Prices Surge for Miami Homes, Condos

The Miami Association of Realtors is recording a record number of home sales, thanks in large part to increasing interest from foreign investors, cash buyers of distressed properties …

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The Miami Association of Realtors is recording a record number of home sales, thanks in large part to increasing interest from foreign investors, cash buyers of distressed properties and vacation-home seekers. The average sales price for single-family homes in the Miami-Dade County area increased 21.8% while average condo prices rose 23% for the year ending in March, according to Florida Realtors Industry Data. That’s a significant jump, particularly when compared to statewide price averages in both categories. Sales dropped all across the state, however, despite better price performance and a continuing demand for the purchase of distressed homes. For more on this continue reading the following article from PropertyWire.

For the fourth consecutive month, Miami home prices posted strong gains in March with the median sales price of condominiums surging 46% compared to a year earlier, according to the latest figures from the Miami Association of Realtors.

The median condo price reached $141,700 in March while the median sales price of single family homes rose 13% to $180,000.

‘The fact that Miami home prices have significantly increased for four consecutive months indicates prices have bottomed and have caught up with sales levels,’ said Martha Pomares, 2012 chairman of the board of the Miami Association of Realtors.

‘We expect this trend to continue, as Miami increasingly attracts international buyers and investors, second and vacation home buyers, and migrating US residents,’ she added.

Statewide median sales prices in March increased 20.8% to $105,000 for condominiums and 10.3% to $139,000 for single family homes, according to the Florida Realtors Industry Data and Analysis department. The national median existing-home price for all housing types was $163,800 in March, a 2.5% increase from March 2011.

In March, the average sales price for single family homes in Miami-Dade County increased 21.8% from $279,608 in 2011 to $340,634 in 2012. The average sales prices for condominiums jumped 23% from $212,616 to $261,523.

Sales of existing homes decreased but remain at historically high levels. The sales of existing single family homes in Miami-Dade decreased 12% in March, from 1,039 to 919, compared to record sales levels March 2011.  Sales of condominiums were down 10.1% from 1,542 to 1,387, compared to March 2011.

Statewide sales of existing single family homes totalled 18,370 in March 2012, down 5.7% compared to a year ago.  Statewide condominium sales totalled 10,012, down 12% from those sold in March 2011.
 
Nationally, sales of existing single family homes, town homes, condominiums, and co-ops decreased 2.6% from February but were 5.2% higher than they were in March 2011, according to the National Association of Realtors (NAR).

 

‘The Miami residential real estate market saw record demand that resulted in an all-time record for home sales. This consistent demand coupled with fewer distressed properties being transacted has logically resulted in notable price appreciation unlike anywhere else in the US,’ said Miami Association of Realtors residential president Patricia Delinois.

From March 2011, the inventory of residential listings in Miami-Dade County has decreased 34% from 18,883 to 12,379 in March 2012. Compared to the previous month, the total inventory of homes dropped 5.1%. Total housing inventory nationally declined 1.3% at the end of March but is 21.8% below a year ago.

Strong demand for bank owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In March, 49% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 52% in March 2011 and 54% the previous month. Contrary to a year ago, there are now more short sales being transacted than REOs.

In Miami-Dade County, 65% of total closed sales in March were all cash sales, compared to 66% a year earlier.  Cash sales accounted for 47% of single family sales and 79% of condominium closings. Nearly 90% of international buyers in Florida purchase properties all cash.
 
Nationally, all cash sales were 32% of transactions in March, reflecting the stronger presence of international buyers in the Miami real estate market.

This article was republished with permission from PropertyWire.

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