A collaborative report from MAR and the local MLS reveal the state of Miami’s market in June.

In June, Miami’s housing market, particularly in regards to single-family homes, continued showing signs of strength and stability, as agents reported record sales activity throughout the city and county, according to the Miami Association of Realtors and the local Multiple Listing Service system.

For what has been a fairly positive year for the South Florida metro, residential real estate sales in Miami are staying the recovery course, with overall sales increasing two percent year-over-year. Single-family home sales played an especially important role in securing gains, as sales increased 9.5 percent from June 2014 to June 2013. Condominium sales, while not as impressive as single-family homes, still improved by 3.8 percent, according to MAR.

The Big Picture

The collaborative report goes on to detail a number of improvements to Miami’s market, which include:

• Average sale price for single-family homes decreased 16.9 percent year-over-year, but as we discussed in a recent article, this is potential good news considering the local market is currently over valued.
• The median number of days single-family homes stayed on the market dropped an impressive 10.8 percent year-over-year to just 41 days per, while average percent of properties selling at original list price stayed strong at 95.3 percent.
• All-cash sales, which rule the Miami marketplace, were down 2.5 percent year-over-year, but still remained well above the 32 percent national average.

Strong Sales and Less Cash

From 2011 to 2013, Miami homebuyers and sellers were plagued with inventory and demand shortages, but what has become a strong performance in 2014 is helping the city establish to itself as a national leader in the market.

“We continue to see strong sales activity in Miami compared to the three previous record sales years,” Liza Mendez, 2014 MAR chairman, says. “Activity is mostly declining for transactions in the lowest price points and for short sales. Increased inventory is generating more moderate price growth.”

Though cash sales are on the decline, which may open up the market for more low-level buyers to compete, foreign investors continue to pay overwhelmingly in cash. According to MAR, 90 percent of international buyers in Florida purchase properties using all cash.