In Miami Condo Glut, Preconstruction Resale Market Freezes up

Over 7 years of supply.
The Miami housing market has split in two diverging segments: single-family homes and condos. For now, the single-family market is hot.
Sales of existing single-family homes in Miami-Dade County jumped 8.7% from a year ago to 1,232 units, the highest for any August ever, according to the Miami Association of Realtors. In terms of dollars, total sales soared 16% to $569 million and the median price 14.5% to $300,000. This marks the 57th month in a row of year-over-year price gains.
But total existing residential sales fell 3.3% year-over-year to 2,389 units. Why? Condos!
Existing condo sales – not including the new construction market – plunged 13.6% year-over-year to 1,150 units. Yet the median price, at $215,000, is still up 5.7% from last year.
Cash transactions for all sales plunged by nearly 9 points, from 49.6% a year ago to 40.7% in August (national average = 22%); 25.7% of single-family home sales were cash, and 56.8% of condo sales. The report:

This post was published at Wolf Street by Wolf Richter ‘ September 25, 2016.