The performance of the Miami real estate market remained strong in February, as prices continue to rise while properties are selling rapidly and near asking price, according to the latest report from the Miami Association of Realtors.
Miami is one of the most popular parts of the United States for foreign property buyers and attracts inquiries particularly from Europeans and South Americans seeking to buy property for investment in Florida.
The data shows that median sale prices again increased significantly for both single family homes and condominiums in February. The median sales price for single family homes jumped 17% to $227,000, marking 27 straight months of growth. The average sale price for single family homes increased 6.7% to $415,312 last month.
‘Despite the recent increase in inventory, sales activity remains at historically strong levels, resulting in rising prices,’ said Liza Mendez, chairman of the board of the Miami Association of Realtors.
'While additional inventory is creating a more balanced market, the fact that homes continue to sell fast and almost at asking price is still indicative of a seller’s market,’ she added.
The median sales price for condominiums has increased for 32 consecutive months, up 7.3% to $177,000 compared to February 2013. The average sale price for condominiums increased 10.8% to $337,382 from a year ago.
The report points out that Miami real estate continues to sell at a rapid pace and nearly at asking price, indicating properties are being priced right and buyers realize they need to be competitive in the current market.
The median number of days on the market for single family homes sold in February was just 47 days, a decrease of 2.1% from February 2013. The average percent of original list price received was 95.2%, up 1.4% from February 2013.
The median number of days on the market for condominiums sold in February was 57 days, an increase of 18.8% compared to the same period in 2013. The average sales price was 95% of the asking price, a negligible decrease of 0.8%.
In February, residential real estate sales in Miami-Dade County decreased a negligible 1.9% compared to 2,075 in February of last year. Single family home sales increased 1.3% relative to February 2013. Compared to February 2013, condominium sales declined 4.1%.
‘The Miami real estate market also offers great opportunities for buyers. Prices are still low, comparable to what they were more than 10 years ago,’ said Francisco Angulo, residential president of the association.
‘And, interest rates are still at historical lows, making buying a home more affordable. Consumers considering buying a home should take advantage of all of the current favorable market conditions,’ Angulo added.
The data also shows that active listings at the end of February increased 26.8% compared with a year ago. Inventory of single family homes increased 18.3% and condominium inventory increased 32.2%.
At the current sales pace, there is a 5.6 month supply of single family homes, an increase of 6% from 5.3 months in February 2013, and a 7.5 month supply of condominiums, up from 5.9 months in February 2013, an increase of 26.2%.
New listings of single family homes increased 10.6% in February while condominium listings increased 11.3%.
Sales of distressed properties continue to sharply decline in Miami-Dade County. In February, only 36% of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 42.2% in February 2013. Sales of REOs increased 26% while sales of short sales sharply declined by 51%.
The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 20.9% to $163,150 and 13.6% to $110,750 respectively.
The data also shows that 62.5% of total closed sales in February were all cash transactions, compared to 66.5% in February 2013. Cash sales in Miami are still significantly higher than the national average of 35%.
All cash sales accounted for 49.5% of single family homes and 72% of condominium closings, compared to a year ago when cash sales were 49.6% of single family home sales and 78.1% of condominium sales.
Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.
This article was republished with permission from Property Wire.