In August 2024, the Miami real estate market continues to be a hotspot for both buyers and sellers, with single-family homes showing steady growth and resilience in a market that is ever-evolving. Whether you’re a first-time homebuyer, a seasoned investor, or a homeowner looking to sell, understanding the latest trends is crucial to making informed decisions.
In this comprehensive market update, we’ll dive deep into the August 2024 data, analyze the performance of single-family homes in Miami, and provide insights into what’s driving these trends. From median prices to sales volumes, inventory levels to days on market, here’s everything you need to know about Miami’s single-family home market this month.
Overview: A Balanced Yet Seller-Friendly Market
Miami’s single-family home market has been relatively balanced but is still leaning toward a seller’s market. With a months of inventory figure of 3.87 (down by 2.8% from last month), inventory is tight enough to give sellers the advantage but not overwhelmingly so. This balanced dynamic means that while buyers have options, competition remains strong, keeping the market robust for sellers.
In practical terms, a months of inventory number of around 4 months suggests that if no new homes were listed, it would take approximately 3.87 months to sell all the current listings. A balanced market is typically considered to be around six months of inventory, meaning Miami is still very much a seller-friendly environment despite the cooling seen in some other markets across the U.S.
Price Performance: Median Sold and List Prices Rise Steadily
For August 2024, the median sold price for single-family homes in Miami stood at $660,000, representing a 1.5% increase month-over-month. This small but steady rise indicates that demand remains high, and Miami continues to be a desirable location for those seeking single-family homes. Over the past 12 months, home values in the area have surged by nearly 10%, underscoring the long-term growth in the market.
On the flip side, the median list price for active listings in August was $850,000, holding steady from last month. The list price for new listings was slightly lower at $749,900, showing a 3.9% month-over-month increase. This suggests that while sellers are pricing their homes competitively, there is room for negotiation, especially as buyers become more discerning in this balanced market.
Key takeaway for buyers: Prices are continuing to rise, albeit at a slower rate than in previous years, so locking in a deal now could be advantageous, especially with interest rates potentially fluctuating in the coming months.
Key takeaway for sellers: The increasing median list and sold prices, along with strong demand, mean you can expect competitive offers and relatively short timeframes for selling.
Sales Volumes: Transactions Surge
The number of single-family homes sold in August 2024 has seen a substantial increase compared to the previous month. Sales are up by 16.6%, indicating strong buyer activity despite higher prices and limited inventory. A total of 401 single-family homes changed hands, contributing to the overall robustness of the Miami market.
This surge in sales volume is indicative of Miami’s unique position as a desirable destination for both local buyers and those from out of state. With people continuing to relocate to South Florida due to lifestyle changes, tax advantages, and its vibrant cultural scene, Miami remains a top choice for real estate investments.
Key takeaway for buyers: Even with higher prices, properties are still selling quickly, so if you find a home that fits your criteria, it’s best to act fast.
Key takeaway for sellers: The market’s healthy sales volume indicates high buyer demand. This is the perfect time to list your property if you’ve been considering selling.
List-to-Sold Price Ratios: A Slight Cooling Off
While sales volumes and prices are on the rise, the list-to-sold price ratio has seen a slight decline. In August, homes were selling for an average of 96.7% of their list price, down 0.2% from the previous month. This slight cooling suggests that buyers are being more cautious, likely due to the high prices and rising mortgage rates.
While sellers are still getting close to their asking prices, the small decrease in this ratio shows that negotiation is back on the table. Buyers are likely to be more strategic in their offers, and sellers may need to adjust their expectations slightly.
Key takeaway for buyers: You may have more room for negotiation than in previous months, so consider making offers below the asking price, especially for homes that have been on the market for longer.
Key takeaway for sellers: While homes are still selling near the asking price, be prepared for some negotiation. Pricing your home competitively from the start could help avoid extended time on the market.
Days on Market: Homes Selling Quickly
One of the most telling signs of market health is how quickly homes are selling. In August 2024, the median days on market (DOM) for single-family homes in Miami was just 23 days, an increase of 8% compared to the previous month. While this is a slight uptick, homes are still moving fast, showing that buyer interest remains strong.
In addition to the DOM, the median days to pending status is worth noting. This figure jumped to 46 days, representing a 76.9% increase month-over-month. This means that while homes are still selling quickly once they are under contract, the time it takes to reach that point has increased significantly. This could indicate that buyers are taking longer to secure financing or finalize offers, which could be related to recent fluctuations in interest rates.
Key takeaway for buyers: Be prepared to move quickly once you find a home you like. The market remains competitive, and desirable properties are not staying on the market for long.
Key takeaway for sellers: Homes are still selling quickly, but don’t be surprised if the process takes a little longer to go under contract. Having all your paperwork ready and being flexible with buyers could help speed things along.
Inventory Levels: Slight Decline But Still Favorable for Sellers
Miami’s single-family home market had a total of 1,895 active listings in August 2024, up by 2.8% month-over-month. Despite this increase, the market remains tight, with inventory levels sitting at 3.87 months. This is a slight decline of 2.8% compared to the previous month, indicating that while new listings are coming on the market, demand is keeping inventory relatively low.
This shortage of supply, combined with strong demand, continues to push prices upward and creates an environment where sellers have the upper hand.
Key takeaway for buyers: With inventory levels remaining low, competition for homes is fierce. You may need to adjust your expectations and act quickly when you find a home that meets your needs.
Key takeaway for sellers: The limited inventory means less competition for your property, which can translate into higher offers and faster sales.
Square Footage Trends: Bigger Homes, Bigger Prices
The median square footage for single-family homes in Miami was 1,920 square feet in August 2024, with a median price per square foot of $468. This price per square foot is up 0.4% month-over-month, continuing a trend of rising costs for larger homes.
Interestingly, homes under contract had a smaller median square footage of 1,688 square feet, with a median price per square foot of $410. This suggests that buyers are willing to pay a premium for larger homes but are also looking for more affordable options in smaller properties.
Key takeaway for buyers: Larger homes are commanding higher prices, but there are still deals to be had in slightly smaller properties. Consider what size is truly necessary for your lifestyle and budget.
Key takeaway for sellers: If you’re selling a larger home, now is the time to capitalize on the market’s willingness to pay a premium for more square footage. Ensure your home is presented in its best light to maximize its value.
Total Market Volume: Strong Growth Continues
The total market volume for single-family homes in Miami reached $2.85 billion in August 2024, a 5% increase from the previous month. This continued growth highlights the strength of the market, even as prices rise and inventory remains tight.
Buyers are still willing to invest in Miami real estate, and sellers are benefiting from high demand and competitive offers. This is a clear sign that the Miami real estate market remains a strong investment opportunity, particularly for those looking to buy or sell single-family homes.
Key takeaway for buyers: Miami’s market shows no signs of slowing down, so getting into the market sooner rather than later could pay off in the long run.
Key takeaway for sellers: The high total market volume means there are plenty of active buyers out there. Listing your home now could result in a faster sale and a strong final offer.
Conclusion: What Does This Mean for You?
In conclusion, August 2024 has proven to be another strong month for Miami’s single-family home market. With steady price increases, strong sales volume, and competitive conditions, both buyers and sellers have much to gain from participating in this market.
If you’re a buyer, it’s essential to act quickly and be prepared to navigate a competitive environment. Sellers, on the other hand, can continue to expect strong demand and competitive offers, making it an excellent time to list your property.
As always, real estate is a hyper-local industry, and while these are the general trends for Miami, every neighborhood and community may experience different dynamics. If you’re looking for specific data on your area or have questions about the market, feel free to reach out. I’m here to help
