The luxury condo market, a recent sore spot in South Florida due to over development in places like Miami Beach and the Miami mainland, saw strong sales activity and price increases.
Luxury condo inventory in Miami Beach and the barrier islands fell 20% from a year ago. It’s a positive sign that new development, which wound down in 2016 amid tough market conditions, will likely pick up again soon.
The median sales price for a luxury condo in Miami Beach soared to $3.37 million in the second quarter, up 47.6% from $2.28 million last year. Luxury single-family homes on Miami Beach hit $10.76 million in the second quarter, up 34% from $8 million last year.
In mainland Miami, the median price for luxury condos rose 6% year-over-year to nearly $815,000.
Fort Lauderdale’s luxury condo market is moving twice as fast as it was a year ago. And high-end condo markets heated up in Delray and in Palm Beach, which by the end of June had only six months of condo inventory, according to the report.
The strength in areas north of Miami underscores a shift in buying patterns. The historical focus of the second home buyer was Miami, Miami Beach. While that market hasn’t experienced any pain as a result of the shift to the north, buyers from other markets are recognizing the value opportunities in Broward County and elsewhere in South Florida.
South Florida logged robust home sales, especially among luxury condos, in the second quarter of 2018, according to reports Thursday from Douglas Elliman.
Palm Beach saw the greatest number of sales in a single quarter in three years, with 160 homes changing hands on the exclusive island north of Miami. Luxury condo sales in Miami Beach and the barrier islands increased more than 13% compared to this time last year, while luxury condo sales and prices soared in Fort Lauderdale, according to market reports prepared for the brokerage by appraisal firm Miller Samuel.
We’re seeing overall and consistently strong gains in each of our markets. Some of the boost in South Florida are snowbirds leaving high-tax states like New York and Connecticut for good in response to the federal tax overhaul that Congress passed in December.
By the end of June, Miami Beach had 31 months’ worth of luxury condos on the market, down from 44 months a year ago. “The pace of the market feels faster, it’s not fast but it’s faster. The second quarter also marked a jump in the size of units trading hands a sign that big spenders are back in play and looking for more lavish homes.
Thursday, July 26, 2018
Wednesday, July 18, 2018
Brickell City Centre seeks 2M-square-foot expansion
Brickell City Centre has submitted an expansion to build on two additional city blocks.
The proposal would amend the Special Area Plan regulating the development, and increase the SAP area from 11.4 acres to 13.9 acres.
In total, four more towers are now planned at Brickell City Centre, including One Brickell City Centre, North Block, the Tobacco Road site, and Associated Photo property.
The plans have just been recently submitted to the city, have not yet been reviewed, and are subject to change. As of now, the two new towers include:
650 SMA (Tobacco Road site):
54 story tower, with 10-story podium
588 residential units (of which 42 will be under 750 square feet)
89,130 square feet of retail/commercial
839 parking spaces
1.66 acre project site
Associated Photo:
62 story tower, with 12-story podium
384 residential units (of which 144 will be under 750 square feet)
3,200 square feet of commercial/retail
363 parking spaces
.73 acre project site
Parking will be in garages above ground. Most of the existing parking at Brickell City Centre is below ground, and One Brickell City Centre and the North Block are planned to have below grade parking.
Arquitectonica is the project architect.
Saturday, July 7, 2018
Florida was the top state where outside investors purchased and sold commercial property...
Foreign Investment in U.S. Commercial Real Estate Remains Strong, China and Mexico Top Investors
Florida was the top state where outside investors purchased and sold commercial property last year; California was third
WASHINGTON — Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.
NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.
“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.
“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.
Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.
Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.
Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.
The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).
Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.
“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.
The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash.
For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).
NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.
The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Tags: Real Estate
Florida was the top state where outside investors purchased and sold commercial property last year; California was third
WASHINGTON — Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.
NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.
“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.
“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.
Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.
Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.
Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.
The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).
Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.
“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.
The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash.
For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).
NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.
The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Tags: Real Estate
Friday, June 29, 2018
Residential Rents Rising at Faster Rate in Most U.S. Cities
5.3 Percent Fewer U.S. Homes on the Market Than in 2017
According to the May 2018 Zillow Real Estate Market Report, median rent is appreciating more quickly this spring than last in 27 of the 35 largest U.S markets.
Pittsburgh, Detroit and Houston reported the greatest jumps in annual rent growth this spring compared to last. Median rent in all three of these metros was falling at this time last year, but is now appreciating over 1 percent annually.
In some of the nation's most expensive rental markets, median rent is appreciating more slowly now than last spring. In Seattle, for example, where annual rent growth has been among the highest in the country, rent appreciation has slowed from a 5.8 percent annual growth rate last spring, to a 3.3 percent annual growth rate now. A similar trend holds true in Los Angeles, Portland and Boston.
Across the U.S., rent growth has been holding steady at about a 2-3 percent annual appreciation rate for the past 11 months. Median rent rose 2.1 percent over the past year to $1,440 per month.
Saving enough money for a down payment is one of the greatest hurdles to homeownership, and rising rents is one of the main reasons why saving is so difficult. Even in markets where rent growth is slowing, high prices have already been established. With mortgage rates rising and mortgage affordability deteriorating, owning a home may start to feel out of reach for many Americans.
"Over the past two years, rent growth slowed across the country as new apartments hit the market and renters with the financial means to do so increasingly became homeowners," said Zillow Senior Economist Aaron Terrazas. "The slowdown in rent growth was most prominent in the markets that moved most quickly to add units - either because it was easy to build or because of local demands. But the ever-swinging pendulum is again on the move. This spring rent appreciation has perked back up nationwide, though it remains well within a long-term sustainable range. The ebb-and-flow of supply and demand is following slightly different timeliness in different markets, but over the past two years, we have seen similar trends in markets from the Southeast to the Northwest."
Home values continue to appreciate across the country. The median U.S. home value rose just over 8 percent over the past year to $216,000. San Jose, Calif., Las Vegas and Seattle reported the greatest annual home value appreciation among the 35 largest U.S. metros.
The median home value in San Jose is now $1,265,300, up almost 26 percent since last May. Home values rose 15.5 percent over the past year in Las Vegas and 12 percent over the past year in Seattle.
Spring home shoppers will have 5.3 percent fewer homes to choose from than last year, though the pace of inventory declines has been slowing for the past 10 months. Markets with the greatest drop in for-sale inventory are Denver, Atlanta and Pittsburgh. Home shoppers in Denver and Atlanta will have 15 percent fewer homes to choose from than a year ago, and 13 percent fewer in Pittsburgh.
May ended with mortgage rates on Zillow at 4.29 percent, after starting the month at 4.38 percent. May mortgage rates peaked in the middle of the month at 4.51 percent, the highest rate since the beginning of 2013, and hit a month low in the last few days of the month when rates were at 4.28 percent. Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.
May--2018-Zillow-Real-Estate-Market-Report.png
According to the May 2018 Zillow Real Estate Market Report, median rent is appreciating more quickly this spring than last in 27 of the 35 largest U.S markets.
Pittsburgh, Detroit and Houston reported the greatest jumps in annual rent growth this spring compared to last. Median rent in all three of these metros was falling at this time last year, but is now appreciating over 1 percent annually.
In some of the nation's most expensive rental markets, median rent is appreciating more slowly now than last spring. In Seattle, for example, where annual rent growth has been among the highest in the country, rent appreciation has slowed from a 5.8 percent annual growth rate last spring, to a 3.3 percent annual growth rate now. A similar trend holds true in Los Angeles, Portland and Boston.
Across the U.S., rent growth has been holding steady at about a 2-3 percent annual appreciation rate for the past 11 months. Median rent rose 2.1 percent over the past year to $1,440 per month.
Saving enough money for a down payment is one of the greatest hurdles to homeownership, and rising rents is one of the main reasons why saving is so difficult. Even in markets where rent growth is slowing, high prices have already been established. With mortgage rates rising and mortgage affordability deteriorating, owning a home may start to feel out of reach for many Americans.
"Over the past two years, rent growth slowed across the country as new apartments hit the market and renters with the financial means to do so increasingly became homeowners," said Zillow Senior Economist Aaron Terrazas. "The slowdown in rent growth was most prominent in the markets that moved most quickly to add units - either because it was easy to build or because of local demands. But the ever-swinging pendulum is again on the move. This spring rent appreciation has perked back up nationwide, though it remains well within a long-term sustainable range. The ebb-and-flow of supply and demand is following slightly different timeliness in different markets, but over the past two years, we have seen similar trends in markets from the Southeast to the Northwest."
Home values continue to appreciate across the country. The median U.S. home value rose just over 8 percent over the past year to $216,000. San Jose, Calif., Las Vegas and Seattle reported the greatest annual home value appreciation among the 35 largest U.S. metros.
The median home value in San Jose is now $1,265,300, up almost 26 percent since last May. Home values rose 15.5 percent over the past year in Las Vegas and 12 percent over the past year in Seattle.
Spring home shoppers will have 5.3 percent fewer homes to choose from than last year, though the pace of inventory declines has been slowing for the past 10 months. Markets with the greatest drop in for-sale inventory are Denver, Atlanta and Pittsburgh. Home shoppers in Denver and Atlanta will have 15 percent fewer homes to choose from than a year ago, and 13 percent fewer in Pittsburgh.
May ended with mortgage rates on Zillow at 4.29 percent, after starting the month at 4.38 percent. May mortgage rates peaked in the middle of the month at 4.51 percent, the highest rate since the beginning of 2013, and hit a month low in the last few days of the month when rates were at 4.28 percent. Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.
May--2018-Zillow-Real-Estate-Market-Report.png
Saturday, June 23, 2018
Miami Luxury Home Sales Spike 24 Percent Annually in May
Miami Cash Home Buyers Double the National Average
According to the Miami Association of Realtors, total Miami luxury home sales rose 24.1 percent year-over-year in May as existing condominium sales rose for the second consecutive month.
Total Miami luxury sales ($1 million-and-above) increased from 158 to 196 in May 2018, a rise of 24.1 percent. Condo luxury sales led the surge by posting a 58.6 percent jump (from 58 luxury transactions in May 2017 to 92 last month). Condo and single-family $1 million-and-above transactions have each now increased year-over-year in four of the last five months.
"Miami real estate luxury sales continue trending upward," MIAMI Chairman of the Board George C. Jalil said. "Strong pent-up demand for $1 million-and-above Miami properties, sellers becoming more reasonable with their prices and the federal tax reform leading more home buyers from high-taxed northern states to purchase in Florida, which has no state income tax, are several key factors."
Miami Condo Sales Increase for Second Consecutive Month
Miami existing condominium sales increased 0.6 percent year-over-year in May 2018, rising from 1,384 to 1,392. The increase comes on the heels of a strong April 2018 which saw condo transactions jump 24.6 percent.
Total Miami home sales decreased 3.9 percent year-over-year, from 2,728 to 2,622. Miami single-family home sales decreased 8.5 percent in May 2018, from 1,344 to 1,230. The decrease is due to a lack of inventory in lower price points. Inventory decreases for Miami single-family homes selling at $400,000 and below.
Total sales volume increased to $1.3 billion from $1.2 billion in May 2017.Existing condos saw the biggest increase, rising from $517.9 million total sales volume to $645.8 million (an increase of 24.7 percent). Single-family home total dollar volume rose 3.4 percent, from $651.2 million to $673.6 million.
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.
6.5 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 7.7 percent in May 2018, increasing from $325,000 to $350,000. Miami single-family home prices have risen for 78 consecutive months, a streak 6.5 years. Existing condo prices rose 8.9 percent, from $225,000 to $245,000 in May. Condo prices have increased in 81 of the last 84 months.
Low mortgage rates makes purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the seventh straight month to 4.59 percent in May (highest since 4.64 percent in May 2011) from 4.47 percent in April. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 6.4 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 10.0 percent in May 2018. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales declined 38.3 percent year-over-year, from 274 to 169 last month.
Short sales and REOs accounted for 1.3 and 5.1 percent, respectively, of total Miami sales in May 2018. Short sale transactions dropped 52.1 percent year-over-year while REOs fell 33.5 percent.
Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 5 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 44 days, an 8.3 percent decrease from 48 days last year. The median number of days between the listing date and closing date for single-family properties was 92 days, a 6.1 percent decrease from 98 days.
The median time to contract for condos was 73 days, a 2.7 percent decrease from 75 days last year. The median number of days between listing date and closing date decreased 2.6 percent to 112 days.
The median percent of original list price received for single-family homes was 96.0 percent. The median percent of original list price received for existing condominiums was 93.3 percent.
National and State Statistics
Nationally, total existing-home sales decreased 0.4 percent to a seasonally adjusted annual rate of 5.43 million in May from downwardly revised 5.45 million in April. With last month's decline, sales are now 3.0 percent below a year ago and have fallen year-over-year for three straight months.
Statewide closed sales of existing single-family homes totaled 28,071 last month, up 0.8 percent compared to May 2017, according to Florida Realtors. Statewide closed condo sales totaled 12,012 last month, up 4.1 percent compared to a year ago.
The national median existing-home price for all housing types in May was $264,800, an all-time high and up 4.9 percent from May 2017 ($252,500). May's price increase marks the 75th straight month of year-over-year gains.
The statewide median sales price for single-family existing homes was $255,000, up 6.7 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in May was $188,688, up 6 percent over the year-ago figure.
Miami's Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 39.0 percent of May 2018 total closed sales, compared to 39.4 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 50.9 percent of condo closings were made in cash in May compared to 25.5 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 0.4 percent in May from 6,195 active listings last year to 6,219 last month. Condominium inventory increased 2.2 percent to 15,502 from 15,326 listings during the same period in 2017.
The increase in inventory is for properties above $400,000. The market had a 3.5 percent jump in properties listed for $400,000 to $599,999 in May 2018, 4.4 percent for $600,000 to $999,999, and 3.4 percent for $1 million and above.
Miami saw a drop in inventory for properties below $400,000.
Monthly supply of inventory for single-family homes increased 7.1 percent to 6.0 months, which indicates a balanced market. Existing condominiums have a 14.1-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 May increased 0.92 percent year-over-year, from 21,521 to 21,721. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 0.4 percent to 1,881 from 1,888. New listings of condominiums increased 8.1 percent, from 2,431 to 2,617.
Nationally, total housing inventory at the end of May climbed 2.8 percent to 1.85 million existing homes available for sale, but is still 6.1 percent lower than a year ago (1.97 million) and has fallen year-over-year for 36 consecutive months. Unsold inventory is at a 4.1-month supply at the current sales pace (4.2 months a year ago).
According to the Miami Association of Realtors, total Miami luxury home sales rose 24.1 percent year-over-year in May as existing condominium sales rose for the second consecutive month.
Total Miami luxury sales ($1 million-and-above) increased from 158 to 196 in May 2018, a rise of 24.1 percent. Condo luxury sales led the surge by posting a 58.6 percent jump (from 58 luxury transactions in May 2017 to 92 last month). Condo and single-family $1 million-and-above transactions have each now increased year-over-year in four of the last five months.
"Miami real estate luxury sales continue trending upward," MIAMI Chairman of the Board George C. Jalil said. "Strong pent-up demand for $1 million-and-above Miami properties, sellers becoming more reasonable with their prices and the federal tax reform leading more home buyers from high-taxed northern states to purchase in Florida, which has no state income tax, are several key factors."
Miami Condo Sales Increase for Second Consecutive Month
Miami existing condominium sales increased 0.6 percent year-over-year in May 2018, rising from 1,384 to 1,392. The increase comes on the heels of a strong April 2018 which saw condo transactions jump 24.6 percent.
Total Miami home sales decreased 3.9 percent year-over-year, from 2,728 to 2,622. Miami single-family home sales decreased 8.5 percent in May 2018, from 1,344 to 1,230. The decrease is due to a lack of inventory in lower price points. Inventory decreases for Miami single-family homes selling at $400,000 and below.
Total sales volume increased to $1.3 billion from $1.2 billion in May 2017.Existing condos saw the biggest increase, rising from $517.9 million total sales volume to $645.8 million (an increase of 24.7 percent). Single-family home total dollar volume rose 3.4 percent, from $651.2 million to $673.6 million.
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.
6.5 Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 7.7 percent in May 2018, increasing from $325,000 to $350,000. Miami single-family home prices have risen for 78 consecutive months, a streak 6.5 years. Existing condo prices rose 8.9 percent, from $225,000 to $245,000 in May. Condo prices have increased in 81 of the last 84 months.
Low mortgage rates makes purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased for the seventh straight month to 4.59 percent in May (highest since 4.64 percent in May 2011) from 4.47 percent in April. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop, Reflecting Healthy Market
Only 6.4 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 10.0 percent in May 2018. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales declined 38.3 percent year-over-year, from 274 to 169 last month.
Short sales and REOs accounted for 1.3 and 5.1 percent, respectively, of total Miami sales in May 2018. Short sale transactions dropped 52.1 percent year-over-year while REOs fell 33.5 percent.
Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 5 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 44 days, an 8.3 percent decrease from 48 days last year. The median number of days between the listing date and closing date for single-family properties was 92 days, a 6.1 percent decrease from 98 days.
The median time to contract for condos was 73 days, a 2.7 percent decrease from 75 days last year. The median number of days between listing date and closing date decreased 2.6 percent to 112 days.
The median percent of original list price received for single-family homes was 96.0 percent. The median percent of original list price received for existing condominiums was 93.3 percent.
National and State Statistics
Nationally, total existing-home sales decreased 0.4 percent to a seasonally adjusted annual rate of 5.43 million in May from downwardly revised 5.45 million in April. With last month's decline, sales are now 3.0 percent below a year ago and have fallen year-over-year for three straight months.
Statewide closed sales of existing single-family homes totaled 28,071 last month, up 0.8 percent compared to May 2017, according to Florida Realtors. Statewide closed condo sales totaled 12,012 last month, up 4.1 percent compared to a year ago.
The national median existing-home price for all housing types in May was $264,800, an all-time high and up 4.9 percent from May 2017 ($252,500). May's price increase marks the 75th straight month of year-over-year gains.
The statewide median sales price for single-family existing homes was $255,000, up 6.7 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in May was $188,688, up 6 percent over the year-ago figure.
Miami's Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 39.0 percent of May 2018 total closed sales, compared to 39.4 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 50.9 percent of condo closings were made in cash in May compared to 25.5 percent of single-family home sales.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
Inventory of single-family homes increased 0.4 percent in May from 6,195 active listings last year to 6,219 last month. Condominium inventory increased 2.2 percent to 15,502 from 15,326 listings during the same period in 2017.
The increase in inventory is for properties above $400,000. The market had a 3.5 percent jump in properties listed for $400,000 to $599,999 in May 2018, 4.4 percent for $600,000 to $999,999, and 3.4 percent for $1 million and above.
Miami saw a drop in inventory for properties below $400,000.
Monthly supply of inventory for single-family homes increased 7.1 percent to 6.0 months, which indicates a balanced market. Existing condominiums have a 14.1-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 May increased 0.92 percent year-over-year, from 21,521 to 21,721. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes decreased 0.4 percent to 1,881 from 1,888. New listings of condominiums increased 8.1 percent, from 2,431 to 2,617.
Nationally, total housing inventory at the end of May climbed 2.8 percent to 1.85 million existing homes available for sale, but is still 6.1 percent lower than a year ago (1.97 million) and has fallen year-over-year for 36 consecutive months. Unsold inventory is at a 4.1-month supply at the current sales pace (4.2 months a year ago).
Wednesday, June 20, 2018
The Average U.S. Home Sells in 34 Days...
According to Redfin, across 174 U.S. housing markets, the typical home sold in May 2018 went under contract in 34 days, breaking April's record of 36 days, which was the fastest month on record going back to 2010. Amid the speed, the national median home sale price rose to $305,600, a 6.3 percent increase from May 2017.
The number of newly listed homes for sale increased 4.3 percent compared to May of last year, driving a 3.6 percent increase in the number of homes sold. However, the overall supply of homes declined 5.4 percent during the same time period. Just 2.5 months of supply remained at the end of the month, compared to the six months that generally signals a balanced market.
Among homes that sold in May 2018, 27.6 percent sold above their list price, the highest percentage Redfin has recorded, indicating strong competition for the few homes available. At the same time, nearly a quarter of homes for sale had a price drop in May, the highest percentage of price drops since September of 2017.
"Prices are still increasing, but not at the same rate we saw earlier in the spring," said Redfin senior economist Taylor Marr. "The record percentage of homes sold above list price is at odds with the higher percentage of price drops in May. This tells us that while it's still very much a seller's market, price growth and rising mortgage rates may be pushing buyers to the limit of what they're able to pay."
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For the seventh month in a row, San Jose topped the nation with price growth over 25 percent. The supply of San Jose homes fell 13.8 percent compared to last year. That drop is actually the smallest decline in a 16-month stretch of inventory declines, an indication of the intensity of San Jose's inventory shortage. A bit of good news for San Jose buyers: the number of homes newly listed in May ticked up 11.2 percent compared to last year.
After a prolonged period of inventory declines, some metro areas are finally seeing more homes hit the market. Washington, D.C. and Portland, OR have now had four months in a row of year-over-year increases in inventory. Seattle inventory increased for the second month in a row, up 17.4 percent in May compared to last year.
"Two months of growing inventory is a positive sign for Seattle buyers, but the previous 43 consecutive months of inventory declines won't be reversed overnight," said Jessie Culbert, a Redfin agent in Seattle. "Even so, we can already feel a slight easing in the market. Homes are still selling quickly and often over-asking, but where last May a seller may have gotten 15 to 20 offers, this May it was two to five."
Other May 2018 Market Highlights
Competition
Denver was the fastest market, with the typical home going under contract in just six days. Seattle and Tacoma, WA were the next fastest markets at seven median days on market, followed by Boston and Grand Rapids, MI at eight median days on market.
The most competitive market in May was San Jose where 83.8% of homes sold above list price, followed by 79.6% in San Francisco, 76.2% in Oakland, 63.1% in Tacoma, WA, and 61.9% in Seattle.
Prices
San Jose had the nation's highest price growth, rising 27.6% since last year to $1,250,000. Tacoma, WA had the second highest price growth at 19.6% year-over-year, followed by Memphis, TN (16.9%), Las Vegas, (15.9%), and Rochester, NY (15.4%).
No metros saw price declines in May.
Sales
Thirteen out of 73 metros saw sales surge by double digits from last year. Warren, MI led the nation in year-over-year sales growth, up 38.5%, followed by Baltimore, up 31.8%. Camden, NJ rounded out the top three with sales up 24.7% from a year ago.
Buffalo, NY saw the largest decline in sales since last year, falling 17.2%. Home sales in Rochester, NY and Baton Rouge, LA declined by 16.6% and 12.8%, respectively.
Inventory
Indianapolis had the largest decrease in overall inventory, falling 37.7% since May of last year. Rochester, NY(-37.1%), Buffalo, NY (-32.8%), and Milwaukee (-22.9%) also saw far fewer homes available on the market than a year ago.
Portland, OR had the highest increase in the number of homes for sale, up 35.3% year over year, followed byDetroit (28.4%) and Allentown, PA (24.4%).
Pricing Strategy
To see trends in sellers' pricing strategies, we compare the list price to the Redfin Estimate, Redfin's automated home-value estimate. When sellers consistently price their homes below the Redfin Estimate in a market, this can indicate a common strategy to deliberately underprice to create a bidding war.
The median list price-to-Redfin Estimate ratio was 93.2% in San Francisco, the lowest of any market. This indicates the typical home for sale in May was listed at 94.1% of its estimated value. Only 5.9% of homes in San Francisco were listed for more than their Redfin Estimate.
Conversely, the median list price-to-Redfin Estimate ratio was 102.4% in Miami and 102.1% in West Palm Beach, FL, which means sellers are listing their homes for more than the estimated value in those metro areas. In Miami, 84.7% of homes were listed above their Redfin Estimate, the highest percentage of any metro.
I can sell your Home or condo for the "Best Price", in the least amount of time. Call for a Free Home Evaluation. (786) 525-9430. MiamiPropertyConsultant.com
Tuesday, June 12, 2018
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The Everything Guide to Selling Your First Home
How to figure out exactly what you want, and how to work with the experts who’ll help you get it. Read
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Copyright 2018 NATIONAL ASSOCIATION OF REALTORS®
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