New sales record and double digit price growth in Miami real estate market in 2012
|Monday, 28 January 2013|
Homes sales in Miami set a new record in 2012 and prices saw double digit growth, boosted by overseas buyers, according to the latest data from the Miami Association of Realtors.
Year end sales of single-family homes in Miami-Dade County rose 7.9% compared to 2011 and condo sales were up 1.2%.
‘The Miami real estate market continues to exceed expectations and generate optimism. While we expected the surge in demand to drive price appreciation, we did not expect prices to increase as soon and as strong as they did,’ said Natascha Tello, chairman of the board of the Miami Association of Realtors.
But she added that the housing shortage experienced last year, the association is not expecting to set another sales record this year.
Overall sales increased 12.5% in December compared to a year earlier. The sales of existing single family homes in Miami-Dade increased 16.4% while sales of existing condos increased 9.8%.
In Florida as a whole sales of existing single family homes in creased 15.8% in December compared to a year ago. Condo sales in the state were up 8.6%.
In terms of prices there has now been 13 consecutive months of appreciation for both single family homes and condos. The median sales price of Miami-Dade condo, which has increased each of the last 18 months, rose 25.4% to $163,000 compared to a year earlier and 3.2% compared to the previous month.
The median sales price of single family homes rose 18.9% to $214,060 year on year and 10% compared to the previous month. While year end median sales prices increased 11% to $188,000 for single family homes and 34% to $147,000 for condos.
In December the average sales price for single family homes in Miami-Dade County increased 49.1% to $482,761. The average sales price for condominiums increased 36% to $358,856.
State wide median sales prices in December increased 14.1% to $154,000 for single family homes and 26.3% to $117,500 for condos, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing.
‘We expect the Miami market to continue to strengthen in 2013 as demand for local housing intensifies,’ said Fernando Martinez, residential president of the Miami Association of Realtors.
‘In addition to being a top market for foreign and vacation home buyers and investors, Miami continues to attract global attention on many fronts, including business, banking, fine arts, and entertainment. Such activities generate demand for housing, as evidenced by our strong rental market and lack of inventory available for sale,’ he added.
The data also shows that active listings at the end of December were 24% below what they were in December 2011. Inventory of single family homes dropped 28% while that of condos decreased 21%. Currently, there are 5.2 months of supply of single family homes and 5.7 months of supply of condominiums in Miami-Dade, representing drops of 33% and 22% respectively.
Strong demand for bank owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation.
In December, 41.1% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 54.4% in December 2011 and 47.4% the previous month.
There are indications that the number of international buyers are increasing. Some 65% of total closed sales in December were all cash sales, compared to 63% in December 2011 and 63% the previous month. Cash sales accounted for 49% of single family and 76% of condo closings.
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 29% of transactions in December, down from 30% the previous month and 31% in December 2011.
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