Miami home prices have been increasing for five straight years, bringing the most recent (Dec. 2016) median price to $305,000, a 9.5-percent increase from the same time a year prior, according to a new report from the Miami Association of Realtors and the local MLS.
“Low supply and high demand for Miami single-family homes have fueled five-plus years of residential price growth,” said Christopher Zoller, MIAMI’s 2017 chair.
The good news is that single-family home inventory is increasing. It rose 5.2 percent from Dec. 2015 to Dec. 2016, and the market now sits with a 5.7-month supply – just barely shy of the 6 months that experts say is necessary for a balanced market.
Demand fails to match price growth
Demand is not showing the same signs of growth. Single-family sales stagnated in December, falling 0.6 percent year over year, while the median number of days between a home’s listing and closing date remains in the triple digits at 106 days. There was a 26.6-percent leap in sales in the market’s mid range (i.e., $300,000 to $600,000), which represents about 40 percent of all single-family sales. But across all property types, December’s total sales volume still fell 16.4 percent year over year, from $954 million to $797.9 million.
A big part of the decline in volume comes from the condo side of the market.
Condo sales dropped 7.8 percent year over year, despite median sales price increasing 1.3 percent to $210,000. Additionally, the median number of days from listing to closing increased 4.2 percent to 123 days, and inventory increased 16.3 percent to a staggering 12.7-month supply.