Miami August 2007 Home Sales

September 28, 2007

Miami area home sales sank to the lowest level in at least a decade in August, driven down by sluggish sales in many lower-cost neighborhoods and new-home developments. The regional median price remained a bit higher than last year. However, the median fell 8.3 percent in Palm Beach County and there were other signs of prices slipping below year-ago levels across the metro area, a real estate information service reported.

A total of 9,017 new and resale houses and condos sold in the region encompassing Miami-Dade, Palm Beach and Broward counties. That was up 2.6 percent from 8,972 in July but down 27.3 percent from 12,402 in August 2006, according to DataQuick Information Systems of La Jolla, Calif. The firm tracks real estate trends nationally via public property records.

Total escrow closings for all homes combined were the lowest for an August since at least August 1997, when DataQuick's Miami region stats begin. Last month marked the 23rd consecutive month in which metro area sales have fallen on a year-over-year basis. New home sales saw the biggest annual drop: 31.4 percent. In the resale market, sales fell the hardest in zip codes dominated by entry-level houses. For example, total sales in all zip codes with a median sale price under $250,000 dropped 36.3 percent from a year ago, while sales in zips with a $500,000-plus median increased 7.5 percent. The analysis was based on zip codes where at least 25 single-family (detached) houses resold in August.

The metro area's median sale price for new and resale homes combined was $285,000 in August, unchanged from July and up 3.6 percent from $275,000 in August 2006. The region's median peaked at $289,000 in June. The August median for resale detached houses, $330,000, was flat compared with a year ago, while the $206,000 median for resale condos declined 4.2 percent. August's hefty 18.3 percent year-over-year increase in the median price for new homes, $295,700, is probably the result of fewer small homes, especially condos, selling this year compared with last. DataQuick's new-home category combines detached houses and condos.

The shift toward a higher percentage of sales occurring in mid-to-higher-price neighborhoods puts upward pressure on the median sale price, which is the point where half of the homes sold for more and half for less.

Another price gauge analysts use, the median price paid per square foot for resale houses, suggests greater weakness in Miami region home values than does the straight median price. The median price paid per square foot fell to $190 in August, down 6.8 percent from a year ago and down 9.8 percent from the peak level of $211 reached in May and June of 2006. Augustï¿½s level was the lowest since the median price per square foot was $189 in June 2005.

County-by-county highlights: Comparing August 2007 to August 2006

Broward County:

+ The median sale price for all homes combined was $278,000, up 3 percent but 1 percent below the $280,000 peak in February. The median for resale condos fell to $175,000, down 4.9 percent.

+The median price paid per square foot for resale detached houses fell to $193, down 8 percent from last year and 9.6 percent lower than the $213 peak in May/June 2006.

+Total sales dropped 19 percent.

Miami-Dade County:

+The overall median sale price was $299,950, up 12.3 percent but lower than the June peak of $303,800. The annual gain was boosted by a 33.2 percent increase in the new-home median, which was a record $305,000. The median for resale detached homes, $350,000, rose 2.9 percent, while the $242,000 resale condo median gained 0.8 percent.

+The median price paid per square foot for resale detached houses fell to $200, down 1.7 percent from last year and 6.7 percent lower than the $214 peak in May/June 2006.

+Total sales fell 32.6 percent.

Palm Beach County:

+The overall median sale price fell to $275,000, down 8.3 percent. It was the 11th consecutive month in which the median has fallen on a year-over-year basis. The median for resale single-family homes dropped 5.4 percent, to $309,000, while the resale condo median declined 13 percent to $170,000.

+The median price per square foot for resale houses fell to $175, down 11 percent from a year ago and 15.8 percent below the $208 peak in March 2006 peak.

+Total sales fell 29.6, led by a 53.8 percent drop in new-home sales

Miami-Fort Lauderdale-Miami Beach MSA

	Number of Sales			Median price
	Aug-06	Aug-07	%Chg	Aug-06	Aug-07	%Chg
Resale houses	5,273	3,849	-27.0%	$330,000	$330,000	0.0%
Resale condos	3,314	2,551	-23.0%	$215,000	$206,000	-4.2%
New homes	3,815	2,617	-31.4%	$250,000	$295,700	18.3%
All homes	12,402	9,017	-27.3%	$275,000	$285,000	3.6%