Miami Residential Prices Continue to Climb in January; Prices Still at 2004 Levels

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MIAMI— Miami-DadeCountymediansales pricescontinuedtoriseinJanuaryasexistingsingle-familyhomesandcondominiumssoldclosetolistprice,accordingtoanewreportbythe41,000-member MIAMIAssociationofREALTORS®(MIAMI)andMultipleListingService (MLS)system. Themediansalespriceforsingle-familyexistinghomesrose13.7percentyear-over-yearinJanuary2016,from$237,500to$270,000.Single-familyhomepricesremainat2004levelsdespitefouryearsofincreases.Themediansalespricefor existingcondominiumsincreased8.8percentinJanuary to $205,000from$188,500ayearago.Miami-DadeCounty existing condopriceshaverisenin55ofthelast56months,aperiodencompassingmorethanfourandahalfyears. “Ontheheelsofahistoric2015 thatsawMiamirealestateregisteritsmost-ever single-familyhome sales andits third-mosttotalresidentialtransactions,Miamipropertiesremain inhighdemand,”saidMarkSadek,aCoralSpringsRealtorandthe2016MIAMIChairmanoftheBoard. “Propertiesaresellingforhigherpricesandnearasking.WhiletotalresidentialsalesdecreasedinJanuary,single-familyhomeandcondominiumsalesremain consistentwithhistoricaverages.” TotalSales Finishbelow HighestRecordYear PaceTotalexistingMiami-DadeCountyresidentialsales— whichpostedarecordyearin2013andnearrecordyearsin2014and2015 — decreased12.1percentfrom2,043salesinJanuary2015to1,796lastmonth.January2016’stotal salesareintherangeof MiamisalesduringthepastfiveJanuarys. Miami-DadeCountysingle-familyhometransactionswere 14.4percentloweryear-over-yearinJanuary,from963to824.Existingcondominiumsalesdeclined10.0percentinJanuary2016,from1,080to972. “Strongsalesareimportantforahealthyresidentialrealestatemarket,butitisnotsustainabletosetanewall-timesalesrecordeach year,”saidTeresaKingKinney,chiefexecutiveofficerforMIAMI. “MiamiDade County’sfiveyearsofrecordsaleshavebeenunique intheU.S.realestatemarket.ItisanticipatedMiami willcontinueinasalesrangeconsistentwithastrongmarket.” Miami’s824single-familyhomesalesinJanuary2016 remain consistentwithhistoricalaverages.Thesectorregistered963and823,respectively,inJanuaryduringthesingle-familyrecord-breakingyearsof2013and2014.Miamiposted691single-familyhomesalesinJanuary2012. Miami-Dadehascontinuedtoexperienceasignificantyear-over-yeardecreaseindistressedsales.Increased competitionfromnewcondominiumconstructionhasalsoplayedaroleinthelowertotalresidentialsales.Only22.2percentofallclosedresidentialsalesinMiamiweredistressedlastmonth,includingREO(bank-ownedproperties)andshortsales,comparedto34.9percentinJanuary2015. ShortsalesandREOsaccountedfor4.4and15.7percent,respectively,oftotalMiamisalesinJanuary.Shortsaletransactionsdropped50.6percentyear-over-yearwhileREOsfell42.2percent. Nationally,distressedsaleswere9percentofsalesinJanuary,downfrom11percentayearago. TransactionsinPopularPricePointsRiseSignificantly Single-familyhomesalesspiked18.3percentyear-over-yearinJanuaryinthe$250,000to$400,000sector,growingfrom241to285.This sectorrepresentedabout34.6percentofalltotalsingle-familyhomesales inJanuary2016. Existingcondospricedat$150,000to$300,000rangesawa25.1percentspikeinJanuarysales,increasingfrom299to374. Historic-lowmortgageratesshouldcontinuetoattractfuturebuyers. AccordingtoFreddieMac,theinterestratefora30-yearfixed-ratemortgagesatat3.87percentinJanuary.Interestrateshavestayedbelow4percentforsix consecutivemonths. MiamiRealEstateSellingFaster andClosetoListPriceTheaveragepercentoforiginallistpricereceivedforsingle-familyhomeswas95.5 percentinJanuary2016,anincreaseof1.3 percentfromayearearlier.Theaveragepercentoforiginallistpricereceivedforexistingcondominiumswas93.3 percent,a0.3 percentyear-over-yearincrease. ThemediandaysonthemarketforallMiamipropertiesincreasedinJanuary. Newmortgagedisclosure rules,knownastheTILA-RESPAIntegratedDisclosures(TRID),couldbeplayingarole.Theaverage timetoclosealoannationallyhasgrownsteadilysinceTRIDwentintoeffect,climbingfrom46daysinOctoberto49daysinNovemberandDecemberandto50days inJanuary. InMiami,themediannumberofdaysonthemarketforsingle-familyhomesincreased41.2 percentto72 daysinJanuary2016 from51 daysinJanuary2015.ThemediannumberofdaysonthemarketforMiamicondominiumswas89 days,a34.8 percentincrease from66 daysinJanuary2015.