Miami real estate costs less than other world-class cities

by Rachel Popa

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The MIAMI Association of Realtors (MIAMI) recently released its May 2016 Miami-Dade Statistical Report, which contained information about non-distressed single family home sales, condo prices and more.

Non-distressed single-family home sales in Miami increased for the fifth consecutive month, according to MIAMI and the local Multiple Listing Service (MLS). Existing-residential properties also posted price gains in May, according to the report.

The median sales price for existing single-family homes rose 4.6 percent year-over-year, an increase from $282,000 to $295,000, the report said. The prices of single-family homes have increased for 54 consecutive months.

“Miami real estate remains a bargain worldwide,” said Mark Sadek, a Coral Springs Realtor and the 2016 MIAMI chairman of the board in a written statement. “Miami-Dade County residential properties are at 2004 price levels. Domestic and international home buyers are taking advantage of Miami’s prices compared to other world-class global cities.”

Despite rising prices, Miami real estate costs less than average

According to the National Association of Realtors (NAR),  a 120-square-meter condo costs $149,900 on average in the Miami-Fort Lauderdale-Miami Beach area. A similarly sized condo would cost $1.6 million in New York City and $960,840 in London, MIAMI said.

In addition to Miami’s comparatively low prices, mortgage interest rates are at a historic low. The average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.6 percent in May, the lowest its been since May 2013, according to Freddie Mac.

Prices and sales for non-distressed or traditional single-family homes are increasing, MIAMI said. Non-distressed, single-family homes in Miami reported a sales growth of 1.5 percent, an increase from 928 to 942.

According to NAR, distressed sales made up 6 percent of all sales nationally in May, which is down 10 percent from a year ago.

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