12 Years of Consecutive Home Price Appreciation, Economic Impact, and Market Dynamics
By Brosda and Bentley Realtors
Miami-Dade County’s real estate market is defying national trends, showcasing resilience and sustained growth. The latest data reveals significant positive trends, dispelling concerns of a market crash and underlining Miami’s status as a real estate powerhouse.
Unprecedented Home Price Appreciation
In November 2023, Miami-Dade County witnessed a remarkable surge in median home prices, with single-family homes rising by 11.8% and existing condos by 6.3% year-over-year. This marks the 12th consecutive year of price appreciation, setting a record for the longest-running streak in Miami’s real estate history.
According to the US CoreLogic S&P Case-Shiller Index, Miami is tied for the third position in the U.S. for annual home price appreciation, showcasing the city’s robust and consistent growth compared to national averages.
Economic Impact and Robust Sales
Miami’s real estate market is not only about rising prices but also about substantial economic contributions. In November 2023, the local economic impact of home sales amounted to an impressive $201 million. The multiplier effect of real estate transactions influences income generation, housing-related expenditures, and new construction, fostering a healthy economic ecosystem.
The total dollar volume for Miami in November reached $1.33 billion, with single-family home dollar volume increasing by 8.8% year-over-year, despite a slight decrease in condo dollar volume.
Low Distressed Sales and Market Health
Miami’s market health is evident in the low percentage of distressed sales, standing at a mere 0.9% of all closed residential sales in November 2023. This figure is significantly lower than the national average of 1%, highlighting the stability and resilience of Miami’s real estate market.
Comparing this to the distressed sales peak of 70% in 2009 underscores the remarkable recovery and sustained strength of the market over the past decade.
Mortgage Rates and Buyer Activity
Despite a slight increase in mortgage rates, Miami remains an attractive market for buyers. The 30-year fixed-rate mortgage fell below 7% for the first time since August 10, according to Freddie Mac. Showing appointments, a leading indicator for sales, declined only 1% year-over-year in November 2023, showcasing sustained buyer interest.
Inventory Dynamics and Seller’s Market
While the market faces challenges such as inventory shortages, Miami’s real estate is thriving. Total inventory is down 42.9% from the historical average, indicating a high demand and a seller’s market. The months’ supply of inventory for single-family homes is 4.4 months, signaling a competitive seller’s market, while existing condominiums maintain a balanced market with a 6.8-month supply.
Miami Outperforming Nation and State
In comparison to Florida and national trends, Miami’s real estate market stands out. Median prices, closed sales, and market dynamics in Miami consistently outperform state and national averages, positioning the city as a real estate leader.
Miami’s Real Estate Triumph
Miami’s real estate market is not just weathering challenges; it is thriving. With 12 years of consecutive home price appreciation, substantial economic impact, and low distressed sales, Miami continues to attract buyers and investors. The city’s ability to outshine national and state averages underscores its position as a resilient and prosperous real estate market, offering a promising outlook for the future.
If you’re looking for a real estate agent in Miami, I encourage you to contact Brosda & Bentley Realtors. We’re here to help you find your dream home and make your life in Miami an unforgettable experience.
💎 Visit our Website: brosdaandbentley.com
📞 Contact Us: (305) 788–9393
