Miami real estate market continues to be busy, latest data shows
Miami is continuing to be one of the busiest real estate markets in the United States with the latest data showing that median sales prices for all housing types rose in April.
The data from the Miami Association of Realtors also shows that single family homes have seen their most robust sales since December last year.
‘The continued stability in Miami’s job market and low interest rates are improving buyer confidence. Not only are we seeing more single family home sales in Miami, but we are seeing more homes and condos listed as seller confidence grows,’ said Christopher Zoller, the association’s residential president.
Single family home transactions, which set an all-time Miami annual record in 2014, increased 8% year on year in April while existing condominium sales, which posted the second best year in Miami history last year despite an increase in new condo construction, fell by 6.8%.
Single family home prices, which again increased in April, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in April 2015, marking 46 months of growth in the last 47 months.
The median sale price for single-family homes increased 7% to $260,000 in April 2015 from $243,000 in April 2014. The median sale price for condominiums increased 3.1% in April to $199,000 from $193,000 a year ago.
The data also shows that the average percent of original list price received for single family homes was 94.6%, down a negligible 0.1% from a year earlier. The median number of days on the market for single family homes sold in April 2015 was 43 days, equalling last year’s figure.
The average percent of original list price received for existing condominiums was 93.1%, a 0.5% decrease. The median number of days on the market for condominiums sold in April 2015 was 63 days, an increase of 14.5% compared to the same period in 2014.
Cash deals represented 51.9% of Miami’s total closed sales in April 2015, down from 59.3% in April 2014. Nationally, just 24% of housing transactions are made in cash. Since 82% of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash buyers continues to reflect South Florida’s ability to attract international buyers.
Condominiums comprise a large portion of Miami’s cash purchases as 65.8% of condo closings were made in cash in April compared to 35.7% of single family home sales.
Seller confidence continues to result in more properties being listed in Miami. Active listings at the end of April increased 6.1% year on year and active listings remain about 60% below 2008 levels when sales bottomed.
Inventory of single family homes decreased 2.5% while condominium inventory increased 10.9%. At the current sales pace, there is a 5.1 month supply of single family homes, a year on year decrease of 7.8% and there is a 9.1 month supply of condominium inventory, an increase of 17.7% from 7.7 months in April 2014. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of Miami single family homes decreased 3.6% from 2,150 in April of last year to 2,072 last month. New condominium listings declined 1% to 3,051 last month, compared to 3,082 during the same time period in 2014.