A sharp rise in single-family home sales in April was not enough to buoy the market, which saw a decrease in total existing sales that month due to declining condo sales, according to the Miami Association of Realtors.
Single-family home sales expanded 3.7 percent year-over-year in April, from 1,150 to 1,192. Luxury homes (homes above $1 million) had an even more dramatic increase, climbing 56.5 percent year-over-year with 97 such homes sold in April, according to the association. Total sales, however, decreased 4.8 percent.
Gains in single-family home sales are a good sign for the luxury market, which is struggling with a glut of condo inventory. But the best sign for the Miami-area housing market is that single-family mid-market homes, selling between $200,000 and $600,000, climbed by 13 percent, from 725 to 821 sales. Such sales comprise 69 percent of all single-family homes.
“April’s statistical report points to positive market expansion for Miami real estate,” Christopher Zoller, Miami Association of Realtors board chairman, said in a statement. “A lack of local buildable land puts high value and demand for existing Miami single-family homes. Existing condominiums, meanwhile, have seen fire-plus of price appreciation.”
Condo sales still lagging
Sales for existing condos declined 12.5 percent year-over-year, the association said. That’s partially due to there being a lot of available units, but it’s also because the available condo units are not affordable to average-income earners, according to the Miami Association of Realtors.
Of the 9,307 condo buildings in the Miami area, only 12 are approved for Federal Housing Administration loans, which is down from 29 last year, according to the association.
“A shortage of existing condo properties at popular price points impacted sales,” the association’s report reads.
Median prices rise
Prices for single-family homes jumped 3.7 percent in April, increasing from $285,000 to $325,000. That’s the 65 consecutive month of rising home prices, according to the group.
Existing condo prices increased 6.5 percent, from $215,000 to $229,000. Condo prices have risen in 69 of the last 71 months.
I heard from a broker that i should sell my home asap because condo sales, riising water tables will drag down the single family market for the next fee years. I also told him that ill sell my own home rather than use a broker just to make sure he wasnt trying one of the old broker tricks to get a listing. Is he right or full of crap? My home is in the $1m + market on a canal…
If you need to sell your home then now is a better time than next year for example. If you don’t need to sell your home then don’t even think about it. The market will ultimately go back up.