Miami Housing Update: March 2022
MIAMI HOUSING MARKET UPDATE: MARCH 2022
We know how 2022 started with new records already in January. In February, we have new records too. Miami-Dade County real estate registered its best-ever February sales month as existing condo transactions surged by double according to the new data from the MIAMI Association of Realtors and the Multiple Listing Service (MLS) system.
The first months of the year it’s usually a bit slow. It’s normal. However, we have already seen that so far this year we have set new records. This has been due in part to the fact that in the last two years the demand from buyers has been very high. This is happening at the local level and at a national level as well. Traditionally, sales tend to increase in March, because that is when homebuyers start to get ready with enough time before the next school year in Miami. I am very curious of the next 2 housing updates. Let’s see how they goes.
Miami Dade’s total home sales increased 13.2% year-over-year in February 2022, from 2,485 sales to 2,814.
Single Family Homes Data
Closed Sales
Last month, February, 1,007 single-family homes were sold which is actually almost the same as January 1008 closed and actually a decrease of 7.9% year over year from February 2021 with 1,093.
Median Sale Price
Now, we have a big change in the median sale price for single-family homes in February. Miami-Dade County’s single-family median price increased 19.1% year-over-year in February 2022, increasing from $450,000 to $536,000 and an increase of 3.08% from January 2022 with $520,000. We know that one of the reasons why it is causing this increase is because of luxury sales.
Luxury Market
Single-family luxury home transactions in Miami decreased 6.5% year-over-year to 187 sales in February 2022. Miami’s existing condo luxury sales surged 45.4% year-over-year to 237 transactions.
The highest home in price was sold for $21,000,000 an oceanfront house with 6 bedrooms and with over 7,000 sq. ft. in Miami Beach.
The luxury months of supply continue to trend downward for condos, month-over-month, and year-over-year. Right now, there are 3.2 months of supply in luxury single-family homes; 6.2 months of supply in luxury condos. January remained the same at 3.2 for luxury single-family homes and 6.9 months of supply in luxury condos.
New Listings
We had a total of 1,519 new listings which is down from February 2021, a decrease of 4.7% from last year. Months’ supply of inventory for single-family homes decreased 39.3% from last year to 1.7 months and for condominiums a 74.5% decrease from last year to 2.6 months which means this keeps squeezing. We keep in a strong seller’s market. And as far as the median time to contract in February was 25 days, a 16.7% decrease compared to last year.
Condo & Townhomes Data
Closed Sales
February registered the best-ever February sales month as existing condo transactions. In February, Miami’s existing condo sales increased 29.8%, from 1,392 last year to 1,807. Additionally, we know that there are new condo projects in town, allowing the possibility of people from other states to purchase their investment home or second home here in Miami. In fact, I recently uploaded a new dream project.
Median Sale Price
The median sales price for condos increased to $380,000 in February from $360,000 in January. The median time to contract in February was 38 days and 36.7% decreased from February 2021.
New Listings
For new listings, 2,419 new listings came to the market. That is a 1.4% decrease from last year and actually, a 0.4% decrease compared to January with 2,410.
Months’ Supply of Inventory
And months’ supply of inventory for condos continues to decrease 74.5% to 2.6 months which indicates a seller’s market. The prior month in January we had 2.9 and in December 3.3 months.
Sharon’s Insights
Demand remains at all-time high levels for Miami real estate, that’s a fact. With companies and firms moving to South Florida, low-interest rates, the appeal of property as a hedge against inflation, strong equity market performance are just a few of the factors driving the demand to South Florida.
Additionally, the expectation that interest rates will rise should continue to drive demand in the first quarter of 2022. However, this Fed’s decision for more rate hikes in 2022 should slow the growth of median prices.
Actually last Wednesday, and for the first time in three years, the Federal Reserve raised rates and announced plans for six additional rate hikes by the end of this year to curb national inflation. So indeed, these rate hikes will accelerate the demand for housing in the short term and eventually put downward pressure on median prices.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.76% in February, up from 3.45% in January.
This means that the more you wait to buy, the less probability to qualify for your monthly mortgage payments. The higher the rate, the higher the mortgage payments. So if your budget is tight, or you have decided to wait, don’t do it. You want to lock the lowest interest rate possible.
For those of you that have been renting and are on the fence of buying, if you should buy now or wait, I recently read an article that you are or you will likely pay more rent than you would in California. To give you an example of recent data, the median monthly rent for a one-bedroom apartment in Miami was $2,500 as of March 15, a 35.1% increase from last year, when one-bedroom units went for $1,850.
According to a recent study, among the nation’s Top 100 residential markets, Miami rents increased the most, percentage-wise, over the past year. The study also mentioned other local cities with over a 30% increase.
This is my advice
If you are on the market looking for your house or you will be soon, set the right expectations about this market. That means the terms, prices, contingencies, dates, and other important things that the seller will look at in your offer and compare to the multiples received. You want to send a solid offer from the beginning.
This is a sellers’ market, with no time for counter offers when you are competing with multiple people for the same property. This happened to me very recently. We sent an over-asking offer, with a great amount of out-of-pocket money towards appraisal, anyway, a strong offer and we were outbid because they received an even better and incredibly higher offer than ours.
Have patience, be open-minded to the point of your possibilities, and most importantly listen to your realtor’s recommendations because that is your expert in this crazy market.
Buyers and sellers…
Let’s have a conversation about your plans. Let’s see where you are at the moment.
Don’t wait!
Seller, let’s start by knowing what your home’s new value is. You’ll definitely be surprised by the equity that you have created and this is very important for you if you have been on the fence about selling. Never in history, have we seen a huge jump in equity like what we are seeing right now.
As always, if you would like to download the full report provided by the Miami Realtors I’ve posted a link down in the description below for you to get it.
To see the full report for Single Family Homes click here
To see the full report for Townhouses and Condos click hre
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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Sharon Colón
Your Favorite Real Estate Agent in Miami
Home Miami Realtors
786-376-2398
[email protected]
www.sharoncolonre.com
