The property revival in Miami has been leading the national housing recovery in 2011 and 2012.
By Natalie Terchek
The latest figures from the Miami Association of Realtors reveal that home prices have risen again in August, making Miami the leader of the property revival in the United States. It is the ninth consecutive month of gains, particularly due to buyers from overseas.
According to Property Wire, the median sales price of Miami-Dade condominiums increased 28.4 percent to $146,500 from last year, with prices having now increased for each of the last 14 months. The median sales price of single family homes rose 10.8 percent to 195,000.
Miami Property Revival – High Sales and Price Increases
Despite the shortage of housing inventory, Miami home sales remain strong and continue to drive significant price appreciation, according to Miami Association of Realtors chairman Martha Pomares. She also mentions there is evident demand for Miami properties, specifically from foreign buyers and investors who recognize their desirability and profitability.
“Miami is the top market for foreign buyers in the nation, and local international activity continues to grow,” Pomares told PropertyWire.
In August, the average sales price for condominiums in Miami-Dade County increased 20.9 percent to $283,497. The average sales prices for single family homes increased 28.4 percent to $408,810. According to data from the Florida Realtors Industry, statewide median sales prices in August increased 5.8 percent to $147,000 for single family homes and 13.2 percent to $102,980 for condominiums.
Total residential sales in Miami-Dade County increased 7 percent compared to record sales levels in August 2011. The sales of existing condominiums in Miami-Dade increased 8 percent from 1,382 to 1,492.
Sales of single family homes increased 5 percent from 1,009 to 1,059, year on year. Statewide sales of existing single-family homes totaled 18,669 in August 2012, up 10.8 percent compared to a year ago. Statewide condominium sales totaled 8,767, up 5.7 percent from those sold in August 2011.
Patricia Delinois – Miami Seeing “Mini-Boom”
“Miami is experiencing a mini-boom fueled mostly by demand from international buyers, but also by population growth resulting from migration from other states, baby boomers and local consumers,” said Patricia Delinois, Residential President of the Miami Association of Realtors. “Miami’s firm position as a major global city is expected to continue to draw demand long into the future, as businesses, residents, visitors, tourists, investors and vacation and second homebuyers take advantage of all that our vibrant and unique city has to offer.”
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 26 percent from 15,405 to 11,431. Compared to the previous month, the total inventory of homes decreased 0.2 percent. The figures also show that currently there are 4.2 months of supply in Miami-Dade.
Strong demand for bank owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciaiton.
In August, 45.8 percent of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 56 percent in August 2011 and 47 percent the previous month. In Miami-Dade County, 64 percent of total closed sales in August were all cash sales, compared to 62 percent in August 2011 and 64 percent the previous month. Cash sales accounted for 45 percent of single family and 78 percent of condominium closings.
Nearly 90 percent of foreign buyers in Florida purchase properties all cash, reflecting the stronger presence of international buyers in the Miami real estate market.