A report from the Miami Association of Realtors indicates that the real estate market at the local level is in good health. In January sales of condominiums, single-family homes and luxury properties valued at $ 1 million dollars and more increased.
Sales of residential properties in Miami-Dade increased by 5.1 percent in one year, from 1,731 to 1,820. That represented $ 791.3 million in sales just last month, $ 89 million more than in January 2017. This figure does not include multi-million dollar properties.
Miami Association of Realtors, which groups real estate agents in Miami, derives this information from the Multiple Listing Service (MLS), a computerized system that collects the list of properties for sale.
One of the most important conclusions that is derived from last month’s results is that properties in Miami are sold for an amount very close to the price at which the owners put them on the market. That is something like “ask for that mouth that your wish will be granted”.
Another very good index for those who plan to put their property on sale is that they are selling very fast.
On average, it takes 47 days since a single-family house goes on sale and receives a contract. Last year that same process took 61 days. To close the business, only 98 days are missing, a considerable decrease compared to January 2017, when it took 113 to complete the sale.
Selling an apartment takes a little more time, 123 days. But today you will receive a contract in just 75 days, 10 days before what you took last year.
The limited inventory of houses for sale partly determines the prices and speed of sales. In January of last year there were 6,590 single-family homes on the market and this year there are only 6,255.
This inventory has decreased for more than five months, which confirms that we are in the presence of a favorable market for those who sell their property.
As for the apartments, there is an inventory of more than 14 months, which indicates that it is a favorable market for buyers.
A balanced market between buyers and sellers is one that has an inventory of properties between six and nine months.
The biggest obstacle to condo sales is the difficulty in getting financing. Of the 9,307 condo buildings or complexes in Miami-Dade and Broward, only 12 are approved to receive loans from the Federal Housing Administration (FHA). This is a type of loan for those who buy a home for the first time, which allows them to enter as 5 percent or less of the sale price.
Prices increase, but less foreclosed properties are sold
I would like to tell you that it is good news, but for those who have not bought a home yet, it is not. The average price of a single-family home was $ 20,000, reaching $ 330,000 (nationwide is $ 240,500). The increases have been sustained for 74 consecutive months, a streak that lasts for more than six years.
The condos are not far behind. Now they sell for $ 230,000.
At the national and state level, house sales decreased. However, in Florida condominiums increased by 5.9 percent compared to January 2017.
Yes it is a stimulating news that only 9.9 percent of January sales were foreclosed properties (including those held by a bank and short sales). Last year they represented 12.7 percent, and in 2009, 70 percent of the properties were in this category.
At the national level, the percentage of these sales is lower than in Miami. They represent only 5 percent of the market, two percent less than last year.
In this county, cash is king in the real estate market. 42.2 percent of transactions are made in cash . This represents twice the national figure (22 percent).
But, you have to look at it for the good side. There was a decrease from last year, when 43.4 percent of the properties were sold in cash.
These figures prove that South Florida attracts many international buyers. Condo sales are mostly in cash because banks do not approve financing for buildings.
Influencing the market boom in Miami is the fact that many residents of other northern states are moving to South Florida looking for tax savings.
The tax reform approved in December establishes that the limit for deductions for sales, dividends and property taxes is $ 10,000.
Many people come from other states that have a state tax and high property taxes looking for the savings that Florida represents, which does not have a state tax.