Miami residential property sales totaled more than $810 million in February, which complemented major price gains while resisting the continuing trend of falling sales, according to a joint report from the Miami Association of Realtors and local MLS.
On the single-family side of the market, the trickle of sales slowed only slightly, falling 0.3 percent year-over-year. However, that figure represents the total price spectrum. For homes in the $200,000 to $600,000 range – which accounted for 59.6 of total single-family sales in February – sales actually jumped an impressive 18.5 percent from the same time last year.
That jump in mid-tier-priced homes helped the market’s sale prices continue their climb, pushing the median price up 10.3 percent year-over-year from $245,000 to $270,221 – which MIAMI assured was still in line with 2004 prices and well below medians in other domestic and international real estate hubs.
According to the National Association of Realtors, Miami ranks No. 26 in the nation in terms of single-family median home price.
But there still remains a certain intrigue to Miami’s sale price figures, because apart from sales being down, the city’s inventory is up, which should help temper price increases.
In February, single-family home inventory stood at a 5.7 months supply after improving 3.6 percent from Feb. 2015. The increase has yet to slow the pace of price appreciation in Miami – which many expert outlets claim is necessary to establish a sustainable market – but that result may manifest itself in the months to come.
The Condo Conundrum
Miami’s condominium market is a conundrum similar but slightly different to its single-family market.
The most confounding aspect of the city’s condo market – as we’ve reported in the past – is its propensity to improve in median price against skyrocketing supply.
Condo inventory increased more than 20 percent year-over-year in February to a 10.6-month supply – well above the six- to nine-month supply MIAMI considers healthy. The association described the city’s condo market as a “buyer’s market” – which on paper it should be – but even as inventory climbs and sales fall by double digits (10.4 percent year-over-year), median price still remains steadfast in its appreciation.
In February, median price for a condo in the city jumped 9.5 percent from $189,000 a year ago to $206,950.
Sadek: “Median prices are still significantly below their 2007 peak”
In a statement accompany the joint report, association chairment and Coral Springs Realtor Mark Sadek assured that “Miami’s median prices are still significantly below their 2007 peak.”
He said that, comparatively, Miami homes and condos stand out as “bargains” on the international market.
“Miami real estate remains a bargain, especially compared to other world-class cities,” he said, acknowledging that the city’s affordability remains intact even after price increases.