Miami Home Sales Spike 35 Percent Annually in September

According to a new report by the Miami Association of Realtors, total Miami-Dade County home sales in September 2018 surged 35.7 percent last month a year after Hurricane Irma brought minimal damage and stalled hundreds of sales in September 2017.

Miami-Dade single-family home sales jumped 43 percent year-over-year, from 684 to 978, in September. The condo market continued trending upward with 29.5 percent more sales in September 2018 vs. September 2017. Miami condo sales have risen in seven of the last nine months. 

"Miami is one of the most resilient communities in the world and our real estate market embodied that resiliency by bouncing back as expected from stalled transactions in September 2017," said MIAMI Chairman of the Board George C. Jalil. "The sales growth continues a trend of increased Miami home sales, particularly in the existing condo market."

Miami Single-Family Home Sales Jump 43 percent

Miami-Dade County single-family home sales increased 43 percent year-over-year, from 684 to 978. The Miami market has registered 9,851 single-family home sales year to date, an increase of 0.7 percent from this time last year.

The largest segment of growth for single-family home sales is the $200,000 to $600,000 range. The segment recorded 757 single-family home sales, an increase of 49 percent from September 2017.

Miami Existing Condo Sales Have Increased in Seven of the last Nine Months

Miami existing condo sales increased 29.5 percent year-over-year in September, from 804 to 1,041. The Miami market has registered 10,531 existing condo sales year to date, an increase of 5.2 percent from this time last year.

The largest segment of growth for existing condo sales is the $150,000 to $300,000 range. The segment recorded 539 condo sales, an increase of 47.7 percent from September 2017.

Sales Dollar Volume Jumps 42.6 Percent to $900 Million 

Total sales volume increased to $900 million from $631.1 million in September 2017. Existing condo sales volume increased from $304.7 million to $374.3 million (an increase of 22.8 percent). Single-family home total dollar volume rose 61.1 percent, from $326.4 million to $525.7 million.

Luxury sales played a significant role in the rise of the total sales volume. Miami single-family $1 million-and-up luxury sales jumped 62.2 percent, from 45 to 73 transactions. Existing luxury condo sales increased 25.6 percent, from 43 to 54 transactions. 

Luxury single-family home sales have now increased for five consecutive months. Luxury existing condo sales have increased in five of the last six months.

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.

Nearly Seven Consecutive Years of Price Appreciation in Miami 

Miami-Dade County single-family home prices increased 7.5 percent in September 2018, increasing from $335,000 to $360,000. Miami single-family home prices have risen for 82 consecutive months, a streak of nearly seven years. Existing condo prices rose 1.3 percent, from $234,500 to $237,500 in September. Condo prices have increased in 85 of the last 88 months.

Low mortgage rates make purchasing a home more affordable. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.63 percent in September from 4.55 percent in August. The average commitment rate for all of 2017 was 3.99 percent.

Miami Distressed Sales Continue to Drop, Reflecting Healthy Market 

Only 6.8 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 9.1 percent in September 2017. In 2009, distressed sales comprised 70 percent of Miami sales.

Total Miami distressed sales increased 1.5 percent year-over-year, from 135 in September 2017 to 137 last month.

Short sales and REOs accounted for 1.6 and 5.2 percent, respectively, of total Miami sales in September 2018. Short sale transactions increased 3.2 percent year-over-year while REOs increased 0.9 percent.

Nationally, distressed sales accounted for 3 percent of sales (lowest since NAR began tracking in October 2008), down from 4 percent a year ago.

Miami Real Estate Selling Close to List Price 

The median number of days between listing and contract dates for Miami single-family home sales was 47 days, an 14.6 percent increase from 41 days last year. The median number of days between the listing date and closing date for single-family homes was 91 days, a 1.1percent decrease from 92 days.

The median time to contract for condos was 70 days, a 4.1 percent decrease from 73 days last year. The median number of days between listing date and closing date decreased 7.5 percent to 111 days.

The median percent of original list price received for single-family homes was 95.6 percent. The median percent of original list price received for existing condominiums was 94.7 percent.

National and State Statistics 

Nationally, total existing-home sales fell 3.4 percent from August to a seasonally adjusted rate of 5.15 million in September. Sales are now down 4.1 percent from a year ago (5.37 million in September 2017). 

Statewide closed sales of existing single-family homes totaled 21,087 last month, up 17 percent compared to September 2017, according to Florida Realtors. Statewide closed condo sales totaled 8,492 last month, up 14.6 percent compared to a year ago.

The national median existing-home price for all housing types in September was $258,100, up 4.2 percent from September 2017 ($247,600). September's price increase marks the 79th straight month of year-over-year gains.

September was the 81st month-in-a-row (over six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $251,610, up 4.9 percent from the previous year, according to Florida Realtors. The statewide median price for condo-townhouse units in September was $182,500, up 5.5 percent over the year-ago figure. 

Miami's Cash Buyers Represent almost Double the National Figure 

Miami cash transactions comprised 35.4 percent of September 2018 total closed sales, compared to 43.5 percent last year. Miami cash transactions are almost double the national figure (21 percent).

Miami's high percentage of cash sales reflects South Florida's ability to attract a diverse number of international home buyers, who tend to purchase properties in all cash. Miami has a higher percent of cash sales for condos due to lack of financing approvals for buildings.

Condominiums comprise a large portion of Miami's cash purchases as 48.9 percent of condo closings were made in cash in August compared to 21.1 percent of single-family home sales.

Balanced Market for Single-Family Homes, Buyer's Market for Condos 

Inventory of single-family homes increased 9.8 percent in September from 6,060 active listings last year to 6,652 last month. Condominium inventory increased 4.1 percent to 15,435 from 14,834 listings during the same period in 2017.

The increase in inventory is for properties above $300,000 for condos and for properties above $600,000 for single family homes.

Monthly supply of inventory for single-family homes increased 10.7 percent to 6.2 months, which indicates a balanced market. Existing condominiums have a 13.6-month supply, which indicates a buyer's market. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

Total active listings at the end of September increased 5.7 percent year-over-year, from 20,894 to 22,087. Active listings remain about 60 percent below 2008 levels when sales bottomed.

New listings of Miami single-family homes increased 73.9 percent to 1,682 from 967. New listings of condominiums increased 59.9 percent, from 1,429 to 2,285. The numbers are impacted from the stalled transactions after Hurricane Irma in September 2017.

Nationally, total housing inventory at the end of September decreased from 1.91 million in August to 1.88 million existing homes available for sale, and is up from 1.86 million a year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.3 last month and 4.2 months a year ago. 

Homebuying in the fall: 6 good reasons not to wait for spring

Spring and summer have long been considered the best time to buy a house. Their seasonal sibling, fall, is usually hidden under a mound of leaves. After all, potential buyers are thinking more about spooky houses and houses filled with the aroma of roast turkey; they aren’t thinking about house-hunting.  

According to Margaret Heidenry in an article for Realtor.com, “The best month to snag a deal when buying a home? October. This isn’t just some random guess; it’s based on RealtyTrac’s analysis of more than 32 million home sales over 15 years. The resulting data showed that on average, October buyers paid 2.6% below estimated market value at the time for their homes.”  

For a $300,000 house, that’s a savings of $7,800. “Those savings are nothing to sneeze at,” Heidenry writes, “so bargain hunters should get hopping once autumn rolls around.”

Szwed lists the following six reasons for buying a home in the fall:

1. You see a house’s exterior issues better.Green grass and plant life around the house may look fantastic in spring or summer. “In fact, you may focus on the beautiful landscaping and not see the deck’s deteriorating wood or the rain gutters hanging precariously along the eaves,” noted Szwed. “Viewing houses in the fall, you can spot exterior flaws and even landscaping problems, setting you up to deal with these issues before you buy the house.”
2. It’s easier to get your agent’s attention.
   In spring or summer, real estate agents are busy.  They have long lists of things to do for many more clients than in the fall. “If you are one of their clients, you may get lost in the agent’s scramble to get too many things done for too many clients,” added Szwed. “In the fall, when things are slower, your agent may be able to devote more time and attention to your house-buying needs.”
3. Pressure to buy is lower.
   You may feel pressured to buy too quickly when houses are selling like hotcakes in the spring and summer. “If you don’t rush, you can carefully consider and compare houses,” stated Szwed. “You can  work your way through the home-buying process at a stress-free pace.”
4. You may find a better deal.
   Fewer buyers may mean sellers sometimes lower their asking price, especially if the house has been on the market throughout the spring and summer. After waiting for months, a seller may be ready to take less money for the house just so they can move on.
5. You may have a better chance of avoiding a bidding war.
   Buyers can take advantage of a seasonal hiatus, like when the kids go back to school because sales slow down at that time. “When the competition for homes weakens, there’s less of a chance that you’ll be outbid by someone else,” said Szwed.
6. You have time to get a tax break.
   “You can deduct certain expenses, including mortgage loan interest and property taxes, on your tax returns,” concluded Szwed. “You’ll have up to December 31st to close on a home and still write off qualifying expenses for a spring tax filing. It may only trim a few hundred dollars off your tax liability but every dollar counts.”

(https://miamiagentmagazine.com/2018/10/08/homebuying-fall-6-good-reasons-not-wait-spring/)

New-Home Sales Tick Up as Housing Shortfall Tops 4 Million

The numbers: New-home sales ran at a seasonally adjusted annual 629,000 rate in August, the Commerce Department said Wednesday.

What happened: Sales of newly-constructed homes rose 3.5% compared to July, and edged past the MarketWatch consensus of a 625,000 pace. And the pace of sales in August was 12.7% higher than a year ago. But hefty revisions to prior months were all downward, a reminder that the housing recovery remains grudgingly slow.

Big picture: The government’s home-construction reports are based on small samples and are often revised heavily, making it hard to rely on any one month’s data. For the year to date, sales were 6.9% higher than the same period last year. That year-to-date comparison has declined steadily over the course of the year, a possible sign of flagging momentum.

Another sign may be rising inventories: at the current pace of sales, it would take 6.1 months to exhaust available supply, one of the highest ratios in recent years. In a note out after the release, Amherst Pierpont Securities Chief Economist Stephen Stanley noted that there were 318,000 homes available for sale in August, the highest number since 2011.

What they’re saying: Economists at Freddie Mac analyzed the pace of new housing construction and found that years of underbuilding has left the U.S. with a cumulative shortfall—that is, supply compared to historical averages—of 4.6 million housing units in the years since 2000. That number is especially stark considering that builders constructed a surplus of homes in the bubble years of the last decade.

Investors have turned bearish on publicly-traded builders, even as the fundamentals remain tilted in their favor. On a Tuesday call with analysts, KB Home CEO Jeffrey Mezger addressed that issue, and reiterated the company’s commitment to lower-priced homes, where most housing-watchers think the greatest need—and the greatest opportunity—sits.

“I keep getting back to the current inventory levels which are low. While the national numbers are four months, many of the markets we’re in today at still two months, month-and-a-half, and then when you get into the price points we play at, it’s even less. So there’s not a lot of inventory out there at the affordable price band and much of the headlines, I think, are tied to higher price points that are seeing some slowdown and we’re trying to stay ahead of that,” Mezger said. “We think market conditions are very good and continue to see a great opportunity as we head into 2019.”

KB Home’s results from the most recent quarter beat Wall Street expectations.

Market reaction: The iShares U.S. Home Construction ETF was down in morning trading. Its shares have lost nearly 17% in the year to date.

The realtor.com® editorial team highlights a curated selection of product recommendations for your consideration; clicking a link to the retailer that sells the product may earn us a commission.

...Housing Trends eNewsletter- Lazaro Lopez

...Housing Trends eNewsletter- Lazaro Lopez

Los compradores de casas compran segundas casas de vacaciones con fines de lucro sobre el uso personal ...

Durante la última década, el mercado de segundas residencias y operaciones de viajes en línea se ha transformado significativamente. Una encuesta realizada por el asesor de bienes raíces Savills y HomeAway encontró que los compradores recientes están priorizando la compra de segundas residencias de vacaciones para obtener beneficios financieros en lugar de para el disfrute personal.

"En un entorno de baja tasa de interés, los inversores están buscando activos generadores de ingresos", dijo Paul Tostevin, director asociado de Savills World Research. "Los compradores de segunda vivienda de hoy quieren que las propiedades funcionen para ellos financieramente y buscan cada vez más no solo cubrir los costos, sino también obtener ganancias".

Este cambio en la dinámica ha demostrado ser extremadamente nuevo. El estudio encontró que en el año 2000, ocho de cada 10 propietarios de segunda vivienda nunca habían alquilado sus propiedades a turistas. Más recientemente, la investigación encontró que más de dos tercios de los propietarios de una segunda casa alquilan sus casas de vacaciones para aliviar la totalidad o parte de sus gastos de propiedad.

En 2007 y 2008, la demanda de segundas viviendas cayó y el mercado nacional de vivienda disminuyó debido a la crisis financiera mundial. En los últimos años, mientras que las propiedades más pequeñas y más baratas lideran el mercado con compradores que buscan un potencial de ingresos y ganancias, el crecimiento del mercado se ha reanudado. Aproximadamente un tercio de todos los propietarios de viviendas de alquiler cubren los gastos con los ingresos por alquiler, mientras que otra tercera parte genera ganancias. La investigación descubrió que el rendimiento bruto promedio en la muestra es de 6.4 por ciento, o 3.9 por ciento después de los costos, mientras se excluyen los impuestos.

Además, la accesibilidad de los mercados en línea como Airbnb para alojamientos de alquiler breve ha proporcionado medios para que los propietarios puedan alquilar sus propiedades más fácilmente a los viajeros.

“En los últimos diez años, la industria de viajes en línea ha cambiado significativamente. Alojarse en una casa de vacaciones se ha transformado, pasando de una forma alternativa de viajar a una forma preferida de quedarse ”, dijo Christophe Pingard, vicepresidente de EMEA, HomeAway. "Con el aumento de la popularidad de la categoría, los alquileres de vacaciones no solo atraen a más viajeros, y quizás lo más importante, una nueva generación de viajeros más jóvenes acostumbrados a reservar casas en hoteles para sus viajes".

HomeAway y Savills descubrieron que dentro de los Estados Unidos, los propietarios en Florida representan el 14 por ciento de las segundas residencias en la nación, ocupando el número 1 en la lista de propietarios. Después del Estado del Sol, California es el 7 por ciento y Carolina del Norte el 4 por ciento.

(https: //miamiagentmagazine.com/2018/09/19/homebuyers-purchase-secon ...)

Florida neighborhood ranks best for real estate buying and investing

A real estate research firm has picked a neighborhood in Southwest Florida as the "best neighborhood" in the United States based on schools, crime and other factors. The Pine Ridge neighborhood in Naples, Florida, was the nation's best based on six criteria: affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes. More from the AP and National Mortgage Professional Magazine.

NAPLES, Fla. (AP) — A real estate research firm has picked a neighborhood in Southwest Florida as the "best neighborhood" in the United States based on schools, crime and other factors.

ATTOM Data Solutions said Thursday that the Pine Ridge neighborhood in Naples, Florida, was the nation's best based on six criteria.

Those measurements are affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes.

Following Naples was the Westlake neighborhood in Mobile, Alabama; the Union neighborhood in San Jose, California; the Westmoreland neighborhood in Charlotte, North Carolina; and Hunters Hill neighborhood in Denver, Colorado.

ATTOM Data Solutions crunched numbers on almost 11,000 neighborhood housing markets to arrive at the rankings.