Miami Real Estate Market Update: November 2023 Highlights

Miami Real Estate Market Update: November 2023 Highlights

The Miami-Dade County real estate market continues to make headlines as we delve into the latest statistics for November 2023. With shifting dynamics, lower mortgage rates, and strong demand, the Magic City is gearing up for a dynamic year in 2024. In this blog post, we'll explore key insights from the Miami Association of Realtors and the Multiple Listing Service (MLS) system's report, providing a comprehensive overview of the market. Additionally, we'll offer insights into the impact of wealth migration and the economic influence of real estate sales on the local economy.

1. Mid-Market Condo Sales Surge In November 2023, mid-market condominium sales in Miami-Dade County, priced between $400,000 and $600,000, experienced an impressive 8.8% year-over-year increase, totaling 137 transactions. This surge in sales indicates a growing demand for mid-range properties in the Miami area.
2. Cash Transactions Dominate What sets Miami apart is the prevalence of all-cash transactions, which accounted for a remarkable 50.2% of all condo sales in November. This figure is nearly double the national average, highlighting Miami's attractiveness to cash buyers.
3. Falling Mortgage Rates One of the most significant developments in the Miami real estate landscape is the decline in mortgage rates. Since their peak in October 2023, mortgage rates have fallen by over 1%. According to MIAMI Chairman of the Board, Ines Hegedus-Garcia, "Mortgage rates falling more than 1% since October's peak is major news for a high-demand real estate market like Miami." These lower rates are expected to have a positive impact on sales numbers in early 2024.
4. Forecasted Growth Chief Economist Gay Cororaton forecasts that Southeast Florida's home sales could expand by approximately 7% year-over-year by the end of 2024, with prices appreciating at a modest pace of 5%. This growth is expected to be driven by lower mortgage rates, increasing demand from first-time buyers, and sustained migration of high-income households into the area.
5. Total Sales Decrease Despite the surging mid-market condo sales, total Miami-Dade sales decreased by 7.8% in November 2023. Elevated mortgage rates and low inventory in key price points contributed to this decline. However, it's essential to note that these statistics do not include South Florida's robust developer new construction market and volume.
6. New Listings on the Rise In a positive sign for prospective buyers, Miami witnessed a 7.7% year-over-year increase in new listings in November 2023. While the market remains favorable to sellers, this influx of fresh supply provides more options for homebuyers.
7. Mortgage Rates on the Decline Mortgage rates in Miami have fallen below 7% for the first time since August 10, 2023, according to Freddie Mac. This development is expected to bolster the local real estate market further.
8. Low Inventory Persists Despite the positive indicators, Miami-Dade County's total inventory remains down by 42.9% from the historical average. This shortage affects both single-family homes and condominiums.
9. Price Appreciation Continues Miami-Dade County continues to experience significant price appreciation. Median prices for single-family homes increased by 11.8% year-over-year, reaching $615,000. Existing condo median prices rose by 6.3% to $420,000. This marks an impressive 12 years of consecutive home price appreciation.
10. Wealth Migration Impact The influx of wealth migration has contributed to rising home prices in South Florida. In 2021, Miami-Dade County saw a boost in household income by $16 billion due to migration, with new households moving into the area boasting substantial average adjusted gross incomes.
11. Economic Impact Each home sale in Miami has a substantial economic impact, generating income for real estate industries, expenditures related to home purchases, and contributing to new construction. In November 2023 alone, Miami's total economic impact from home sales reached an impressive $201 million.
12. Low Distressed Sales Reflecting the health of the market, only 0.9% of all closed residential sales in Miami were distressed in November 2023, significantly lower than in previous years.
13. Miami Outperforms the Nation Miami's median price appreciation surpasses national and state averages, making it an attractive market for both buyers and sellers.
14. Properties Sell Near List Price Homes in Miami are selling close to their original list price, with single-family homes receiving 97% and condos 96% of their original list price.

Whether you're looking for your dream home or considering selling your property in this dynamic market, now is the time to take action. Explore the latest listings on our Home Search page, or find out the current value of your property with our Home Valuation tool. Additionally, if you're wondering about affordability, use our Affordability Calculator to gain valuable insights into your budget.

In conclusion, Miami's real estate market remains dynamic, with strong demand, falling mortgage rates, and a positive outlook for 2024. Whether you're buying, selling, or simply exploring the market, the Magic City offers a wealth of opportunities. Don't miss out on the chance to make your mark in this thriving real estate landscape.