May 2017 was a Historical Month for Miami Real Estate

 
May 2017 was a historical month for the single-family home market in Miami as total home sales, dollar volume, median prices, traditional transactions and luxury sales increased, according to a new report by the Miami Association of Realtors and the MLS.

In May, 1,344 single-family homes in Miami were sold, which is the most in any May in the history of Miami real estate and a significant 9.9% increase from the 1,223 homes sold 1 year ago. Further, the existing condo sales are up 5.7%, total residential sales are up 7.7%, total dollar volume rose 14.7% and luxury single-family home transactions surged 23.5%. Luxury sales, which includes single-family homes $1 Million and above, have risen for 3 consecutive months, showing that the luxury market in Miami just keeps strengthening.

Total Residential Sales Increase

Sales for existing condos in Miami rose 5.7% year-over-year from 1,309 to 1,384. So, this combined with the 1,344 single-family homes transactions allot Miami-Dade County a total (existing) residential sales year-over-year growth from 2,532 to 2,728 transactions in the month of May.

Pending sales data also shows signs for future growth in the Miami real estate market. The number of existing condos in Miami that went under contract in May grew 6.8% year-over-year and pending sales for single-family properties also rose 5.4%.

May 2017…New Record for Single-Family May Home Sales

This year’s May single-family transactions of 1,344 highly surpassed the previous Miami-Dade County record of 1,276 transactions in May of 2015.

According to the Miami Association of Realtors, the increase in Miami single-family home sales is being fueled by a surge in mid-market (properties listed between $200k-$600k) and luxury transactions ($1 Million and above). Mid-market homes skyrocketed 27.9% from 756 to 967 sales and account for 71.9% of all the single-family home sales. Luxury transactions also skyrocketed 23.5% in May of this year.

Single-family home sales, excluding distressed transactions, in Miami rose 21.4%, showing signs of the health and strengthening of the Miami real estate market.

Median Prices Surge

Median prices for both single-family homes and existing condos in Miami-Dade County surged in May. Single-family home prices rose 10.7% in May of this year and have risen for 66 consecutive months. Existing condo prices also jumped up 4.8% in May and have increased in 70 of the past 72 months.

Despite increases in prices in the Miami real estate market, the value proposition of Miami real estate is so great that it remains a major bargain compared to other prime cities around the world such as Monaco, Hong Kong, New York and London.

Seller’s Market for Single-Family Homes, Buyer’s Market for Existing Condos

Inventory of single-family homes decreased 5% in May from 6,522 active listings in 2016 to 6,193 last month (2017). Monthly supply of inventory for single-family homes decreased 3.4% from 5.8 months to 5.6 months. The 5.6-month supply indicates a seller’s market.

Inventory of existing condos increased 8.8% from 14,081 to 15,325 during the same period in 2016. Existing condos have a 13.8-month supply, which indicates a buyer’s market.

The total active listings at the end of May increased 4.4% year-over-year, from 20,603 to 21,518 listings.

Miami Real Estate Market Expert

If you, or someone you know, are interested in buying or selling real estate in Miami, please contact Michael Light, Director of Luxury Sales at Douglas Elliman and Founder/Owner of the Miami Luxury Homes Group at Douglas Elliman. You may reach Michael directly at his office at (305) 350-9842, on his cell at (786) 566-1700 or via email at michael@miamiluxuryhomes.com.

Disclaimer: Data referenced herein was received from a third-party, according to the MLS. This information is for informative purposes only and should not be relied upon.