Both foreign and domestic real estate investment continues to keep the Miami property market at the forefront of the U.S. housing recovery. The Miami Association of Realtors reports that sales are 4.6% for the month of September, which puts the annual gain at more than 23% above last year. Single-family home sales and median prices are both up as strong demand forces pressure on supply. Analysts note that sales are brisk, which is a good sign for a continued recovery, although prices have yet to rise as high as the city’s last real estate boom. For more on this continue reading the following article from Property Wire.
Miami’s residential real estate market continued to boom in September as sales and listings grew by 4.6% and 23.3% respectively compared to a year ago, according to a new report from the Miami Association of Realtors.
Single family home sales were up 21.8% and condominium sales grew 4.6%. Median sales prices also increased for the twenty second month in a row.
Single family home median sales prices were up 18.4% year on year, marking 27 straight months of growth. Condominium prices also experienced strong appreciation, up 21.3% from last year.
‘The double digit growth in the sale of single family homes is a sign that now is a great time for home owners to sell,’ said Natascha Tello, chairman of the board of the Miami Association of Realtors.
‘The Miami real estate market continues to attract buyers from across the world due to the world class amenities Miami offers coupled with the significant growth of the local real estate market over the last three years,’ she added.
The strong growth is a result of high demand and limited supply, according to Fernando Martinez, residential president of the Miami Association of Realtors. But he pointed out that median sales prices continue to be significantly lower than they were at the height of last decade’s housing boom, which means buyers can still purchase great properties at affordable prices.
Active listings at the end of September increased 14% from 12,500 to 14,273, compared to September 2012. Inventory of single family homes increased 4.8% to 5,303 active listings, while that of condominiums increased 20.5% to 8,970 active listings.
At the current sales pace, there is 4.9 months of supply of single-family homes and 6.3 months of supply of condominiums in Miami-Dade, representing a decrease of 12.5% and an increase of 11% respectively compared to year ago levels.
The association said that one of the most encouraging signs from September’s data is the speed at which real estate is being sold in Miami, demonstrating a strong demand from buyers.
The median number of days on the market for single family homes sold in September 2013 was just over a month, 41 days, a decrease of 2.4% from the prior year. In addition, the average sales price was 95.9% of the listed price, up from 93.1% the prior year, indicating that homes are being priced right.
Condominiums also sold at a rapid pace and close to their asking price in September 2013. Condominiums sold in September had been on the market for just 46 days. Meanwhile, selling prices for condominiums were 96.7% of the listed price last month.
Compared to 2012, the number of traditional sales significantly outnumbered bank owned and short sales. In September 2012, traditional single family home sales accounted for a little over half of all sales with foreclosure and short sales dividing the rest. Meanwhile, last month, traditional single family home transactions were 60.3% of all single family homes sold in Miami.
In addition, in September 2013 there were 668 traditional real estate sales in the Miami real estate market, a significant growth of 38.9% from the 481 traditional sales during the same period in 2012. The growth of foreclosure and short sales compared to the prior year were in the single digits, 3.4% and 1.8% respectively.
In Miami-Dade County some 61% of total closed sales in September were all cash sales compared to 63% in September 2012. All cash sales accounted for 47.7% of single family home and 71% of condominium closings, compared to a year ago when cash sales were 42.6% and 76.5% of closed sales respectively.
Since nearly 90% of foreign buyers in Florida purchase properties all cash, this reflects the much stronger presence of international buyers in the Miami real estate market. By comparison all cash sales nationally accounted for 33% of transactions in September, up from 32% the previous month and 28% in September 2012.
This article was republished with permission from Property Wire.