As a realtor in the Miami real estate market, I see firsthand the exceptional trends and opportunities that make this area unique. It’s no surprise that Miami-Dade County's May sales and appreciation continue to outperform both the nation and the state.
Miami Real Estate: Defying National Trends
Miami real estate is thriving, defying national trends. While other U.S. markets experience declines, Miami's home equity has surged, doubling the national average over the past 15 years. This is due to the influx of high-income households from the Northeast and a high percentage of cash buyers, which helps mitigate the effects of elevated mortgage rates.
Home Equity Gains in Miami-Dade County
Miami-Dade homeowners have seen remarkable equity gains, nearly double the national average. Over the last 15 years, the average home equity in Miami-Dade has increased by $533,955 compared to the U.S. average of $287,111, based on single-family homes purchased in Q1 2009 and sold in Q1 2024.
Consistent Single-Family Home Sales Growth
Miami single-family home sales have grown consistently, with a 6% year-over-year increase in May 2024, rising from 1,040 to 1,102 sales. This marks the sixth year-over-year gain in the past seven months.
Overall Home Sales Slight Decline
Overall home sales in Miami experienced a slight decline of 0.6% year-over-year in May 2024, from 2,412 to 2,397.
Condo Market Fluctuations
Existing condo sales dropped by 5.6% year-over-year in May 2024, from 1,372 to 1,295, primarily due to limited inventory at key price points. About 53% of new condo inventory is priced at $600,000 or above.
Luxury and Mid-Market Condo Sales Surge
Sales of homes priced at $1 million and above surged 9.5% year-over-year in May 2024, from 409 to 448. Mid-market condos, priced between $400,000 and $600,000, saw a 7.5% year-over-year increase, from 334 to 359.
Miami: A Top Market for Luxury Growth
Miami ranks No. 1 in the U.S. for luxury residential market price growth and is recognized as an Emerging Wealth Hub by Knight Frank’s 2024 Wealth Report. Additionally, Miami ranks as the No. 4 U.S. city for millionaire growth rate over the past decade, with a 75% increase.
Price Appreciation Outlook
Gay Cororaton, MIAMI REALTORS® Chief Economist, predicts continued price appreciation despite high mortgage rates. This trend is driven by a rising share of million-dollar home sales and strong competition for lower-priced homes. Mortgage rates are expected to decrease slightly, potentially boosting market activity.
Increased Listings Offering More Choices
New listings in Miami have increased for nine consecutive months, nearing pre-pandemic levels. This rise in inventory provides more options for buyers. In May 2024, new listings increased by 14.12% year-over-year, from 3,280 to 3,743.
Inventory Levels and Market Balance
Miami-Dade's inventory remains 33.9% below the historical average, with significant year-over-year increases in active listings. Single-family home inventory rose 30.8% and condo inventory increased 49.8% in May 2024. The current months' supply of inventory indicates a seller’s market for single-family homes and a balanced market for condos.
Ongoing Home Price Appreciation
Miami-Dade County has seen single-family home median prices rise 6% year-over-year in May 2024, marking 150 consecutive months of price increases. Condo median prices also saw a 2.4% year-over-year increase, continuing a long-term upward trend.
Economic Impact and Market Health
Each home sale in Miami significantly impacts the local economy, contributing to a total economic impact of $294 million in May 2024. The market remains healthy, with distressed sales comprising only 0.9% of all closed residential sales in May 2024, much lower than the national average.
National and State Comparisons
Miami's real estate market outperforms national and state trends. While Florida saw slight declines in closed sales, Miami continues to attract buyers and maintain strong sales figures. The median sales prices for homes in Florida also showed year-over-year increases, reflecting a resilient market.
Cash Sales Prevalence
Cash sales accounted for 38.5% of Miami's closed sales in May 2024, significantly higher than the national average. This high percentage is driven by foreign buyers and those moving from more expensive U.S. markets.
As your dedicated realtor in the Miami market, I am here to help you navigate these trends and make the most of the incredible opportunities available. Whether you're buying or selling, you can count on my expertise to guide you through every step of the process. Let's make your Miami real estate dreams a reality!
About the Author Liz Kenneally is a seasoned real estate agent in Miami with extensive experience in the city's dynamic market. Licensed in community association management, Liz specializes in the coveted neighborhoods of Coral Gables, Dadeland, Continental Park, East Kendall, Palmetto Bay, Pinecrest, South Miami, and The Falls. Fluent in both English and Spanish, she ensures smooth transactions for her diverse clientele. Contact her at 786-423-3348 or through the EMAIL AGENT form provided alongside this blog.