During the fourth quarter of 2014 the real estate market in Miami performed strongly as buyers showed an increase in confidence and demand from international and domestic buyers alike.
The average sale price of a single family home rose to £246, 140 during the fourth quarter which is an increase of 4.7% when compared to the same time last year. The average price of a condominium increased by 8.6% to $190,000 in the fourth quarter when compared to the same period last year. There has now been 12 consecutive quarters of growth for single family homes and condominiums in Miami-Dade County.
It is expected that house prices in Miami will continue to rise through 2015 but at a slower rate. it is now a seller’s market thanks to the lower supply of property and a large demand for single family homes. However, there has also been an increase in demand for new developments and condominiums that currently exist, so growth in residential properties will still be experienced.
During the fourth quarter of 2013, the average sale price for a condominium rose by 18.5% t0 $375, 269 and the median price for a single family home dropped by 2% to $394, 095. An all time record for sales of single family homes was set in 2014 as prices increased by 7.7% to 3,426 but condominiums experienced a decrease of 3.3% to 3,981 when compared to the same time in 2013.
The increase in sales activity of single family home is down to the fact that consumers now have an increased confidence and many who were sitting tight are now opting to purchase. There has been an increase in job growth and the economy is doing well-enough to the point that consumers are now opting to return to the housing market.
There was also an increase in home and condominium listings during the fourth quarter of 2014, an increase of 3% when compared to the same period in 2013. The listings of new condominiums saw an increase of 4.2%.
The current rate of sale, the amount of active listings represents 5.6 months of inventory for single family homes and 8.4 for condominiums. The months’ supply of inventory for condominiums increased by 19.7% when compared to the fourth quarter of 2013 and the inventory for single family homes dropped by 0.2%. A market that has the right balance of buyers and sellers offers around 609 months of supply inventory.
Single family homes stayed on the market for an average of 45 days during the fourth quarter five more than the same period during the previous year which is an increase of 12.5%. The average amount of time a condominium spent on the market was 58 days which is an increase of 23.4%.
55% of all completed sales during the fourth quarter of 2014 were cash, this figure sat at 60% a year ago. As almost 90% of foreign buyers pay for their purchases with cash, this shows how Miami is now a prime market for foreign buyers.