According to a new report by the Miami Association of Realtors, total Miami-Dade County home sales in September 2018 surged 35.7 percent last month a year after Hurricane Irma brought minimal damage and stalled hundreds of sales in September 2017.
Miami-Dade single-family home sales jumped 43 percent year-over-year, from 684 to 978, in September. The condo market continued trending upward with 29.5 percent more sales in September 2018 vs. September 2017. Miami condo sales have risen in seven of the last nine months.
"Miami is one of the most resilient communities in the world and our real estate market embodied that resiliency by bouncing back as expected from stalled transactions in September 2017," said MIAMI Chairman of the Board George C. Jalil. "The sales growth continues a trend of increased Miami home sales, particularly in the existing condo market."
Miami Single-Family Home Sales Jump 43 percent
Miami-Dade County single-family home sales increased 43 percent year-over-year, from 684 to 978. The Miami market has registered 9,851 single-family home sales year to date, an increase of 0.7 percent from this time last year.
The largest segment of growth for single-family home sales is the $200,000 to $600,000 range. The segment recorded 757 single-family home sales, an increase of 49 percent from September 2017.
Miami Existing Condo Sales Have Increased in Seven of the last Nine Months
Miami existing condo sales increased 29.5 percent year-over-year in September, from 804 to 1,041. The Miami market has registered 10,531 existing condo sales year to date, an increase of 5.2 percent from this time last year.
The largest segment of growth for existing condo sales is the $150,000 to $300,000 range. The segment recorded 539 condo sales, an increase of 47.7 percent from September 2017.
Sales Dollar Volume Jumps 42.6 Percent to $900 Million
Total sales volume increased to $900 million from $631.1 million in September 2017. Existing condo sales volume increased from $304.7 million to $374.3 million (an increase of 22.8 percent). Single-family home total dollar volume rose 61.1 percent, from $326.4 million to $525.7 million.
Luxury sales played a significant role in the rise of the total sales volume. Miami single-family $1 million-and-up luxury sales jumped 62.2 percent, from 45 to 73 transactions. Existing luxury condo sales increased 25.6 percent, from 43 to 54 transactions.
Luxury single-family home sales have now increased for five consecutive months. Luxury existing condo sales have increased in five of the last six months.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
Nearly Seven Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 7.5 percent in September 2018, increasing from $335,000 to $360,000. Miami single-family home prices have risen for 82 consecutive months, a streak of nearly seven years. Existing condo prices rose 1.3 percent, from $234,500 to $237,500 in September. Condo prices have increased in 85 of the last 88 months.
Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.63 percent in September from 4.55 percent in August. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 6.8 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 9.1 percent in September 2017. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales increased 1.5 percent year-over-year, from 135 in September 2017 to 137 last month.
Short sales and REOs accounted for 1.6 and 5.2 percent, respectively, of total Miami sales in September 2018. Short sale transactions increased 3.2 percent year-over-year while REOs increased 0.9 percent.
Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 4 percent a year ago.
Miami Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Miami single-family home sales was 47 days, an 14.6 percent increase from 41 days last year. The median number of days between the listing date and closing date for single-family homes was 91 days, a 1.1percent decrease from 92 days.
The median time to contract for condos was 70 days, a 4.1 percent decrease from 73 days last year. The median number of days between listing date and closing date decreased 7.5 percent to 111 days.
The median percent of original list price received for single-family homes was 95.6 percent. The median percent of original list price received for existing condominiums was 94.7 percent.
National and State Statistics
Nationally, total existing-home sales fell 3.4 percent from August to a seasonally adjusted rate of 5.15 million in September. Sales are now down 4.1 percent from a year ago (5.37 million in September 2017).
Statewide closed sales of existing single-family homes totaled 21,087 last month, up 17 percent compared to September 2017, according to Florida Realtors. Statewide closed condo sales totaled 8,492 last month, up 14.6 percent compared to a year ago.
The national median existing-home price for all housing types in September was $258,100, up 4.2 percent from September 2017 ($247,600). September's price increase marks the 79th straight month of year-over-year gains.
September was the 81st month-in-a-row (over six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $251,610, up 4.9 percent from the previous year, according to Florida Realtors. The statewide median price for condo-townhouse units in September was $182,500, up 5.5 percent over the year-ago figure.
Miami's Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 35.4 percent of September 2018 total closed sales, compared to 43.5 percent last year. Miami cash transactions are almost double the national figure (21 percent).
Miami's high percentage of cash sales reflects South Florida's ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash. Miami has a higher percent of cash sales for condos due to lack of financing approvals for buildings.
Condominiums comprise a large portion of Miami's cash purchases as 48.9 percent of condo closings were made in cash in August compared to 21.1 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 9.8 percent in September from 6,060 active listings last year to 6,652 last month. Condominium inventory increased 4.1 percent to 15,435 from 14,834 listings during the same period in 2017.
The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single family homes.
Monthly supply of inventory for single-family homes increased 10.7 percent to 6.2 months, which indicates a balanced market. Existing condominiums have a 13.6-month supply, which indicates a buyer's market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of September increased 5.7 percent year-over-year, from 20,894 to 22,087. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes increased 73.9 percent to 1,682 from 967. New listings of condominiums increased 59.9 percent, from 1,429 to 2,285. The numbers are impacted from the stalled transactions after Hurricane Irma in September 2017.
Nationally, total housing inventory at the end of September decreased from 1.91 million in August to 1.88 million existing homes available for sale, and is up from 1.86 million a year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.3 last month and 4.2 months a year ago.
Wednesday, October 24, 2018
Tuesday, October 9, 2018
New-Home Sales Tick Up as Housing Shortfall Tops 4 Million
The numbers: New-home sales ran at a seasonally adjusted annual 629,000 rate in August, the Commerce Department said Wednesday.
What happened: Sales of newly-constructed homes rose 3.5% compared to July, and edged past the MarketWatch consensus of a 625,000 pace. And the pace of sales in August was 12.7% higher than a year ago. But hefty revisions to prior months were all downward, a reminder that the housing recovery remains grudgingly slow.
Big picture: The government’s home-construction reports are based on small samples and are often revised heavily, making it hard to rely on any one month’s data. For the year to date, sales were 6.9% higher than the same period last year. That year-to-date comparison has declined steadily over the course of the year, a possible sign of flagging momentum.
Another sign may be rising inventories: at the current pace of sales, it would take 6.1 months to exhaust available supply, one of the highest ratios in recent years. In a note out after the release, Amherst Pierpont Securities Chief Economist Stephen Stanley noted that there were 318,000 homes available for sale in August, the highest number since 2011.
What they’re saying: Economists at Freddie Mac analyzed the pace of new housing construction and found that years of underbuilding has left the U.S. with a cumulative shortfall—that is, supply compared to historical averages—of 4.6 million housing units in the years since 2000. That number is especially stark considering that builders constructed a surplus of homes in the bubble years of the last decade.
Investors have turned bearish on publicly-traded builders, even as the fundamentals remain tilted in their favor. On a Tuesday call with analysts, KB Home CEO Jeffrey Mezger addressed that issue, and reiterated the company’s commitment to lower-priced homes, where most housing-watchers think the greatest need—and the greatest opportunity—sits.
“I keep getting back to the current inventory levels which are low. While the national numbers are four months, many of the markets we’re in today at still two months, month-and-a-half, and then when you get into the price points we play at, it’s even less. So there’s not a lot of inventory out there at the affordable price band and much of the headlines, I think, are tied to higher price points that are seeing some slowdown and we’re trying to stay ahead of that,” Mezger said. “We think market conditions are very good and continue to see a great opportunity as we head into 2019.”
KB Home’s results from the most recent quarter beat Wall Street expectations.
Market reaction: The iShares U.S. Home Construction ETF was down in morning trading. Its shares have lost nearly 17% in the year to date.
The realtor.com® editorial team highlights a curated selection of product recommendations for your consideration; clicking a link to the retailer that sells the product may earn us a commission.
What happened: Sales of newly-constructed homes rose 3.5% compared to July, and edged past the MarketWatch consensus of a 625,000 pace. And the pace of sales in August was 12.7% higher than a year ago. But hefty revisions to prior months were all downward, a reminder that the housing recovery remains grudgingly slow.
Big picture: The government’s home-construction reports are based on small samples and are often revised heavily, making it hard to rely on any one month’s data. For the year to date, sales were 6.9% higher than the same period last year. That year-to-date comparison has declined steadily over the course of the year, a possible sign of flagging momentum.
Another sign may be rising inventories: at the current pace of sales, it would take 6.1 months to exhaust available supply, one of the highest ratios in recent years. In a note out after the release, Amherst Pierpont Securities Chief Economist Stephen Stanley noted that there were 318,000 homes available for sale in August, the highest number since 2011.
What they’re saying: Economists at Freddie Mac analyzed the pace of new housing construction and found that years of underbuilding has left the U.S. with a cumulative shortfall—that is, supply compared to historical averages—of 4.6 million housing units in the years since 2000. That number is especially stark considering that builders constructed a surplus of homes in the bubble years of the last decade.
Investors have turned bearish on publicly-traded builders, even as the fundamentals remain tilted in their favor. On a Tuesday call with analysts, KB Home CEO Jeffrey Mezger addressed that issue, and reiterated the company’s commitment to lower-priced homes, where most housing-watchers think the greatest need—and the greatest opportunity—sits.
“I keep getting back to the current inventory levels which are low. While the national numbers are four months, many of the markets we’re in today at still two months, month-and-a-half, and then when you get into the price points we play at, it’s even less. So there’s not a lot of inventory out there at the affordable price band and much of the headlines, I think, are tied to higher price points that are seeing some slowdown and we’re trying to stay ahead of that,” Mezger said. “We think market conditions are very good and continue to see a great opportunity as we head into 2019.”
KB Home’s results from the most recent quarter beat Wall Street expectations.
Market reaction: The iShares U.S. Home Construction ETF was down in morning trading. Its shares have lost nearly 17% in the year to date.
The realtor.com® editorial team highlights a curated selection of product recommendations for your consideration; clicking a link to the retailer that sells the product may earn us a commission.
Thursday, October 4, 2018
Homebuyers purchase second vacation homes for profit over personal use...
Over the past decade, the market for second homes and online travel operations has transformed significantly. A survey by real estate adviser Savills and HomeAway found that recent buyers are prioritizing the purchasing of second vacation homes for financial benefits rather than for personal enjoyment.
“In a low interest rate environment, investors are seeking out income generating assets,” said Paul Tostevin, associate director of Savills world research. “Today’s second home buyers want properties to work for them financially and they are increasingly looking not just to cover costs but to turn a profit.”
This shift in dynamics has proven to be extremely new. The study found that in 2000 eight out of 10 second home owners had never rented their properties to tourists. More recently, research found that more than two-thirds of second home owners rent out their vacation homes to relieve all or part of their ownership expenses.
In 2007 and 2008, the demand for second homes fell and the national housing market declined due to the global financial crisis. Within recent years, while smaller and cheaper properties lead the market with buyers pursuing potential for income and profit, market growth has resumed. Approximately one-third of all rental home owners cover expenses with rental income, while another third generate a profit. Research found that the average gross yield across the sample stands at 6.4 percent, or 3.9 percent after costs, while excluding taxes.
Also, the accessibility of online marketplaces like Airbnb for brief rental accommodations has provided means for which owners to rent out their properties more easily to travelers.
“Over the past ten years, the online travel industry has changed significantly. Staying in a vacation home has transformed, moving from an alternative way to travel to a preferred way to stay,” said Christophe Pingard, vice president of EMEA, HomeAway. “With the rise in the popularity of the category, vacation rentals are not only attracting more travelers, and perhaps most significantly, a new generation of younger travelers accustomed to booking homes over hotels for their trips.”
HomeAway and Savills found that within the United States, owners in Florida account for 14 percent of second homes in the nation, ranking No. 1 on the list for ownership. Following the Sunshine State is California at 7 percent, and North Carolina at 4 percent.
(https://miamiagentmagazine.com/2018/09/19/homebuyers-purchase-second-vacation-homes-profit-personal-use/)
“In a low interest rate environment, investors are seeking out income generating assets,” said Paul Tostevin, associate director of Savills world research. “Today’s second home buyers want properties to work for them financially and they are increasingly looking not just to cover costs but to turn a profit.”
This shift in dynamics has proven to be extremely new. The study found that in 2000 eight out of 10 second home owners had never rented their properties to tourists. More recently, research found that more than two-thirds of second home owners rent out their vacation homes to relieve all or part of their ownership expenses.
In 2007 and 2008, the demand for second homes fell and the national housing market declined due to the global financial crisis. Within recent years, while smaller and cheaper properties lead the market with buyers pursuing potential for income and profit, market growth has resumed. Approximately one-third of all rental home owners cover expenses with rental income, while another third generate a profit. Research found that the average gross yield across the sample stands at 6.4 percent, or 3.9 percent after costs, while excluding taxes.
Also, the accessibility of online marketplaces like Airbnb for brief rental accommodations has provided means for which owners to rent out their properties more easily to travelers.
“Over the past ten years, the online travel industry has changed significantly. Staying in a vacation home has transformed, moving from an alternative way to travel to a preferred way to stay,” said Christophe Pingard, vice president of EMEA, HomeAway. “With the rise in the popularity of the category, vacation rentals are not only attracting more travelers, and perhaps most significantly, a new generation of younger travelers accustomed to booking homes over hotels for their trips.”
HomeAway and Savills found that within the United States, owners in Florida account for 14 percent of second homes in the nation, ranking No. 1 on the list for ownership. Following the Sunshine State is California at 7 percent, and North Carolina at 4 percent.
(https://miamiagentmagazine.com/2018/09/19/homebuyers-purchase-second-vacation-homes-profit-personal-use/)
Wednesday, October 3, 2018
Florida neighborhood ranks best for real estate buying and investing
A real estate research firm has picked a neighborhood in Southwest Florida as the "best neighborhood" in the United States based on schools, crime and other factors. The Pine Ridge neighborhood in Naples, Florida, was the nation's best based on six criteria: affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes. More from the AP and National Mortgage Professional Magazine.
NAPLES, Fla. (AP) — A real estate research firm has picked a neighborhood in Southwest Florida as the "best neighborhood" in the United States based on schools, crime and other factors.
ATTOM Data Solutions said Thursday that the Pine Ridge neighborhood in Naples, Florida, was the nation's best based on six criteria.
Those measurements are affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes.
Following Naples was the Westlake neighborhood in Mobile, Alabama; the Union neighborhood in San Jose, California; the Westmoreland neighborhood in Charlotte, North Carolina; and Hunters Hill neighborhood in Denver, Colorado.
ATTOM Data Solutions crunched numbers on almost 11,000 neighborhood housing markets to arrive at the rankings.
NAPLES, Fla. (AP) — A real estate research firm has picked a neighborhood in Southwest Florida as the "best neighborhood" in the United States based on schools, crime and other factors.
ATTOM Data Solutions said Thursday that the Pine Ridge neighborhood in Naples, Florida, was the nation's best based on six criteria.
Those measurements are affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes.
Following Naples was the Westlake neighborhood in Mobile, Alabama; the Union neighborhood in San Jose, California; the Westmoreland neighborhood in Charlotte, North Carolina; and Hunters Hill neighborhood in Denver, Colorado.
ATTOM Data Solutions crunched numbers on almost 11,000 neighborhood housing markets to arrive at the rankings.
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