Median sales prices for Miami single-family homes and condominiums each registered double-digit growth while total residential sales increased in May, according to a new report by the MIAMI Association of Realtors (MIAMI).
Single-family home transactions — which set an all-time Miami annual record in 2014 — increased 5 percent year-over-year in May 2015, from 1,215 to 1,276. Existing condominium sales — which posted the second best year in Miami history last year despite an increase in sales of pre-construction condos — decreased 2.6 percent, from 1,489 to 1,450. Combined, Miami-Dade County residential real estate sales increased 0.8 percent to 2,726 last month compared to 2,704 a year ago.
Single-family home prices, which again increased in May, remain at affordable 2004 levels despite more than three years of consistent year-over-year increases. Condo prices also increased in May 2015, marking 47 months of growth in the last 48 months. The median sale price for single-family homes rose 12.8 percent, up to $282,000 in May 2015 from $250,000 in May 2014. The median sale price for condominiums increased 11.1 percent year-over-year to $186,500.
Both of these increases are similar to the nationwide increases for existing home sales and prices, as reported by the National Association of Realtors for May.
Miami Real Estate Remains Relatively Affordable
Miami’s residential properties are significantly more affordable than other similar global cities, according to the National Association of Realtors 2015 Profile of Home Buying Activity of International Clients. NAR analyzed the cost of a 120-square meter condo in a number of foreign cities based on prices reported in the Global Property Guide, and compared the prices against the median price of a condo in several major U.S. cities. A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900, according to NAR. The price for the same condo in London ($960,840), Hong Kong ($776,280) and New York ($1.6 million) were at least five times higher.
“Existing single-family home sales increased and condominiums performed well,” said Christopher Zoller, the residential president of MIAMI. “Even with the double-digit growth of median sales prices, Miami properties remain affordable compared to other global cities like New York and London.”