Miami Condo, Luxury Home Sales Both Enjoy Mid-Summer Sales Uptick

According to the Miami Association of Realtors, Miami’s existing condominium sales increased for the second time in three months and $1-million-and-up luxury transactions surged for all properties in July 2017.

Sales for existing Miami luxury condos, which are competing with a robust new construction market, surged 51.1 percent and luxury single-family home sales jumped 9.6 percent. Sales for $1-million-and-up homes have now increased for five consecutive months. Luxury condo sales have risen for two straight months. Miami condominium sales increased 2.5 percent in July, from 1,104 to 1,132.

“Sellers are becoming more realistic with their prices, especially at the top of the market,” said Christopher Zoller, the 2017 MIAMI chairman of the board and a Coral Gables Realtor. “The recent run-up of the stock market and the potential for interest rate hikes are also encouraging more buyers to come off the sidelines and purchase Miami real estate.”

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.97 percent in July from 3.90 percent in June. The average commitment rate for all of 2016 was 3.65 percent.

Total Home Sales Increase 

Total existing Miami-Dade County residential sales — which posted a record year in 2013 and near record years in 2014 and 2015 — increased 0.8 percent year-over-year from 2,232 to 2,249.

Sales for existing condominiums increased 2.5 percent year-over-year, from 1,104 to 1,132. Sales for Miami single-family homes decreased 1.0 percent year-over-year, from 1,128 to 1,117.

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.

Condo Luxury Sales Surge 51.1 percent 

Luxury existing condo sales increased 51.1 percent year-over-year in July, from 45 to 68. Luxury condo sales have risen for two straight months.

Luxury single-family home sales increased 20.5 percent year-over-year in July, from 73 to 80. Sales for $1-million-and-up homes have now increased for five consecutive months.

Miami single-family mid-market home sales, or transactions for properties listed between $250,000 and $600,000, also rose. Mid-market sales increased 15.5 percent in July, from 574 to 663 sales. Mid-market home sales are the largest segment of all single-family home sales, comprising 59.4 percent.

Miami single-family traditional sales, or non-distressed transactions, rose 4.4 percent. Traditional sales for existing condominiums increased 6.1 percent. This growth in traditional sales shows the health and strength of the Miami market.

Total sales volume for all properties accounted for $961.1 million last month. These sales do not include Miami’s multi-billion dollar new construction condo market.