Miami-Dade residential sales volume plummets in July: report

An aerial view of Miami's Brickell neighborhood (Credit: creative commons user Towpilot)
An aerial view of Miami's Brickell neighborhood (Credit: creative commons user Towpilot)

Miami-Dade residential sales volume took a nosedive in July, plummeting by 20.8 percent year-over-year, although prices keep rising, a new report from the Miami Association of Realtors shows. 

The scenario adds to a region-wide trend, as Broward and Palm Beach counties this week reported similar sales declines amid higher prices.

Single-family home sales in Miami-Dade fell 16.4 percent in July, dropping from 1,350 to 1,128. Sales volume even dipped below the 1,229 homes sold in July 2014, due largely to an inventory shortage of properties priced below $300,000, according to data from the association and the Multiple Listing Service.

Condominium sales dropped at an even greater clip, by 24.7 percent in July, from 1,467 to 1,104, as existing condos compete with the preconstruction market.

The association said the lack of available distressed properties has played a role in the declines. Total Miami distressed sales have declined 55.3 percent year-over-year, from 734 transactions in July 2015 to 328 last month. Only 14.7 percent of all closed residential sales in Miami were distressed last month, including bank-owned properties and short sales, compared to 26.1 percent in July 2015, according to the report.

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Still, prices are rising, continuing the nearly five-year trend of price appreciation, as properties sell close to list price, according to the report.

In July, median sale prices for single-family homes in Miami-Dade rose 7.9 percent to $299,000. Condominium prices jumped 15.4 percent to $225,000. Single-family home prices have climbed for 56 consecutive months, while condo prices have increased in 60 of the last 62 months, the association said.

Inventory of single-family homes is also rising, up 8.1 percent in July to 6,289 listings, though inventory has dropped 34.3 percent for homes priced below $300,000. Condominium inventory increased 19.1 percent to 14,091 listings in July. That means single-family homes have a 5.7-month supply, which indicates a sellers’ market, the association said. Existing condominiums have an 11.6-month supply, which is considered a buyers’ market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

The picture in Miami-Dade largely mimics that of Broward and Palm Beach counties. In Broward, sales volume dipped by 10.6 percent in July, and condo and townhome sales fell 12 percent. Condo and townhome prices rose 4.4 percent to $143,000, and single-family homes increased 2.6 percent to $320,000.

In Palm Beach County, July home sales slid by nearly 15 percent year-over-year, while sales of condos and townhomes fell by 15.5 percent. Yet the median price for a home hit $317,250 in July, rising 11.3 percent compared to the same month last year. Condo prices also spiked 17 percent $143,000 per unit.