Single-family homes buoyed the Miami housing market in the first quarter of 2017 as condo sales continue to slide. But there are still some bright spots in the local condo market, as three submarkets showed gains in their condo sales.
Condo sales in the first quarter decreased 5 percent year-over-year, from 3,326 in 2016 to 3,014 this year, according to the Miami Association of Realtors. Though single-family home sales were up this quarter, it was not enough to compensate for the decline in condo sales, as overall housing sales dropped 2 percent.
Despite the drop in sales, the median price for a Miami-area condo rose 6.6 percent year-over-year, with a median price of $220,000 compared to $206,450 from last year, according to the association.
The increase in price despite the decrease in sales shows that there is still demand for luxury condo units. That thesis is backed by another stat: cash sales. About 60 percent of the market’s condo sales were paid for in cash, twice the rate for single-family homes in the area and 20 points higher than the national average.
“The high percentage of cash buyers reflects Miami’s top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash,” the Miami Association of Realtors report says.
The report did not say that the cash buyers are responsible for the growth in the condo submarkets, but the few areas that did see condo sales rise this quarter are generally the playground of international buyers.
Of the markets with at least 40 transactions, here are the three areas where condo sales actually rose, according to the Miami Association of Realtors:
|2||North Miami Beach||56||24.40%|
|3||North Bay Village||41||2.50%|