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Miami leading real estate boom in Florida, latest data shows

The data from the Miami Association of Realtors shows that sales of existing single family homes in the Miami Metropolitan Statistical Area (MSA) increased 47% in July, and sales of existing condominiums increased 33%.

Throughout the state, where the real estate market has been one of the hardest hit by the economic downturn, sales increased 12% for single family homes and condominiums compared to July 2010.
Nationally, sales of existing single family homes, town homes, condominiums, and co-ops decreased 3.5% from June but were 21% above July 2010, according to the National Association of Realtors (NAR).

‘Miami is a hotspot for tourists, the entertainment industry, and global corporations, generating attention from around the world and boosting the local real estate market,’ said Jack Levine, 2011 Chairman of the Board of the Miami Association of Realtors.
‘While local housing inventory has declined dramatically over the last three years, the local market still offers opportunities for all types buyers and competitive pricing compared to many US and international markets,’ he added.

The percentage of cash transactions was unchanged from the previous month, 59% of closed sales were cash transactions. Cash sales accounted for 39% of single family and 74% of condominium closings, the data also shows.

The effect of short sales and foreclosures on the median and average sales prices for both single family homes and condominiums has lessened particularly in some areas of the county.  In June, 57% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 65% a year earlier.

The median sales price of single family homes in June decreased 8% to $182,400 from a year earlier.  The median sales price of condominiums increased 8% to $118,800.

‘We continue to experience strong sales activity despite declining distressed inventory. July marks the first time since the boom that the median sales price has increased for condominiums. This is a positive sign because it is indicative of demand for non-distressed properties, which will result in future market strengthening and rising home values,’ said Ralph De Martino, residential president of the Miami Association of Realtors.

Across the state median sales prices increased 4% to $87,800 for condominiums and dropped 1% to $136,500 for single family homes. The national median existing home price for all housing types was $174,000 in July, down 4.4% from July 2010.

The average sales prices for single family homes in Miami-Dade County increased 9.3% from $278,589 in July 2010 to $366,448 in July 2011. The average sales price for condominiums increased 17.9% from $210,870 in July 2010 to $248,682 last month.

The inventory of residential listings in Miami-Dade County has dropped 39% from 25,595 to 15,697 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped 3.4% from 16,252.  Since August 2008, existing housing inventory has decreased more than 64%, down from 43,100.