Best January ever for Miami real estate sales and we are starting the year and guess what? We have new records already in 2022.
As you know, last year 2021 was a very red-hot market and we ended the year with so many broken records. The Miami housing market destroyed so many records that ended up being a historic one with its all-time annual total home sales to mention one of the broken records. The demand, for both, domestic and global homebuyers for Miami real estate has never been higher.
Our market, the Miami-Dade County real estate continued its historic home sales with its best-ever January sales month. We need to keep in mind that January is typically a slow month for sales. 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. But that was not the case this January.
Miami Dade’s total home sales started this year with a 19.6% year-over-year increase in January 2021, from 2,211 sales to 2,645. Single-family home transactions increased 4.1%, from 968 to 1,008. Miami existing condo sales increased 31.7%, from 1,243 to 1,637
Last month, January, 1,008 single-family homes were sold which is actually down 25.7% from December with 1,356 closed and actually an increase of 4.1% year over year from January 2020 with 968. January was supposed to be slow, right? Definitely, not this January.
Miami-Dade County single-family median price increased 10.8% year-over-year in January 2021, increasing from $469,500 to $520,000 and a decrease of 0.9% from December 2021 with $525,000.
This increase in median prices is a trend nationwide.
We know that low inventory and high buyer’s demand leads to prices rising, well this is happening nationwide. I must mention that locally the Miami luxury sales is one of the reasons why the large year-over-year increase in median prices. Additionally, the Fed’s decision to raise rates and end bond buying in 2022 will speed up the demand for housing in the short term.
However, eventually it will put downward pressure on median prices but I will talk more about that later.
Single-family luxury home transactions in Miami jumped 20.4% year-over-year to 201 sales in January 2021. Miami’s existing condo luxury sales surged 69.9% year-over-year to 192 transactions.
The highest home in price was sold for $38,500,000 a stunning oceanfront house with 7 bedrooms and with over 11,000 sq. ft. in Miami Beach. Beautiful new modern construction house.
The luxury months of supply continue to trend downward for all property types, month-over-month, and year-over-year. Right now, there are 3.2 months of supply in luxury single-family homes; 6.9 months of supply in luxury condos. December remained the same 3.2 for luxury single-family homes and 7.5 months of supply in luxury condos.
We had a total of 1,401 new listings which is down from January 2020 a decrease of 9.1% from last year. Months’ supply of inventory for single-family homes decreased 41.9% from last year to 1.8 months and for condominiums a 74.3% decrease from last year to 2.9 months which means this keeps squeezing. We keep in a strong seller’s market. And as far as the median time to contract in January was 24 days, a 14.3% decrease compared to last year.
January registered the best-ever January sales month as existing condo transactions.
In January, Miami’s existing condo sales increased 31.7%, from 1,243 from last year to 1,637. There are so many new condo projects in town that are bringing a ton of people from other states and countries. A lot of investors, a lot of second-home buyers, vacation homes.
The median sales price for condos increased to $360,000 in January from $355https://sharoncolonre.com/wp-admin/post.php?post=1148&action=edit#,000 in December. The median time to contract in January was 40 days and 36.5% decreased from January 2020. For new listings, 2,410 new listings came to the market. That is just a 3.6% decrease from last year and actually, a 33.2% decrease compared to December with 1,809.
And months’ supply of inventory for condos continues to decrease 74.3% to 2.9 months which indicates a seller’s market.
The prior month in December we had 3.3 and in November 3.7 months. It keeps getting more and more competitive month over month. And you know, here is the thing, as long as we continue to see these months decreasing, prices are not going to go down. On the contrary, it will remain very competitive.
Even though we are seeing a very low month’s supply of inventory for both single-family homes and condos, more inventory is expected to come to the market this season. However, the expectation that interest rates will rise should continue to drive demand in the first quarter of 2022 but this Fed’s decision for more rate hikes in 2022 should slow the growth of median prices.
Let me go a little deeper about that. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.45% in January, up from 3.10% in December. The average commitment rate across all of 2021 was 2.96%.
This means that the more you wait to buy, the less money you will 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 will be out of the market soon because you won’t qualify. Additionally, in the long term, you will pay even more for your property. You want to lock the lowest interest rate possible, and as I mentioned, we are in a trend of interest rates going up. Not down.
If you are on the market looking for your house or you will be soon, set the right expectations about this market, especially at the time of sending an offer after you have found one that meets all or almost all your needs. You want to send a solid offer from the beginning. What I am trying to say is that Miami real estate is attracting multiple bids and buyers are going over-list price. As an example of this here is some data, the median percent of original list price received for single-family homes was 98.1% in January 2022, up 1.3% from 96.8% last year. The median percent of original list price received for existing condominiums was 97.3%, up 3.2% from 94.3% last year.
Additionally, we know that major U.S. companies and cryptocurrency companies are opening their headquarters in Miami, surging domestic and global migration to South Florida.
Let’s have a conversation about your plans. Let’s see where you are at the moment.
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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