Welcome to my monthly market update for January 2021 in Miami Dade County.
The Miami Dade County market sales jumped in December, again. We ended the year very strong. I knew that we were going to finish strong because of what I’ve been seeing or what we have been seeing through the year if you have been watching my market updates. My predictions were on point. You have to watch in full this month’s market update video because it is very interesting.
Last month December 1,372 single-family homes sold and that number is up from the month before because in November 1,154 closed sales.
I must say and to remember you that this season, December it’s supposed to be a “low season”. If you are a Seller thinking about that people were more into the holidays during the November-December season…. Well, guess what?
That’s a myth. Yup, sellers used to think that. However, the home sales jumped 16.9% year over year AND with low inventory despite the four-month interruption caused by the pandemic. Year-to-date single-family home dollar volume has already exceeded the 2019 total.
Like I said, December 2020 is up compared to December 2019 by 16.9%. In 2019, there were 1,174 closed sales. That is actually an increase bringing the median sale price up again since May. The prior month the median sale price was at $450,000 and now we jumped to $454,900. That is a 1% increase from November and 19.7% from December 2019 from $380,000. Wow! Again that is huge! It is interesting because that is the effect of supply and demand, right? Remember, even with the shortage of supply, the market is moving but is not enough for the big demand of buyers. This trend of the median price going up is highly possible to continue to see it unless we start getting more inventory. Also, this continuing increase in the median price is happening because of different reasons, not only because of the shortage but because of the interest rates we are seeing and the luxury market. The interest rates are the lowest in history. Going back to the shortage of supply, months supply of inventory for single-family homes decreased 41.1% to 3.3 months, which indicates a strong seller’s market.
Let’s talk about it because it does also add to the shortage. According to the MIAMI Chairman of the Board Jennifer Wollmann, “Record-low mortgage rates, intense demand for housing, the return of local in-person K-12 schooling, Florida’s low taxes, low inventory and purchases from home buyers in tax-burdened states, and increased interest from international buyers are all boosting Miami real estate.” South Florida is very attractive for cold-weather states, tax-burdened states and now we are seeing back our international buyers again. People are moving to South Florida!! For the last 6 months or so, we are seeing a big trend of relocated homebuyers from New York, California, New Jersey, Massachusetts, and other states but now we have added different countries like Japan, Mexico, Argentina, Colombia, Brazil, Canada, and Italy. Those countries are the top foreign countries that purchased in Miami-Dade County in December 2020, according to MLS data.
Luxury Home Sales jumped in December 2020. Single-family luxury homes in Miami jumped 108.5% year-over-year to 221 sales in December 2020 and 35.6% from November with 163. That is a huge jump! The highest home was sold for $28M an amazing waterfront brand new construction mansion with over 14,000 sq. foot.
We had a total of 1,311 new listings which is down from the previous month with 1,393 and 10.4% down from last year.
We have been in 109 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 41.1% to 3.3 months, which indicates a strong seller’s market. Inventory for existing condominiums decreased by 5.6% to 11.8 months, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six- and nine-month supply.
As far as the median time to contract in December it took 23 days to contract same as last month and a 54% decrease from the previous year means that in December 2020 properties were selling very fast. Since June, meaning for the last 6 consecutive months the median time to contract has been decreasing and yes it does makes sense with the big buyer’s demand that we are seeing. In today’s market, properties are flying or they are getting sold before even listed.
Ok so now let me give you my advice, if you are thinking to sell, take advantage of what you can get in today’s market for your property. Don’t wait too long because experts are talking that the market is going to start to shift in the next couple of months gradually. So I guess that the highest you can get, the better right?
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