Miami continues to grow despite seasonal slump thanks to international and northeastern demand.

Miami was 2014’s hotbed market, breaking records with high sales and surging prices, despite inventory shortages. A new report from the Miami Association of Realtors and local MLS found that those trends seem to be carrying over into the new year, but not without having shed a healthy dose of their fervor.

In January, sales from all property types felt the pang of father winter, falling 6 percent from the same time last year. However, the losses were largely attributed to drops in condominium sales.

Single-family homes, maintaining 2014’s record-breaking pace, jumped an additional 6.5 percent from last January, while condo sales took a sizeable leap back, tumbling 15 percent. Sale prices for both property types continued climbing, with single-family homes gaining 5.6 percent year-over-year to $237,500, and condo prices settling at $188,500.

MIAMI researchers made note that prices remained near affordable 2004 levels, but strong upward momentum could prove damaging if it persists into spring and summer months.

A Catalog of Improvements

The joint report covered a wide array of Miami market updates, including marked improvements to local inventory.

• The median number of days on the market for single-family homes sold in January 2015 was just 51 days, an increase of 10.9 percent compared to the same period in 2014.The median number of days on the market for condominiums sold in January 2015 was 66 days, an increase of 17.9 percent compared to the same period in 2014.
• In January 2015, only 34.9 percent of all closed residential sales in Miami were distressed, including REO (bank-owned properties) and short sales, compared to 38 percent in January 2014.
• At the current sales pace, there is a 5.8-month supply of single-family homes, an increase of 3.6 percent from 5.6 months in January 2014. There is an 8.7-month supply of condominium inventory, up from 7.2 months in January 2014, an increase of 21.6 percent.

International and Northeast Demand Driving Growth

Miami has proven itself an unusually active market in the last two years, recording an impressive stream of sales and growth, despite a backlog of foreclosures and a battalion of seriously delinquent mortgages approaching foreclosure. One of the primary reason, MIAMI Residential President Christopher Zoller noted, has been the resolution of international buyers.

“Miami continues to be the place to be for the international market,” he said.

But powerful sales sheets are not only the result of foreign demand. Strong numbers are, in part, the product of a surge of interest emanating from the northeast.

“Miami’s exciting world-class lifestyle, less expensive real estate, warm weather and strengthening job market are bringing buyers from the northeast and elsewhere here,” Zoller added.

Of course, even as the city is seeing waves of new buyers crash and careen against the local market, overall sales are still trending downwards – and it’s not a bad thing.

“Miami is seeing a consistent and steady increase in single-family home sales while condo buyers are trending to the new coastal units becoming available,” Zoller said. “More houses are coming on the market, which means sellers are feeling confident about the housing market and strong sales show that buyers are also feeling confident.”