Miami-Dade Luxury Sales Surge Above Pre-Pandemic 2019 Transactions

Miami-Dade $1-million-and-up transactions surged triple digits versus pre-pandemic 2019 transactions as total pending home sales and showing appointments rose again for the second consecutive month, according to February 2023 statistics released today by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.

Miami real estate, which posted its second-most total home sales in history in 2022 despite an unprecedented doubling of mortgage rates, continues to see a surge in domestic and international wealth migration. Unlike other parts of the country, the Miami market continues to see price appreciation and sales are on par or above pre-pandemic 2019 transactions.

“Miami real estate continues to outpace national trends,” MIAMI Chairman of the Board Ines Hegedus-Garcia said. “Property prices in Miami continue to rise, albeit at a more modest rate. The region’s real estate market is unique due to the significant number of cash transactions and the high rate of migration. This normalization from the pandemic-fueled era of homebuying indicates that sellers are increasingly open to negotiating contract terms, offering greater flexibility.”

Pending Sales and Showing Appointments Rise for Second Consecutive Month

Total pending sales rose 16.9% month-over-month, from 2,288 in January 2023 to 2,674 in February 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.

Home sales are sensitive to mortgage rate changes and homebuyers are taking advantage of any rate declines. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage 6.60% as of March 16. That’s down from 6.73% from the previous week but up from 4.16% one year ago.

Miami February 2023 Condo Sales Rise vs. February 2019

Miami February 2023 total sales decreased 39.9% year-over-year, from 2,814 to 1,692, because it’s in comparison to a historic February 2022 and the current market has lower inventory in specific price points and higher rates. In comparison to February 2019, however, Miami February 2023 total sales are only down 2.7%.

Miami February 2023 condo sales increased vs. February 2019, but are down in comparison to last year. Miami existing condo sales decreased 46.6% year-over-year, from 1,807 in February 2022 to 965 in February 2023, due to lack of inventory and rising mortgage rates. In comparison to February 2019, however, February 2023 sales increased 3.3%, from 934 to 965.

Single-family home sales decreased 27.8% year-over-year, from 1,007 in February 2022 to 727 in February 2023 because of its comparison to a historic February 2022 and the current market has lower inventory in specific price points and higher rates. In comparison to February 2019, Miami February 2023 single-family sales are down 9.7%.

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