Miami Real Estate Market 2024 – Miami has long been a real estate hotspot, but 2024 marks an exceptional year for the city’s housing market. In a city where luxury meets high demand, the latest trends reveal a fascinating combination of price surges, increasing sales, and investor interest. Miami’s single-family homes and high-end condominiums have been posting remarkable gains, fueled by a series of economic factors that make the city not just a lifestyle destination but a strong investment hub.
In this blog, we’ll delve into key factors driving Miami’s booming real estate market, the impacts of Federal Reserve policies, the ongoing luxury condo trend, and what it all means for investors looking to capitalize on Miami’s growth potential.
Miami Single-Family Home Sales: Consistent Growth in 2024
One of the most notable trends in 2024 is the continuous rise in Miami-Dade County single-family home sales. According to data from the MIAMI Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS), single-family home transactions have posted gains in eight of the last ten months. This represents an impressive rebound, especially given the high mortgage rates that the market has had to contend with in recent years.
In August 2024, single-family home sales rose 1.7% year-over-year, climbing from 948 to 964 transactions. This growth occurred despite a challenging environment of 7% interest rates for most of the deals during that period. According to Gus Fonte, Chairman of the Board at MIAMI Realtors, the market is primed for even greater activity now that the Federal Reserve has cut interest rates for the first time in four years. This rate cut is expected to lower mortgage costs, bringing more buyers into the market and making it an opportune time for those on the sidelines to make their move.
Luxury Condominiums ($1M and Up): Triple-Digit Surge
Another key highlight is the luxury condominium market, where transactions for properties priced at $1M or more have surged 122.2% compared to pre-pandemic levels in August 2019. This indicates that the demand for high-end living spaces in Miami is higher than ever, driven in part by Miami’s appeal to wealthy domestic and international buyers.
Luxury condo sales rose from 54 to 120 transactions in August 2024, showing that this segment of the market is thriving. The increase is especially striking when compared to the overall Miami condo market, which saw a 15.6% decline in total sales year-over-year. The decline in total condo sales, however, can largely be attributed to a lack of financing options and inventory at certain price points, particularly for properties that don’t qualify for Federal Housing Administration (FHA) loans. Of the 2,366 condo buildings in Miami-Dade, Broward, and Palm Beach counties, only 25 are approved for FHA loans, which is a bottleneck for buyers seeking such financing.
Steady Appreciation in Miami Real Estate Prices
Miami’s real estate market has been appreciating at an impressive pace for over a decade. The median sale price for single-family homes in Miami-Dade County rose 3.2% year-over-year in August 2024, increasing from $620,000 to $640,000. The market has now recorded 153 consecutive months of price increases, making it the longest-running streak of rising home prices on record.
In fact, the median price of a single-family home in Miami has increased by a staggering 156% in the last ten years, from $250,000 in 2014 to $640,000 in 2024. Meanwhile, condo prices have also seen significant appreciation, with the median price rising 128% over the same period, from $182,000 in 2014 to $415,000 in 2024.
This appreciation isn’t just a local phenomenon. Miami ranks No. 1 in the U.S. in home price appreciation, according to the Core Logic Home Price Insights for September 2024. Homes in Miami-Dade have experienced equity gains nearly double the national average. For example, a home purchased in the first quarter of 2009 and sold in the first quarter of 2024 gained $533,955 in value, compared to the U.S. average of $287,111.
Why Miami Real Estate Is Still a Value Compared to Other Global Cities
Despite these impressive price increases, Miami remains a value compared to other global cities. According to Knight Frank’s 2024 Wealth Report, $1M can buy you 60 square meters of prime real estate in Miami, much more than what you’d get in other international hotspots like New York (34 square meters), London (33), or Hong Kong (22). This fact alone is attracting a large number of foreign investors who see Miami as a high-yield investment opportunity.
Affordable Housing Initiatives: Florida’s Live Local Act
While Miami continues to see rising prices in the luxury market, the city is also working to address affordable housing needs through Florida’s Live Local Act. Passed in 2023 and amended in May 2024, this law encourages developers to allocate 40% of new units for affordable housing in exchange for the highest density allowances permitted by local regulations. The law defines affordable units as those priced at or below 120% of the area’s median income.
This initiative is expected to help alleviate some of the affordability issues that come with Miami’s rising real estate values, especially for middle-income families and individuals seeking to live in the city.
The Impact of Migration on Miami’s Household Income and Real Estate Market
Miami has seen an influx of high-net-worth individuals in recent years, significantly boosting the city’s economy and real estate market. According to Internal Revenue Service migration data, Southeast Florida’s aggregate household income grew by $10 billion in 2022 due to migration alone. Miami-Dade County’s new residents have an average adjusted gross income of $175,600—78% higher than those who left the county.
This migration has reinforced Miami’s status as a top luxury market. Knight Frank’s 2024 Wealth Report ranks Miami No. 1 in the U.S. for luxury residential price growth. The city also ranks as one of the leading Emerging Wealth Hubs and has seen a 75% increase in millionaire residents over the last decade.
Inventory Levels: Miami’s Supply Challenges in 2024
Despite the demand for Miami real estate, one of the ongoing challenges in 2024 is the lack of inventory. Total active listings for single-family homes in Miami-Dade County increased 36.6% year-over-year in August 2024, from 3,062 to 4,183, while condo inventory rose 57.6%, from 6,405 to 10,094. Even with these gains, inventory levels are still down compared to historical averages and pre-pandemic levels.
The inventory shortage is particularly acute in the condo market, where active listings are down 37.1% compared to pre-pandemic August 2019 levels. The constrained supply of properties, combined with Miami’s growing population and influx of wealthy buyers, is expected to continue driving prices upward in the near term.
Mortgage Rates: The Federal Reserve’s Impact and Future Predictions
In September 2024, mortgage rates hit a 19-month low, declining to 6% in anticipation of the Federal Reserve’s first rate cut in four years. This is expected to bring renewed buying interest in Miami’s market, which had been contending with rates as high as 7% earlier in the year.
Looking ahead, the outlook for mortgage rates is even more optimistic. According to MIAMI REALTORS® Chief Economist Gay Cororaton, rates could drop as low as 5% by the end of 2025. This would fuel a rebound in sales and likely lead to further price appreciation, particularly in the single-family home market.
Cash Sales: Miami’s Real Estate Market Attracts Global Buyers
One of the defining features of Miami’s real estate market is its high percentage of cash sales. In August 2024, cash sales accounted for 32.9% of all closed transactions, well above the national average of 26%. In the condo market, 43% of sales were made in cash, while 22% of single-family home transactions were also cash deals.
The high proportion of cash sales reflects Miami’s unique position as a magnet for foreign buyers, who often prefer to make cash purchases to avoid the complexities of financing. It also underscores the city’s role as a destination for investors moving from more expensive U.S. markets, where they can cash out on profits and buy more property in Miami.
Miami’s Distressed Sales Remain Low, Indicating a Healthy Market
Miami’s distressed sales remain at historically low levels, reflecting a healthy market. In August 2024, only 0.9% of all residential sales were distressed, including bank-owned properties (REOs) and short sales. This is a significant improvement from the 70% distressed sales rate seen during the height of the housing crisis in 2009.
Low levels of distressed sales indicate that homeowners in Miami are financially stable, which further contributes to the market’s overall strength and resilience.
Conclusion: Miami’s Real Estate Market Is Poised for Continued Growth
The Miami real estate market in 2024 is a unique mix of high demand, rising prices, and limited supply, making it an attractive destination for investors and homebuyers alike. Whether you’re interested in luxury condos or single-family homes, Miami offers strong potential for future appreciation, bolstered by its status as a global city, migration trends, and ongoing economic growth.
For investors, the combination of favorable mortgage rates, a growing population of high-net-worth individuals, and Miami’s relative affordability compared to other global cities make this the perfect time to explore opportunities in this dynamic market.
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