Miami Market Update December 2021
MIAMI HOUSING MARKET UPDATE: DECEMBER 2021
Raising rates, raising median prices, raising everything? Crash Coming? What i
Last month we saw how the numbers increased in median price in Miami Dade County but today we are going to talk about the most recent data posted by the Miami Association of Realtors last week. Make sure to watch until the end to see this insane data.
By now, we know Miami Dade County has now 3 all-time annual records: for total home sales (set in 10 months), all-time annual condo sales (set in nine months), and the all-time annual single-family home sales (set in 11 months).
You can also click above to watch the FULL VIDEO with the full report.
Market Update December 2021
Let’s start with the news, Miami Real Estate Record Year Continues with Best November Ever is the new headline. Did you just read that? Not even the month of November was saved from all this hot market, a time that is usually known for a slower pace for the holidays. Year-to-date, Miami has registered 35,961 existing total homes sales in 11 months, which surpasses the previous annual record of 30,041 transactions in the entire year of 2013, an increase of 19.7%. So far. We have pending 1 more month. Do you think the year will end with a 30+% increase?
Single Family Homes in Miami
Closed Sales
For the total home sales in Miami-Dade County, we had an increase of 22.9% year over year in November 2021 from 2,459 sales to 3,021.
Last month, November, 1,168 single-family homes were sold which is actually slightly up with 0.6% from October with 1,161 closed and up 1.2% year over year from November 2020 with 1,154. As you can tell, we are seeing an increase here when it is supposed to be a slow season with people traveling or in the holiday’s mood.
We still have the issue of the lack of inventory in our market but that does not stop buyers from trying to find their next home.
Median Sale Price
The median sale price for single-family homes in November increased to $502,750. That is an 11.7% increase from November 2020. Since I mentioned last 2 months about the trend of the decrease in median sale price between July, August, and September, now we are seeing an increase for the last two months in our market. When is supposed to be a relaxing season.
But no. This month the price increased again. You know, from what I am seeing, December data is also going to be crazy. A few days ago a recent article was published about the highest home in price sold in Miami in December. How much do you guess it was?? It was a 9 bedroom home.
Luxury Market
Single-family luxury home transactions in Miami jumped 28.2% year-over-year to 209 sales in November 2021. The highest home was sold for $21M. A luxurious property with 5 bedroom estate with over 5,000 Sq. Ft. located on the prestigious Di Lido 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 3.6 months of supply in luxury single-family homes; 8.4 months of supply in luxury condos. The previous month October there were 3.8 for luxury single-family homes; 8.6 months of supply in luxury condos.
New Listings
We had a total of 1,434 new listings which is up from November 2020 with a 2.9% increase from last year. Months’ supply of inventory for single-family homes decreased 41.7% from last year to 2.1 months and for condominiums a 71.5% decrease from last year to 3.7% which means we are still in a strong seller’s market. And as far as the median time to contract in November was 20 days, a 13% decrease compared to last year.
Condo & Townhomes in Miami
Closed Sales
In November, Miami’s existing condo sales increased 42%, from 1,305 from last year to 1,853. This is huge. People are investing in South Florida with so many options. In fact, last week I uploaded a new video with a new project that is a gold mine with huge flexibility for investors getting a high return of investment. I am pretty sure it won’t last because there is a new trend that has been happening here in Miami of maximizing your investment by renting it as a short-term rental with no rental restrictions. You can watch this video and learn more by clicking HERE.
Median Sale Price
The median sales price for condos increased to $346,000 in November from $326,000 in October. The condos are showing a trend of prices going up now as you can see. Let’s see how December numbers will be but I am guessing they will be an increase. We should definitely keep an eye on here. The median time to contract is now 36 days in November and 28% decreased from November 2020. The Miami condo market is indeed moving really quick.
New Listings
For new listings, 2,111 new listings came to the market. That is just a 0.8% increase from last year and actually, a 13% decrease compared to October with 2,429. And months’ supply of inventory for condos continues to decrease 71.5% to 3.7 months which indicates a seller’s market. The prior month October we had 4.0 and in September 4.3 months. It keeps getting more and more competitive month over month.
Sharon’s Insights
Last week, the Fed’s announced that they will be raising rates and end bond buying in 2022. This will cause a demand in housing for buyers that were on the fence (again) and eventually the median prices will start downward because of this increase. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.07 in November, equal to October’s rate. Now, the NAR Chief Economist Lawrence Yun expects the 30-year fixed mortgage rate to increase to 3.7% by the end of 2022. It would be still lower than the pre-pandemic rate of 4%.
Buyers and Sellers…
First, if mortgage rates continue to rise, home price growth will likely slow as a result. Second, as more sellers list their properties in 2022, this could also help moderate the rise in median prices. The more you wait, the worse for you. You either get a higher interest rate with this already news directly from the Fed’s or you won’t get high offers on your house.
The time for you, Seller, to get the max that you can get for your house is now. Otherwise, the market will start to change soon to a neutral or a buyers’ market very soon. I’ve been preparing you for the last months talking about the predictions, about the slowing down of prices, about the craziness. Do not wait any longer to sell your house in Miami.
Let’s start by knowing what has been your home’s value for the last year. I can get the history of that for you for free and of course, see what is today’s new value of your house.
For those of you thinking that we are in a bubble, let me share with you the following; only 0.5% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 1.9% in November 2020. In 2009, distressed sales comprised 70% of Miami sales. So no my friend, there are no indicators we are in the same position, plus, owners now do have a great amount of equity in their homes.
There is only one month to go in 2021, which should be posted by the end of January and we definitely need to keep an eye on the market to find the continuing slight changes and trends in the interest rates if you have any thoughts of buying or selling in 2022.
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 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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Sharon Colón
Your Favorite Real Estate Agent in Miami
Home Miami Realtors
786-376-2398
[email protected]
www.sharoncolonre.com
