Got $515,000? Median sales price for a house in Miami reaches new high
Median sales prices of single-family homes in South Florida jumped again in April, as Latin American buyers and tech newcomers crowded out locals while inventory has significantly tightened, experts say.
The result: Those searching for a home must move farther west or north to afford a home.
In Miami-Dade County, the median sales price for a house grew to $515,000 in April, a 5% increase from $491,250 in March, according to the latest Miami Realtors Association sales report.
Broward experienced an 18% price jump for single-family homes, from $382,000 in March to $464,000 in April. Prices rose for condos by at least 20% for both counties.
Miami-Dade home prices have been rising steadily since May 2020, when the median sales price was $375,714 for a single-family home. Besides a slight dip in February 2021, the migration of buyers from the Northeast and West Coast have fueled demand for homes in South Florida.
The influx of out-of-state residents stems from the growing number of finance and tech firms expanding or relocating to Miami, bringing many of their employees with them, including Blackstone and Thoma Bravo.
Surge in Latin American buyers
Realtors, too, are seeing a surge in buyers from Latin America, as affluent South and Central American buyers park their money in South Florida’s real estate. They’re seeing it as a safe refuge at a time when some countries in the region face upheaval and limited access to the COVID-19 vaccine.
At the Legacy Hotel & Residences in downtown Miami alone, 75% of units went to Argentine, Chilean, Colombian and Mexican investors.
“A few months ago we had zero Latin American buyers,” said Danny Hertzberg, a sales associate for The Jills Zeder Group, a Miami real estate brokerage firm. “Today, we have several contracts with Central American and South American buyers.”
Farther away from prime Miami neighborhoods
For local residents looking to buy, they are getting pushed out of the Miami market, often priced out of Brickell, Miami Beach, Coral Gables, Pinecrest and other high-end neighborhoods.
“Some people will rent and others will move farther out,” said Hertzberg. “For some people, they can live in Broward and commute one or two days a week to Miami-Dade or work remotely entirely. It seems like a large number of people are doing that.”
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As travel restrictions ease, Hertzberg predicts more buyers from Latin America as well as Europe, along with more interest from the Northeast and Silicon Valley.
Miami-Dade
The total number of sales soared by 151.3%, from 1,576 in April 2020 to 3,960 in April 2021. Single-family home sales bounded by 83.1% and condos by 234.2%.
Miami-Dade has only 2.2 months of supply of houses and 7.1 months of condos. A balanced market consists of six to nine months of inventory.
The median sales price of a house jumped by 35% year-over-year, from $382,000 in April 2020 to $515,000 in April 2021. The median sales price of a condo climbed by 23% year-over-year, from $265,000 to $325,000.
Houses closed at 97.9% of the listing price, up from 96% in April 2020. Condos closed at 95.3% of the listing price, slightly higher than 94.4% from last year.
Cash buyers comprised 37.8% of total sales, up year-over-year from 22.1%. The percentage is higher than the national figure of 25%.
Broward
Total sales surged 103.9%, from 1,965 in April 2020 to 4,006 in April 2021. Single-family home sales rose by 80.9% and condos by 126.9%.
Broward has even less inventory than Miami-Dade, with only 1.4 months of supply of houses and 3.4 months of condos. A balanced market consists of six to nine months of inventory.
The median sales price of a house soared by 21.5% year-over-year, from $382,000 in April 2020 to $464,000 in April 2021. The median sales price of a condo climbed by 19.9% year-over-year, from $183,500 to $220,000.
Houses closed at 99.5% of the listing price, up from 96.7% in April 2020. Condos closed at 96% of the listing price, a bit higher than 94.7% last year.
Cash buyers comprised 38.9% of total sales, up year-over-year from 27.8%. The percentage is higher than the national figure of 25%.
