Miami posts strong sales numbers in September – no sign of slowing down.

It was a surprising August for Miami, with condo prices dropping and sales activity slowing, but September proved a resurgence for the sunshine state’s hottest market, benefitting from both sales and price growth, according to a new report from the Miami Association of Realtors and the local MLS.

Last month, single-family home prices increased 11.1 percent, representing 34 months of consecutive year-over-year increases. However, despite the robust gains, prices still remain at affordable 2004 levels.

Condo prices, which, as mentioned, dipped in August, rebounded, increasing 7.3 percent to $195,000. Out of the past 40 months, September’s increases make 39 months of growth, with August being the sole dissenter.

Homes Selling for More, Faster

Furthermore, MAR’s report detailed the minutiae of the market, and how price gains and demand are fueling improvements. For instance:

• The median number of days on the market for single-family homes sold in September was only 46 days, a year-over-year increase of 12.2 percent.
• The number of properties selling at original list price remained steady at just over 95 percent.
• All-cash sales dropped from 60.5 percent in September 2013 to only 55.8 percent last month, opening the door for more traditionally financed buyers to enter the market.

Preconstruction Condo Developers Clean Up

What’s truly surprising about Miami’s September bounce back, is that prices and sales continued to grow despite a similarly healthy demand for new construction. It seems that the two are slowly working their way towards a much more symbiotic relationship.

Peter Zalewski, founder of Cranespotters.com, made special mention of the area east of Interstate 95, where preconstruction condo sales are doing quite well.

“Our researchers learned that buyers entered into contracts to purchases nearly 250 preconstruction condos – an average of more than eight units per day,” he said. “As a result, some 65 percent of the more than 16,900 preconstruction condo units actively being marketed for presale are now under contract of recently sold.”

MAR Chairman Liza Mendez mimics Zalewski’s optimism for condo construction and the demand driving it, adding that recent sales, coupled with an overall strong demand in Miami real estate, reflects an “all-around robust market performance fueled by both domestic and international buyers.”