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Miami home sales for existing condominium and single-family rose in January as $1 million-and-up luxury transactions jumped for all properties, according to a new report.
Miami-Dade County existing condominium sales—which are competing with one of the most robust new construction markets in the country — increased 8.1 percent, from 874 to 945, year over year. Total luxury $1-million-and-up sales jumped 29.3 percent, from 99 to 128. Single-family home sales rose 2.1 percent, from 857 to 875. Lack of single-family home supply in mid-price ranges is negatively impacting sales despite strong demand.
“Miami’s economy is adding more jobs and new residents from abroad and domestically continue moving into our vibrant South Florida region,” said George Jalil, a Miami broker and the 2018 MIAMI chairman of the board. “Pent-up demand for Miami housing has led to more home sales, higher median sale prices and a larger total dollar sales volume in January year over year.”
Federal tax reform, which was signed into law Dec. 22, sets a deductions cap for income, sales and property taxes at $10,000. The new cap is leading more residents of states with high property values and state income tax to purchase properties in states such as Florida, which has no state income tax and a pro-business tax structure.
Total Miami Home Sales, Dollar Volume Increase in January
Total existing Miami-Dade County residential sales increased 5.1 percent year-over-year from 1,731 to 1,820.
Total sales volume for all properties accounted for $791.3 million last month, up 12.7% from $702.3 million a year ago. Sales don’t include Miami’s multi-billion dollar new construction condo market.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 12 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
Miami Luxury Sales Surge in January
Total luxury $1-million-and-up sales jumped 29.3 percent, from 99 to 128.
Miami condo luxury sales jumped 58.1 percent, from 43 to 68, in January 2018. Miami condo luxury sales have risen in three out of the last four months (Jan. 2018, Dec. 2017 and Oct. 2017).
Miami single-family luxury home sales rose 7.1 percent, from 56 to 60. Miami single-family luxury sales have risen in three out of the last four months (Jan. 2018, Dec. 2017 and Oct. 2017).
More than Six Consecutive Years of Price Appreciation in Miami
Miami-Dade County single-family home prices increased 6.5 percent in January 2018, increasing from $310,000 to $330,000. Miami single-family home prices have risen for 74 consecutive months, a streak spanning more than six years. Existing condo prices rose 3.5 percent, from $222,250 to $230,000 in January. Condo prices have increased in 77 of the last 80 months.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage moved higher for the fourth straight month to 4.03 percent in January from 3.95 percent in December. The average commitment rate for all of 2017 was 3.99 percent.
Miami Distressed Sales Continue to Drop
Only 9.9 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 12.7 percent in January 2017. In 2009, distressed sales comprised 70 percent of Miami sales.
Total Miami distressed sales declined 18.2 percent year-over-year, from 220 to 180 last month.
Short sales and REOs accounted for 1.8 and 8.1 percent, respectively, of total Miami sales in January 2018. Short sale transactions dropped 37.3 percent year-over-year while REOs fell 12.4 percent.
Nationally, distressed sales accounted for 5 percent of sales, down from 7 percent a year ago.
Miami Real Estate Selling Close to List Price
The median number of days between listing and contract dates for Miami single-family home sales was 47 days, a 23 percent decrease from 61 days last year. The median number of days between the listing date and closing date for single-family properties was 98 days, a 13.3 percent decrease from 113 days.
The median time to contract for condos declined 11.8 percent to 75 days from 85 days. The median number of days between listing date and closing date decreased 6.1 percent to 123 days.
The median percent of original list price received for single-family homes was 95 percent. The median percent of original list price received for existing condominiums was 92.9 percent.
National and State Statistics
Nationally, total existing-home sales decreased 3.2 percent in January to a seasonally adjusted annual rate of 5.38 million from a downward revised 5.56 million in December 2017. After last month’s decline, sales are 4.8 percent below a year ago.
Statewide closed sales of existing single-family homes totaled 16,564 last month, down 1.3 percent compared to January 2017, according to Florida Realtors. Statewide closed condo sales totaled 7,634 last month, up 5.9 percent compared to January 2017
The national median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January’s price increase marks the 71st straight month of year-over-year gains.
The statewide median sales price for single-family existing homes last month was $240,000, up 9.1 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in January was $179,900, up 11.7 percent over the year-ago figure.
Miami’s Cash Buyers Represent almost Double the National Figure
Miami cash transactions comprised 42.4 percent of January 2018 total closed sales, compared to 43.4 percent last year. Miami cash transactions are almost double the national figure (22 percent).
Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash. Miami has a higher percent of cash sales for condos due to lack of financing approvals for buildings.
Condominiums comprise a large portion of Miami’s cash purchases as 54.1 percent of condo closings were made in cash in January compared to 29.8 percent of single-family home sales.
Seller’s Market for Single-Family Homes, Supply Declines in December
Inventory of single-family homes decreased 5.1 percent in January from 6,590 active listings last year to 6,255 last month. Condominium inventory increased 3.1 percent to 15,573 from 15,111 listings during the same period in 2016.
Monthly supply of inventory for single-family homes decreased 1.7 percent to 5.9 months, which indicates a seller’s market. Existing condominiums have a 14.2-month supply, which indicates a buyer’s market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
Total active listings at the end of January increased 0.6 percent year-over-year, from 21,701 to 21,828. Active listings remain about 60 percent below 2008 levels when sales bottomed.
New listings of Miami single-family homes increased 2.2 percent to 1,913 from 1,871. New listings of condominiums increased 5.4 percent, from 2,637 to 2,779.
Nationally, total housing inventory at the end of January rose 4.1 percent to 1.52 million existing homes available for sale, but is still 9.5 percent lower than a year ago (1.68 million) and has fallen year-over-year for 32 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace (3.6 months a year ago).
Source: Miami REALTORS®
Buying a house in Miami
While you’re planning your wedding, you’re understandably thinking about your future together. Depending on your circumstances, that might mean you’re buying a Miami home right in the middle of wedding planning. Ack!
Most financial experts don’t recommend this overlapping strategy of combining two of the most stressful events of your lives, but there are circumstances that make it unavoidable. If you’re in that boat, there are ways to protect your financial future and your nerves.
Couples today are more willing to buy a home together before tying the knot, surveys have shown. Low-rate mortgages, deductible interest and high rents have made buying a better option for most. We’ve compiled some tips to make this adventure a little more predictable.
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Compare credit scores — Remember that purchasing a home is a business deal. The other person’s credit score will affect your ability to get a good mortgage rate, if at all. So go into it knowing the deal, so you’re not surprised. Take into consideration whether it would make more sense to get the loan after you’re legally married. There are benefits to buying before and after.
Get pre-approved before you shop — Getting pre-approved saves you from the disappointment of not getting a mortgage that you thought you could, and it makes a buyer feel more comfortable with accepting your offer. Knowing your budget will remove some of the stress of shopping.
Set up a joint account — You don’t have to combine all your money, but you should have one account together into which you both deposit money to pay bills. You can set up the transfers automatically so that you don’t have to worry about forgetting.
Buy a household organizer — An organizer that you can both use will help you remember what bills are due and when important banking deadlines are. You can check off which bills you’ve already paid and will have an easily-accessible way to double-check your loan application due date, closing date, and other important information, making your communication much simpler and smoother.
Consider a longer engagement — While you might not want to wait for your big day, you’ll be busy on your weekends finding a venue, sampling caterers, going to wedding shows and scheduling your honeymoon. When will you have time to look at houses? By the time your wedding comes, you’ll be too exhausted to enjoy it.
Don’t forget to change your address — When you move, make sure your gifts bought from registries can get to you. Not all packages will get forwarded to your new address, and people will be sending gifts for up to a year after your wedding.
Don’t add to your debt — Buy your Miami house with a mortgage, and pay cash for your wedding. Adding a mountain of credit card debt is no way to start a good marriage. If you have to find ways to save money on the wedding, so be it. You’ll be much happier in the long run.
Consider a foreclosure home — Buying a house in Miami in foreclosure can save you a significant amount off the sale price. The seller may be highly motivated to get the home unloaded, and you’ll get a great deal. Make sure you get a home inspection so that you know what kind of repairs or renovations will be needed and if you’ll be able to afford them. Talk to your lender about loan options, too. Not all will finance a foreclosed home.
Unload your stuff — If you haven’t lived with your intended before your home purchase, you’re going to have a lot of duplicate stuff. Consider getting rid of a lot of it. Sell, donate and combine as much as possible. But don’t allow all the stuff in the home come from one half of the couple. If the husband’s stuff is nicer, the wife can be left feeling like the home doesn’t represent her at all. Be considerate of each other’s belongings. On top of all this, you’ll be getting wedding gifts. Finding a spot for it all can be a challenge, even in a large home.
Get a security system — You don’t want to start your marriage with a burglary or worse. Research home security systems and choose one that’s right for you. A system with electronic home monitoring will give you more peace of mind, especially when you’re on your honeymoon.
Moving might cost more — If you’re moving from two different homes, you might end up with two different moving days, which adds up financially as well as physically. Perhaps the smaller amount of stuff can be moved with the help of friends, and the larger amount can be moved by professionals. Moving is stressful anyway, so do as much as you can to minimize the weight.
Communicate — Make sure that throughout the process, you communicate. Talking about everything is key to making sure each of your needs are met, which is good practice for the rest of your life.
Throughout the process, never forget that what feels like never-ending stress now will be well worth the effort later. Take care of each other, take care of yourself, and good luck on your endeavor!
There comes a time when one has got to say goodbye to the house they called their home and finally be able to move on to better and greener pastures – a new house to live in. Question is: How can you sell the old one to have enough money to buy yourself a new one?
- The right price
Knowing the right price is one of the most crucial decisions you will have to do. Setting the bar too high will certainly turn off potential buyers while going too low will not be worth the effort. See it through the buyer’s eyes and go around competitor houses up for sale. Check if the price on your mind fits the buyers.
- Make use of price points
Ever noticed how buyers look for price ranges rather than an exact amount? Consider setting your price near one of the natural price points. For example, if you plan to sell your house at around $529,900, you will tend to get inquiries from buyers of $527,900. However, if you consider putting it at around $524,900, you get more people to buy your house.
- Offer a bonus to the buyer’s agent
In order to motivate a buyer’s agent, you need to give them a little something to keep their interest in showing your house in this with inventory flooded market – and a bonus does wonders. This little gesture will motivate agents to show your house more frequently and ultimately sell your house at a better price.
- Hire An Aggressive Agent With Digital Marketing Expertise
It is true! Not all agents are created equal. 90% of all home buyers searched online during their home buying process. 89% of new home shoppers use a mobile search engine at the onset and throughout their research and mobile applications are used by 68% of new home shoppers at the onset and throughout their research. Find the full time agent who is dominating the online playing field and hire that agent. An aggressive agent will sell your home for more and faster.
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Different regulations, rules and other parts of the real estate purchasing process can be complicated. Preparing yourself to make a smart real estate decisions through self-education is extremely important and preferred by top-notch real estate advisers.
In the article below, Miami Just Listed will provide you with some great advice on how to purchase a profitable property for a great price.
The value of residential Miami real estate is influenced by educational opportunities – that is, the kind of schools near a house will affect that house’s price. Schools of any sort in close proximity are a plus, but the condition and reputation of the schools are also factors. Schools that parents love will boost a nearby house’s value more than schools that parents consider troubled.
If you have or plan to have a big family, you need to find a home that will be big enough for everyone. Review the house for safety concerns as well, especially if the backyard has a pool or the home has stairs indoors or outside. If you buy a house from a family who has raised their children in it, it should ensure that the house is relatively safe.
Take some time to explore various Miami areas around your potential purchase price on MiamiJustListed.com. Do thorough research into any area in which you plan to purchase Miami real estate in. Miami Just Listed has a great tool that lets you organize properties and receive automatic updates.
If you want a great investment in buying property, you should think about repairing and remodeling it. You’ll experience the benefit of a fast return on investment and increase in property value. The increase in value can sometimes be substantially more than your investment.
Apartment-dwellers should head over to Miami Just Listed offices, and see about buying a new home. When the housing market moves further upward, your home purchase will begin to earn money as an investment.
Write down all the important questions that you need to ask our real estate advisers. For example you will want to know how many homes were sold in a desired neighborhood during the previous year, as well as the number in your target area. Our advisers will answer all your questions professionally. As local market experts we know Miami thoroughly, so please never hesitate to ask us for advice about favorable locations.
If you have toured numerous homes in search for the one that is just right for you, after a while it is hard to remember the amenities of each and every home. An easy way to remedy this problem is to write down the positives and negatives of each home after you finish touring them. By developing this rating system, you can weed out the ones that do not meet your needs and you can choose the home which best meets your needs and rate all other homes against this standard.
Prior to purchasing any Miami home, you always need to check the property thoroughly. There are a lot of people who rush into property purchases that end up being poor decisions, and as a result, they lose significant amount of money and time. There are many questions that you’ll want to find answers to before buying, such as the character of the neighborhood, the area’s crime rate, zoning, the age of any buildings, and tax rate.
Never buy a home that is priced any more than fifty percent higher than comparable homes in the same neighborhood. When you go to resell your house down the line, you will find that neighboring home values greatly influence the value of your own home. Lower-priced homes mean lower market value.
Look for the home that you have always dreamed of getting. Some friends or family might advise you not to upgrade to a larger home, but you should realize that there are those who say it’s a great time to do so. You might want to buy your dream home now, housing prices will only go up from here.
If you know that you are planning to move again in a year or so, do not even bother purchasing a home– you are better of renting. Buying a home that you are not going to be in for a long period of time is too costly and time consuming.
If you are making a major Miami commercial property purchase, it is better to have a trusted real estate adviser working with you than to try to do it alone.
Use these tips to start getting what you need to buy your Miami home. Make sure to incorporate these tips into your search so you can avoid some of the pitfalls that can plague a new home buyer. Have a blast looking for your new home and give us a call at (305) 788-9393 with any questions.
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