Miami, a tale of two markets
According to a new report by the Miami Association of Realtors, Miami single-family home sales, median prices, traditional transactions and dollar volume increased year-over-year in April 2017. Single-family home sales in Miami expanded 3.7 percent year-over-year in April, from 1,150 to 1,192. Single-family luxury sales (up 56.5 percent) and median prices (up 12.3 percent to $320,000) rose by double figures. Single-family traditional sales (up 15.1 percent) and dollar volume (up 22.7 percent to $603.6 million) also registered increases. "April's statistical report points to positive market expansion for Miami real estate," said Coral Gables Realtor Christopher Zoller, the 2017 MIAMI chairman of the board. "A lack of local buildable land puts high value and demand for existing Miami single-family homes. Existing condominiums, meanwhile, have seen five-plus years of price appreciation." According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage declined for the first time in six months, dipping to 4.05 percent in April from 4.20 percent in March. The average commitment rate for all of 2016 was 3.65 percent. Total Sales Decline But Remain in Line with Historical Averages Total existing Miami-Dade County residential sales -- which posted a record year in 2013 and near record years in 2014 and 2015 -- decreased 4.8 percent year-over-year from 2,419 to 2,303. Sales for existing condominiums, which are competing with a robust new construction market, declined 12.5 percent year-over-year. A shortage of existing condo properties at popular price points impacted sales. The lack of access to mortgage loans is also impacting 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.
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