Miami Housing Market: Prices, Trends, Forecast 2024

Home Sales in Miami

Miami-Dade County single-family home sales rose 6% year-over-year in May 2024, from 1,040 to 1,102 homes. This increase highlights South Florida's ability to buck national trends due to its robust migration, job market, and significant percentage of cash buyers. Miami has seen year-over-year gains in six of the last seven months for single-family home sales.

• Total home sales in Miami declined 0.6% year-over-year in May 2024, from 2,412 to 2,397 – MIAMI Association of Realtors (MIAMI).
• Existing condos saw a decrease of 5.6% year-over-year in May 2024, from 1,372 to 1,295, primarily due to inventory shortages at key price points.
• Homes priced $1M and up surged 9.5% year-over-year in May 2024, from 409 to 448.
• Mid-market condos (priced between $400,000 to $600,000) increased 7.5% year-over-year in May 2024, from 334 to 359.

Miami Home Prices

Miami-Dade County single-family home median prices increased 6% year-over-year in May 2024, rising from $620,000 to $650,000. Miami has experienced 150 consecutive months of price appreciation, making it the longest running-streak on record. Single-family home prices have increased by 242.1% from May 2012 to May 2024.

Existing condo median prices also saw an increase of 2.4% year-over-year, from $415,000 to $425,000. Condo prices have stayed even or increased in 150 of the last 156 months, with an overall rise of 183.3% from May 2012 to May 2024.

Despite rising prices, Miami remains a value compared to other global cities. According to the 2024 Knight Frank Wealth Report, $1M can purchase at least 60 square meters of prime property in Miami, which is significantly higher than in cities like Sydney, Shanghai, Paris, Los Angeles, New York, and others.

Miami Housing Supply

Miami new listings have increased for the ninth consecutive month and are nearing pre-pandemic levels, providing more options for home buyers. In May 2024, Miami's total new listings increased by 14.12% year-over-year, from 3,280 to 3,743.

• Overall inventory is down 33.9% from the historical average for Miami, with the current inventory at 13,405 compared to the historical average of 20,302.
• Total active listings increased by 43.7% year-over-year in May 2024, from 9,331 to 13,405.
• Inventory of single-family homes increased by 30.8% year-over-year, from 3,018 to 3,949.
• Condominium inventory increased by 49.8% year-over-year, from 6,313 to 9,456.

Miami Housing Market Trends

Several key trends are shaping the Miami housing market in 2024:

• Miami's home equity gains have nearly doubled the national figure over the last 15 years, with homeowners earning $533,955 compared to the U.S. average of $287,111.
• The price appreciation continues despite high mortgage rates, driven by the rising share of million-dollar home sales and competition for lower-priced homes.
• Migration into Southeast Florida remains strong, with 153,347 driver licenses exchanged for Florida licenses in 2023, an 8.3% increase from 2022. New York, New Jersey, and California are the top feeder states.
• The Miami real estate market has a significant economic impact, contributing $294 million to the local economy in May 2024.
• Distressed sales remain low, representing only 0.9% of all closed residential sales in May 2024.

The Miami real estate market continues to outperform national and state trends, with strong sales, price appreciation, and economic impact.

Current Market Overview

The Miami-Fort Lauderdale-West Palm Beach housing market has experienced significant changes over the past year. The average home value in this region is currently $490,171, reflecting an increase of 6.4% from the previous year. Homes typically go to pending status in around 39 days. This section will delve into the various metrics that define the current state of the Miami housing market.

Future Predictions

Considering the current data and trends, the Miami housing market is expected to maintain its upward trajectory, albeit at a slower pace. Here are some future predictions:

• Steady growth: The market is likely to see continued but moderate growth in home values.
• Balanced market: The sale to list ratio and the negotiation trends suggest a balanced market where both buyers and sellers can find favorable conditions.
• Investment opportunities: With a stable growth forecast, Miami remains an attractive destination for real estate investors looking for steady returns.

Other Factors Related to Real Estate Investing

When contemplating investment in the Miami real estate market, it's essential to consider these additional factors:

• Market Trends: Staying informed about market trends, such as price appreciation, rental rates, and property supply, is crucial. These trends can influence your investment strategy.
• Local Regulations: Understanding local real estate regulations, property taxes, and zoning laws is vital for investors to navigate the market effectively.
• Property Management: Whether you plan to manage properties yourself or hire a management company, efficient property management is key to successful real estate investments.
• Diversification: Consider diversifying your real estate portfolio in Miami by exploring different property types, from single-family homes to commercial properties.

Highest Appreciating Miami Neighborhoods

When considering real estate investments, it's crucial to evaluate the historical performance of neighborhoods. The following Miami neighborhoods have demonstrated significant appreciation since 2000, making them noteworthy areas for potential investors:

Downtown North

• **Appreciation**: Downtown North has experienced substantial appreciation in real estate values over the past two decades. This makes it an attractive prospect for investors seeking long-term growth.
• **Location**: Situated in the heart of Miami's downtown area, Downtown North offers proximity to key amenities, cultural attractions, and business centers.
• **Potential**: With its central location and upward trend in property values, Downtown North presents opportunities for investors interested in urban real estate.

Little Haiti South

• **Appreciation**: Little Haiti South has seen remarkable appreciation since 2000. This neighborhood's transformation has been driven by its cultural vibrancy and proximity to downtown Miami.
• **Cultural Hub**: Little Haiti South has become a cultural hub, attracting artists, creatives, and entrepreneurs. This cultural renaissance has boosted its real estate market.
• **Investment Appeal**: Investors seeking neighborhoods with both historical significance and growth potential should consider Little Haiti South.

Overtown North

• **Appreciation**: Overtown North's appreciation over the years highlights its potential for real estate investment. This historic neighborhood has witnessed resurgence.
• **Revitalization**: Overtown North has been a focus of revitalization efforts, leading to improved property values and a growing sense of community.
• **Investor Opportunities**: For those interested in contributing to the revitalization of a historic neighborhood while realizing financial gains, Overtown North is a compelling choice.

Overtown West

• **Appreciation**: Overtown West has undergone a transformation, with appreciating real estate values. This neighborhood showcases the potential for investors in areas undergoing positive change.
• **Community Development**: Overtown West's development initiatives have contributed to its growth. Investors can participate in community development projects while benefiting from rising property values.
• **Future Prospects**: Overtown West is a neighborhood to watch for those interested in urban redevelopment and investment in emerging areas.

Downtown Southeast

• **Appreciation**: Downtown Southeast's real estate market has shown consistent appreciation over the years. Its location and urban development make it an appealing choice for investors.
• **Urban Development**: Downtown Southeast has witnessed significant urban development, including new residential and commercial projects. This development has boosted property values.
• **Investment Potential**: With its ongoing urban transformation, Downtown Southeast presents promising investment opportunities for those looking to capitalize on urban growth.

Downtown Northwest

• **Appreciation**: Downtown Northwest has experienced notable appreciation in real estate values since 2000. Its proximity to downtown Miami and growth in infrastructure contribute to its appeal.
• **Proximity to Downtown**: The neighborhood's location near downtown Miami is a key factor driving appreciation. Residents enjoy easy access to the city's business and entertainment districts.
• **Investor Advantages**: Downtown Northwest offers advantages for investors seeking a strategic location and potential for long-term appreciation.

Downtown

• **Appreciation**: The central Downtown area of Miami has consistently appreciated in real estate values. Its status as the city's core business and cultural district contributes to this growth.
• **Economic Hub**: Downtown Miami is an economic hub, home to numerous businesses, cultural institutions, and entertainment venues. This dynamic environment supports property value growth.
• **Investment Opportunities**: Investors looking for real estate in the heart of the city should consider Downtown Miami, given its appreciation potential and urban vibrancy.

Downtown East

• **Appreciation**: Downtown East has seen substantial appreciation, benefiting from its location within Miami's thriving downtown district.
• **Urban Growth**: Downtown East has experienced growth in both residential and commercial developments. This urban expansion has contributed to property value appreciation.
• **Investment Appeal**: Investors interested in neighborhoods within the urban core of Miami should explore Downtown East's potential for investment and growth.

Town Square

• **Appreciation**: Town Square's appreciation since 2000 makes it a noteworthy area for real estate investors seeking long-term gains.
• **Location**: The neighborhood's location offers accessibility to key amenities and is situated in a dynamic urban environment that supports property value growth.
• **Investment Prospects**: Town Square provides investment prospects in a vibrant urban setting, making it a compelling choice for real estate investors.

Park West

• **Appreciation**: Park West has demonstrated significant appreciation over the years, positioning it as an attractive area for investors.
• **Urban Development**: Park West has witnessed urban development, including entertainment venues and commercial establishments. This development has enhanced property values.
• **Investor Opportunities**: Park West offers investment opportunities in a growing urban district with the potential for long-term appreciation.

Article is courtesy of:July 19, 2024 By Marco Santarelli , Norada Real Estate Investments