How high will they go?
The median sales price of single-family homes in Miami-Dade surged to an all-time high of $450,000 in November, the third consecutive month of setting a new record and continuing a nine-year streak of monthly increases.
According to the Miami Association of Realtors, median sales prices grew 23% year-over-year from November 2019, when the figure was a now-nostalgic $385,000.
The median sales price of existing condos also rose 10% year-over-year in November, from $245,000 to a current $270,000.
In Broward, demand was equally high. The median sales price of single-family homes there jumped 13.3% year-over-year in November 2020, increasing from $375,000 to $425,000 — equaling the all-time record high set in September 2020. Existing condo prices in Broward increased 20% year-over-year, from $170,000 to $204,000.
The overall number of home sales in Miami-Dade was 2,459, a 20% jump from November 2019. Overall number of existing condo sales showed a similar increase year-over-year of 23%, from 1,061 to 1,305.
The percentage of all-cash sales dipped to 29% from 35% in November 2019, an indication that fewer foreign buyers are competing with locals. But Miami-Dade still had the highest percentage of cash transactions in the U.S. The national percentage is 20%.
"The pandemic has prioritized the importance and value of our homes," Miami Association of Realtors Chairman of the Board Jorge L. Guerra Jr. said in a press release. "More than ever, home has become the focal point of our lives, and consumers want more space and convenience. Remote work, home schooling, record-low mortgage rates, low inventory and purchases from tax-burdened Northeastern home buyers are some of the factors boosting Miami real estate."
The increase in the number of home and condo sales cut across all price brackets. Single-family homes priced between $400,000-$600,000 jumped 50.4% year-over-year to 352 transactions in November 2020. Existing condo sales priced between $400,000-$600,000 increased 68.3% to 138 transactions.
The growth was even more dramatic in the luxury market. The number of sales of single-family homes priced at $1 million and up grew 120.3% year-over-year, to 163 transactions in November 2020. Sales of existing condos priced at $1 million and up increased 88.2% year-over-year, to 96 transactions.
Befitting the high demand, the median number of days between listing and contract dates for single-family home sales was 23 days, a 57.4% decrease from 54 days last year. The median number of days between the listing date and closing date for condos was 50 days, down 35.9% from 78 days.
Real estate broker Neal Oates, owner of the Miami-based World Renowned Real Estate, said speed is essential for buyers venturing into the Grand Prix Miami market.
"Go ahead and be quick to make a decision when you see something you like," he said. "But you should really begin doing the work before you look at a property. Find out exactly what you can afford from a lender and get pre-approved. Then you only need to have the property approved."
The monthly inventory of single-family homes in Miami-Dade stands at a scant 3.6 months (a healthy market should have between 6-9 months of housing stock). New listings for homes in November dipped 3% year-over-year, from 1,438 to 1,393. The scarcity is bound to continue to keep driving sale prices up.
The inventory for existing condominiums in Miami-Dade dipped 1.5% to 13 months, which means that market is still driven by buyers. New listings of condominiums increased 4.4%, from 2,005 to 2,094.
