Many real estate analysts would argue that international demand for real estate in Miami helped turn the state’s housing market around and set a tone of confidence for the nation at large. What isn’t up for argument is the continued interest shown by foreign buyers, which is proven by the numbers. The Miami Association of Realtors (MAR) reports that pending listings has increased by 40% in the last month. In fact, MAR officials are saying that more inventory is needed to satisfy still-growing demand. Numbers were flat when not considering pending home sales, but realtors agree pending home sales are a good indicator of future market performance. For more on this continue reading the following article from Property Wire.
Strong demand from buyers in Miami mean that the total number of listings, including single family homes and condominiums, that pended last month increased by 40%.
Compared to September 2011 the number of single family and condominium listings that pended in September increased 58.5% and 27.5% respectively, the data from the Miami Association of Realtors shows.
‘The Miami market needs more inventory to satisfy strong demand for local properties. Since pending sales are an indicator of future closed sales, this activity points to continued demand. This is an excellent time for sellers who have been waiting to put their homes on the market to do so, as limited supply and significant demand continue to drive price appreciation,’ said Martha Pomares, chairman of the board of the Miami Association of Realtors.
Despite the dwindling supply, Miami’s real estate market continues to perform robustly, particularly when compared to the rest of the nation, explained Patricia Delinois, residential president of the association.
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‘Our market is by a wide margin the top choice for international buyers and investors, who along with population growth continue to fuel demand for local housing, boost the local economy, and greatly enhance our communities,’ she explained.
Nationally, the Pending Home Sales Index, a forward looking indicator based on contract signings, rose 0.3% to 99.5 in September from 99.2 in August, according to the National Association of Realtors. The index is 14.5% higher than the 86.9 index reported in September 2011.
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
Meanwhile, the most recent RE/MAX National Housing Report, which covers data from 52 metropolitan areas, shows August home prices were flat compared with July, but 6.3% higher than prices seen in August 2011.
Median home prices have risen above last year’s prices for seven consecutive months and home sales were 8.5% above the mark set last year, and for fourteen straight months have pushed higher than last year.
‘As we move from summer to fall it’s very encouraging that this year’s home selling season began strong and finished even stronger,’ said Margaret Kelly, chief executive officer of RE/MAX.‘Nearly every month in 2012 experienced increased sales and prices over 2011, showing that we’ve definitely passed the bottom and we’re looking forward to 2013 being an even better year,’ she added.
August home sales rose 2.5% higher than sales in July and 8.5% higher than sales at the same time last year. August marks the 14 consecutive month with sales higher than the same month in the previous year. Despite the apparent loss of sales to a tight inventory, historically low interest rates and renewed consumer interest have resulted in strong sales in August and through the entire summer.
Of the 52 metro areas surveyed 44 saw higher sales than a year ago and 29 of those metro areas saw double digit increases including Trenton, New Jersey up 35.6%, Raleigh Durham in North Carolina up 28.9%, Chicago up 28.1% and Nashville up 27.8%.
The median sales price of homes sold in August was $168,685, which was essentially flat from July, down only 0.2%. Prices peaked this summer in June, but remained higher than 2011 in both July and August.
The August median price was 6.3% higher than last year, which marks the seventh month in a row with a year on year increase. Of the 52 metro areas surveyed 46 reported price increases over last year, with 15 metro areas experiencing double digit gains including Phoenix with a 33.9% increase in median prices, San Francisco up 22.6%, Las Vegas up 19%, and Miami up 17.8%.
This article was republished with permission from Property Wire.