Miami-Dade $1-million-and-up transactions surged triple digits versus pre-pandemic 2019 transactions as total pending home sales and showing appointments rose again for the second consecutive month, according to February 2023 statistics released by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
According to the report, Miami real estate, which posted its second-most total home sales in history in 2022 despite an doubling of mortgage rates, continues to see a surge in domestic and international wealth migration. Unlike other parts of the country, the Miami market continues to see price appreciation and sales are on par or above pre-pandemic 2019 transactions.
“Miami real estate continues to outpace national trends,” MIAMI Chairman of the Board Ines Hegedus-Garcia said. “Property prices in Miami continue to rise at a more modest rate. The region’s real estate market is unique due to the significant number of cash transactions and the high rate of migration. This normalization from the pandemic-fueled era of homebuying indicates that sellers are increasingly open to negotiating contract terms, offering greater flexibility.”
Miami-Dade luxury ($1-million-and-up) transactions rose 111.5% in comparison to pre-pandemic, from 122 in February 2019 to 258 in February 2023. Comparisons to pre-pandemic are better comps as 2021 and 2022 South Florida sales surged to record highs due to pandemic-fueled homebuying, historic low 2% mortgage rates and other factors.
Homebuyers from high-tax, high-density states continue to relocate and purchase in South Florida. Florida ranked No. 1 in the U.S. in largest net gain of adjusted gross income (AGI) due to domestic migration, gaining $23.7 billion, according to most recent IRS-SOI migration data.
Miami-Dade’s out-of-state homebuyers with a mortgage earn nearly $100,000 in median household income, according to research by MIAMI REALTORS® Chief Economist Gay Cororaton. “Current economic and lending conditions are favoring regions with strong real estate market fundamentals like South Florida,” Cororaton said.
The region remains a bargain for prime property ($1M and up) compared to other global cities according to the 2023 Knight Frank Wealth Report. For $1M, homebuyers can purchase 64 square meters of prime property in Miami. That is almost four times more than Monaco (17 square meters), nearly two times more than New York (33) and London (34) and more than Paris, Sydney, Tokyo and more.
Total pending sales rose 16.9% month-over-month, from 2,288 in January 2023 to 2,674 in February 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.
Miami February 2023 total sales decreased 39.9% year-over-year, from 2,814 to 1,692, because it’s in comparison to a historic February 2022 and the current market has lower inventory in specific price points and higher rates. In comparison to February 2019, however, Miami February 2023 total sales are only down 2.7%.
Miami February 2023 condo sales increased vs. February 2019, but are down in comparison to last year. Miami existing condo sales decreased 46.6% year-over-year, from 1,807 in February 2022 to 965 in February 2023, due to lack of inventory and rising mortgage rates. In comparison to February 2019, however, February 2023 sales increased 3.3%, from 934 to 965.
Single-family home sales decreased 27.8% year-over-year, from 1,007 in February 2022 to 727 in February 2023 because of its comparison to a historic February 2022 and the current market has lower inventory in specific price points and higher rates. In comparison to February 2019, Miami February 2023 single-family sales are down 9.7%.
Miami-Dade County single-family home median prices increased 3.5% year-over-year in February 2023, increasing from $536,000 to $555,000. Miami single-family median prices have risen for 135 consecutive months (11.25 years), the longest running-streak on record. Existing condo median prices increased 2.6% year-over-year, from $380,000 to $390,000. Condo median prices have increased in 136 of the last 141 months.
While local median prices have increased so have local household incomes. Miami and West Palm Beach rank in the top-10 in the U.S. in median homebuyer growth (2019 vs 2021). Miami median homebuyer income grew 16.9% to $104,000 in 2021, and West Palm Beach median homebuyer income is $110,000 via Redfin report.
Total active listings at the end of February 2023 increased 37.4% year-over-year, from 7,484 to 10,282. Months’ supply of inventory for single-family homes increased 123.5% to 3.8 months year-over-year, which indicates a seller’s market. Inventory for existing condominiums increased 73.1% to 4.5 months, indicating a seller’s market. A balanced market between buyers and sellers offers between six- and nine-months supply.
Click here to read the February 2023 Miami-Dade Statistical Report.
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