Property prices and sales continue upward in Miami as state leads US real estate recovery
Miami, which is considered as leading the property revival in the US, saw home prices rise again in August, the latest figures from the Miami Association of Realtors show.
It is the ninth consecutive month of appreciation with buyers from overseas in particular fuelling the growth of the real estate market. The median sales price of Miami-Dade condominiums increased 28.4% to $146,500 compared to a year earlier, with prices having now increased for each of the last 14 months. The median sales price of single family homes rose 10.8% to $195,000. Despite the shortage of housing inventory, Miami home sales remain strong and continue to drive significant price appreciation, according to Miami Association of Realtors chairman Martha Pomares. ‘There is evident demand for Miami properties, particularly from foreign buyers and investors who recognize Miami’s desirability and profitability. Miami remains the top market for foreign buyers in the nation, and local international activity continues to grow,’ she said. In August the average sales price for condominiums in Miami-Dade County increased 20.9% to $283,497. The average sales prices for single family homes increased 28.4 percent to $408,810. Statewide median sales prices in August increased 5.8% to $147,000 for single family homes and 13.2% to $102,980 for condominiums, according to data from the Florida Realtors Industry. Total residential sales in Miami-Dade County increased 7% compared to a year earlier, compared to record sales levels in August 2011. The sales of existing condominiums in Miami-Dade increased 8% from 1,382 to 1,492. Sales of single family homes increased 5% from 1,009 to 1,059, year on year. Statewide sales of existing single-family homes totalled 18,669 in August 2012, up 10.8% compared to a year ago. Statewide condominium sales totalled 8,767, up 5.7% from those sold in August 2011. ‘Miami is experiencing a mini-boom fuelled mostly by demand from international buyers but also by population growth resulting from migration from other states, baby boomers, and local consumers,’ Patricia Delinois, residential president of the Miami Association of Realtors. ‘Miami’s firm position as a major global city is expected to continue to draw demand long into the future, as businesses, residents, visitors and tourists, investors, and vacation and second homebuyers take advantage of all that our vibrant and unique city has to offer,’ she added. Over the last year, the inventory of residential listings in Miami-Dade County has dropped 26% from 15,405 to 11,431. Compared to the previous month, the total inventory of homes decreased 0.2%. The figures also show that currently there are 4.2 months of supply in Miami-Dade. 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 August, 45.8% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 56% in August 2011 and 47% the previous month. In Miami-Dade County, 64% of total closed sales in August were all cash sales, compared to 62% in August 2011 and 64% the previous month. Cash sales accounted for 45% of single family and 78% of condominium closings. Nearly 90% of foreign buyers in Florida purchase properties all cash, reflecting the stronger presence of international buyers in the Miami real estate market.