How will the Miami real estate market behave in 2022?
Are you considering buying or selling in Miami soon and want some numbers to help you make the best decision?
In my housing market from last month we were talking about the decrease in median price in Miami Dade County but in this blog we are going to talk about what I found in the latest data released by the Miami Association of Realtors last week which numbers are very interesting.
You can also click above to watch the FULL VIDEO with the full report.
Let’s start with the news, Miami-Dade County real estate broke its record for the most annual home sales in only 10 months as of October 2021. As you are aware, last month the hot market set its all-time annual condo sales record. And we still have two more months to count this incredible sales year in our city. Year-to-date, Miami has registered 32,940 existing total homes sales in 10 months, which surpasses the previous annual record of 30,041 transactions in the entire year of 2013, an increase of 9.7%. So far. Again, these numbers are until October so we are still missing 2 more months.
For the total home sales in Miami-Dade County, we had an increase of 8.8% year over year in October 2021 from 2,737 sales to 2,978. Last month, October, 1,161 single-family homes were sold which is actually down 6.4% from September with 1,241 closed and down 12.4% year over year from October 2020 with 1,326. As you can tell, we are seeing a decrease here in both, month over month and year over year. The lack of inventory is still a huge impact or issue in our market. Definitely, this is one of the reasons for the decrease.
The median sale price for single-family homes in October increased to $490,000. That is a 12.6% increase from October 2020. As you remember, last month I talked about the trend of the decrease in median sale price between July, August, and September. But this month the price increased. I would love to see how the numbers will be for the last two months of the year. What will be the trend? What do you think?
Let’s talk now about the shortage of supply for single family homes in Miami. For new listings, the new data shows a decrease from October 2020 with 1.7% and from September 2.2%. For the months’ supply of inventory for single-family homes remained the same at 2.2 months and a 40.5% decrease from last year which means we are still in a strong seller’s market.
To start with, Miami luxury sales jump as out-of-state buyers keep moving to our area. Single-family luxury home transactions in Miami jumped 9.9% year-over-year to 188 sales in October. The highest home was sold for $17M. A luxurious oceanfront and Mediterranean property with 7 bedroom estate with over 12,000 Sq. Ft. located on the prestigious Palm Island. The luxury months of supply continue to trend downward for all property types, month-over-month, and year-over-year. Right now, there are 3.8 months of supply in luxury single-family homes; 8.8 months of supply in luxury condos. But the previous month September there were 3.9 for luxury single-family homes; 9.4 months of supply in luxury condos.
We had a total of 1,566 new listings which is down from October 2020 with a 1.7% decrease from last year. And as far as the median time to contract in October was 22 days, a 21.4% decrease compared to last year.
For over a year we have been seeing a flux of people moving to South Florida. Not only people but companies as well moving to Miami and settling their headquarters in our city. I actually did a video talking about these companies so if you have not watched it, you can do it by clicking HERE
In October, Miami’s existing condo sales increased 28.8%, from 1,411 from last year to 1,817.
Last month, Miami broke the previous year’s record of 17,142 condo sales in 2013, in nine months with 17,942 condo transactions. So of course we are now, for both single family homes and condos above the highest sales year in history that was in 2013 with 2 more months remaining.
This is huge! People are either moving to South Florida or investing here with so many options which in fact new projects are coming soon for investors very interesting.
I will be doing a new video of one of them soon which will get you a high return of investment so SUBSCRIBE to my YouTube channel to get the notification of this new video coming soon.
In the meantime, if interested in knowing more please watch a video that I did talking about new projects in Miami with the flexibility of doing short term rentals and a lot great other things for investors. Click HERE to watch the full video. That’s one of the reasons why investors from NY, CA, and other states are putting their money here and on this type of project. If you know about this, you know baby.
The median sales price for condos decreased to $326,000 in October from $330,000 in September. The condos are still in a trend of prices going down since July (show median sale price table here) which we should keep an eye on here. The median time to contract is now a little faster with 34 days in October and 45.2% decreased from October 2020. The Miami condo market is indeed moving really quick.
Months’ supply of inventory for condos continues to decrease 70.4% to 4 months which indicates a seller’s market. The prior month September we had 4.3 and in August 4.6 months. It keeps getting more and more competitive month over month.
For new listings 2,429 new listings came to the market. That is just 1.4% increase from last year and actually 1.3% decrease compared to September 2021 with 2,460.
While the fade in inventory for the last 12+ months has been imminent with all things that have been happening in Miami like the buyer’s demand and other things, we always are going to find a seasonal decline in inventory in the fall and winter. More inventory is predicted to come back to the market in 2022 as potential home sellers become more relaxed in listing and showing their homes. Another thing that will bring more inventory to the market is the falling number of homeowners in mortgage forbearance. On top of that, we are heading to holidays and people travel a lot. For Buyers, it could be a better season, not that complicated than earlier this year. So if there are buyers right now on their home search, it is because they are super serious about getting their next home. So don’t quit. It is a great time to buy now. Did you know those homebuyers who bought 12 months ago have on average equity of more than $ 50-70,000 already? If not more.
if you have been having any thoughts of selling, this is a great time to do it. Mortgage rates are expected to rise in the coming months, and this will slow home price growth which in fact, we are already seeing. As more sellers put their homes on the market in 2021 and 2022, more inventory will be available, which should help to reduce median prices. Are you aware of your new home’s value? Even if you are not looking to sell, it is always great to get this information, and to get it for free you can complete the form below that I have for you and for future buyers who need help.
We definitely need to keep an eye on the market to find any slight change or trend if we have any thoughts of buying or selling in 2022.
To see the full report for Single Family Homes click here
To see the full report for Townhouses and Condos click here
If you are thinking about buying or selling in Miami, CLICK HERE or you can call me at 786-376-2398.
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