3,929. Despite this increase, overall inventory is still 33.4% below Miami-Dade's historical average.
Mortgage rates
The real estate landscape in Miami-Dade has felt the pinch from rising mortgage rates. As of July 18, 2024, the 30-year fixed-rate mortgage sits at 6.77%. While this is a slight dip from the previous week, it's a far cry from the low rates we saw between 2020 and 2022.
Experts, including MIAMI REALTORS® Chief Economist Gay Cororaton, are cautiously optimistic. She predicts that interest rates will drop below 7% for the rest of the year. By the end of 2025, we could even see rates dip below 6%.
What does this mean for Miami-Dade? Lower borrowing costs could give a much-needed boost to the housing market, especially for single-family homes.
Distressed Sales at 1%
In June 2024, only 1.1% of all closed residential transactions were distressed. This includes REOs (bank-owned properties) and short sales. Compare this to June 2023, when the figure was 1.4%. And remember 2009? Distressed sales then made up a staggering 70%.
This low percentage showcases the market's health and stability.
Nationally, distressed sales were at 2% in June 2024. Miami-Dade, however, has fared better, proving its resilience in facing economic challenges.
Miami-Dade's Real Estate Soars Above National and State Trends
Miami-Dade's real estate market is leaving national and state trends in the dust when it comes to price appreciation. In June 2024, the median price for single-family homes in the county surged by 5.5% year-over-year, climbing from $622,500 to $657,000. This marks an impressive 151 consecutive months of growth—the longest streak ever recorded.
Statewide, Florida's median sales price for single-family homes saw a modest 1.7% increase, while the national median price for existing homes of all types rose by 4.1%. Miami-Dade's exceptional performance highlights its unique allure and robustness in the residential real estate market, consistently drawing in a flow of high-net-worth buyers.
Near List-Price Sales and Faster Transactions
Miami-Dade's single-family home market remains robust. Buyers are snapping up properties close to their list prices. In June 2024, homes sold at 96.5% of their original asking price. This shows buyers' eagerness to secure homes they want.
Even more impressive, homes are selling faster. The median listing-to-contract time dropped to 28 days, down from 27 last year. The total median time to complete a sale fell from 71 days to 69.
High demand is clear. Sellers are attracting buyers quickly, making Miami-Dade a hot market for single-family homes.
Cash Sales Stay Strong in Miami-Dade
In June 2024, 37.9% of all property transactions in Miami-Dade were cash sales, well above the national average of 28%. This trend is fueled by foreign investors and wealthy buyers from pricier markets, who often pay in full. Their presence enhances the stability and resilience of the local real estate market.
Multiplying economic effect
The real estate industry profoundly influences local economies, with each home sale setting off a chain reaction that goes well beyond the transaction itself. The National Association of REALTORS® reports that a typical home sale in Florida generates a whopping $123,000 in economic impact. This figure includes income from real estate services, costs associated with purchasing a home, and the ripple effect of housing-related spending.
Take Miami-Dade County, for example. In June 2024 alone, the county saw 2,051 homes change hands, injecting an impressive $252.2 million into the local economy. This substantial contribution highlights the crucial role real estate plays in fueling economic growth and supporting various industries across the region.
