Miami home sales increased again in December with single family home sales setting an all-time annual record in 2014 and median sales prices continuing to increase at a more moderate rate, the latest data shows.
Year-end sales of single family home sales in 2014 set an all-time record, increasing 4.8% and while condominium sales were the second highest in history, they decreased 4.3% compared to the previous year.
Combined sales for the year decreased a negligible 0.4%, the data from the Miami Association of Realtors shows.
‘The Miami real estate market again reflected great demand in 2014. More single family homes were sold in Miami-Dade County than ever in history, while condominium sales marked their second strongest year ever despite competition from new construction supply,’ said Christopher Zoller, MAR residential president.
Single family home prices, which again increased in December year on year, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in December, marking 42 months of growth in the last 43 months.
The median sale price for single family homes increased 3.6% to $255,000 from $246,180 in December 2013. The average sale price for single family homes decreased 1.7% from $414,560 in December 2013 to $393,340 last month.
Compared to December 2013, the median sale price for condominiums increased 9.6% to $195,000 from $175,000 a year prior. The average sale price for condominiums increased 19.9% to $409,707 from $341,687 in December 2013.
The report also shows that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in December was 45 days, an increase of 9.8% from December 2013. The average percent of original list price received was 94.7%, down 1.7% from a year earlier.
The median number of days on the market for condominiums sold in December was 57 days, an increase of 9.6% compared to the same period in 2013. The average sale price was 93.8% of the asking price, a decrease of 3.3%.
The median days on market for properties sold in 2014 were 45 days for single family homes, an increase of 9.8% and 57 days for condominiums, an increase of 23.9%. The average sales price was 95% of the asking price, a decrease of 0.6% for single family homes and 94.7%, a decrease of 1.7%, for condos.
Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.
In Miami-Dade County, 55.9% of total closed sales in December were all-cash transactions, compared to 57.2% in December 2013. Cash sales in Miami are still double the national figure of 26%. All-cash sales accounted for 41.8% of single family home and 68.5% of condominium closings, compared to a year earlier when cash sales were 41% of single family home sales and 70.3% of condominium sales.
In 2014, cash sales accounted for 57.2% of total existing sales compared to 61.6% in 2013. 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.
‘In addition to active domestic buyers, foreign buyers continue to bolster the Miami real estate market, as evidenced by the high percentage of cash sales locally compared to the rest of the nation. As Miami continues to build its image as a leading global city, foreign investment in our real estate is expected to continue to fuel market expansion,’ said Zoller
While traditional sales remain strong, distressed property transactions in December again declined in Miami-Dade due to fewer short sales. In December, only 31.5% of all closed residential sales in Miami-Dade County were distressed, including bank-owned properties and short sales, compared to 37.2% in December 2013.
Short sales and REOs accounted for 7.1% and 24.3%, respectively, of total Miami sales in December. Sales of REOs increased 17.2% while that of short sales declined by 53.2%. In 2014, distressed sales accounted for 33.7% of total closed sales compared to 37.9% in 2013.
The report says that after three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But total inventory and new listings are now increasing by narrower margins. Supply and demand for single family homes continues to favor sellers, while that of condominiums reflects a balanced market between buyers and sellers.
This article was republished with permission from Property Wire.