Welcome to my monthly market update for December 2020 in Miami Dade County.
The Miami Dade County market sales jumped in November, again, so you need to watch this video because we have interesting facts for this month’s market update. Yes, the market is on fire and has been on fire since May more or less with strong demand and record-low mortgage rates. According to what I have been reading the market will continue like that and probably since summertime. Experts are trying to provide info in 3 months period at a time because of course, we are living in different times but it is very interesting how the market is acting and has been acting since everything started back in March. They are saying that the increasing rate will start to slow down by probably 2nd quarter of next year. However, we will continue to see a strong market.
Last month November 1,154 single-family homes sold and that number is down a little from the month before because in October 1,326 closed sales. We need to remember this season it’s supposed to be a “low season”. However, the home sales jumped 18.7% year over year AND with low inventory. We are still with low inventory.
Like I said, November 2020 is up compared to November 2019 by 18.7%. In 2019, there were 972 closed sales. That is actually a huge jump bringing the median sale price up again since May. The prior month the median sale price was at $435,000 and now we jumped to $450,000. That is a 3.5% increase from October and 23.3% from November 2019 from $365,000. That is the effect of supply and demand. We are in a shortage of supply for the big demand of buyers.
To give you more data about the supply inventory, the Miami single-family homes inventory is down since July 2019. In November, the months of supply of inventory decreased 40% to 3.6 months meaning a strong seller’s market.
Mortgage applications to purchase are 28% higher annually, according to the Dec 2nd Mortgage Bankers Association. We are seeing a big trend of relocated homebuyers from New York, California, and cold weather with higher taxes purchasing homes in South Florida. New Yorkers can get more, bigger homes in South Florida for less money and with no state income tax. Like I mentioned in October, with $1 million in Miami, homebuyers can net 1000 Sq. Foot of prime property, according to Knight Frank’s 2019 The Wealth Report. In New York, you can get 333 Sq. Ft. and in Los Angeles 387 sq. ft.
Now let’s talk about luxury homes. Luxury Home Sales jumped in November 2020. Single-family luxury homes in Miami jumped 120.3% year-over-year to 163 sales in November 2020 and -4.7% from October with 171. The highest home was sold for $20M a waterfront mansion brand new construction with over 6,600 sq. Ft.
We had a total of 1,393 new listings which is down from the previous month with 1,593 and 3.1% down from last year.
We have been in 108 Consecutive Months of Price Appreciation in Miami. The Strong demand coupled with limited supply continues to drive price appreciation in Miami-Dade. And for months of supply inventory for single-family homes decreased by 40% to 3.6 months, which indicates a seller’s market. Inventory for existing condominiums decreased by 1.5% to 13.0 months, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-month supply.
Last month November the median time to contract was only 23 days!!! A big decrease from last year of 57.4%. Since June, meaning for the last 6 consecutive months the median time to contract has been decreasing.
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