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MAR Report Shows a Healthy Miami Market

by James McClister

Miami home prices continue rising even as inventories fill out.

Demand in Miami is high, historically high, and despite efforts to satisfy hopeful, salivating homebuyers with additional inventory, demand is remaining strong, mimicking 2013’s record-setting sales activity, according to the newest report from the Miami Association of Realtors and the local MLS.

Most notably, the median sales price for Miami homes was up 8.7 year-over-year to $250,000 – more than $30,000 above the national average – while condo prices jumped a slight 3.5 percent to $189,900, well below the $211,000 U.S. median price.

Up Across the Board

MAR’s report went on to detail several positive notes in the Miami market, specifically:

  • Active listings were up in the third quarter by more than 22 percent.
  • Considering the current sales pace, single-family home inventory stands at 5.7-months supply, and condo inventory an 8.1-months supply – a 13.5 percent and 33.6 percent increase, respectively.
  • Average sales prices, as expected, have also jumped significantly, with single-family home prices rising 14.9 percent to $438,431, and condo prices moving up 3.8 percent to $341,927.

Approaching a Balance

It’s a tired cliché, but Miami truly is firing on all cylinders. In months past, the South Florida city struggled to strike a balance between inventory and demand, with hungry buyers and investors snatching up properties as quickly as they came on the market. But recently, that trend has shifted.

“The Miami real estate market continues to attract the attention of both domestic and foreign buyers, fueling solid growth and creating opportunities for both buyers and sellers,” Liza Mendez, 2014 chairman of MAR, said. “While there is more supply available than a year ago, there is still strong demand, and the growth of supply, new listings, sales and prices is more moderate, resulting in a more balanced market.”

However, despite improvements, some areas of the city continue to struggle.

“Market performance continues to vary greatly depending on location, property type, price range and other factors,” 2014 MAR President Francisco Angulo confirmed, adding that some areas are “still experiencing significant competition and bidding wars.”

It’s the hope of many that the overall market will eventually strike a symbiotic balance that uplifts Miami in its entirety, but considering the disparity between some areas, reconciling the gap in the near future seems unlikely.

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