Record demand for properties in Miami, Florida, due to falling supply
The Miami real estate market continues to strengthen as a result of record demand, fuelled by both domestic and international buyers and investors.
According to the latest analysis from the Miami Association of Realtors increased supply remains insufficient to satisfy demand, especially for lower priced properties.
Second quarter active listings in Miami-Dade County totalled 13,151 and at the current sales pace, this reflects 4.9 months of inventory for single family homes and 5.8 for condominiums.
Months supply of inventory declined 15.9% for single family homes and increased 2.6% for condominiums compared to the second quarter of 2012.
‘The Miami real estate market continues to attract significant demand from both domestic and international buyers and investors,’ said Natascha Tello, chairman of the board of the Miami Association of Realtors.
‘Second quarter statistics reflect a strengthening market with limited supply, surging sales, and a majority of cash transactions, mostly as a result of the presence of foreign buyers in Miami from worldwide markets,’ she added.
In the second quarter, inventory of single family homes decreased 3.1% with the greatest percentage decreases occurring for properties listed under $200,000.
In Miami-Dade, condominium inventory increased 2.6% in the second quarter. For condos only inventory listed below $200,000 decreased, with properties listed below $50,000 declining a significant 63.5% and listings between $50,000 and $100,000 decreasing 37.6%.
In the second quarter, the median sales price for condominiums in Miami-Dade County was $180,000, an increase of 18.4% year on year and 11% compared to the previous quarter. The median sales price for single family homes rose 21% to $205,650 in the second quarter compared to the second quarter of 2012, and 9.4% compared to the first quarter of 2013.
Year on year, the average sales prices for single family homes and condominiums increased 14.2% to $446,289 and 14.9% to $352,246, respectively, the data also shows.
Following two consecutive record-breaking years, the Miami real estate market appears to be headed towards another record year. Miami-Dade residential sales, including existing single family homes and condominiums, increased by 13.6% in the second quarter, from 7,228 to 8,214, compared to a year earlier and 27.2% compared to the previous quarter.
In the second quarter, Miami sales of existing single family homes increased 19.5% compared to a year earlier. The sales of existing condominiums increased 8.9% compared to the second quarter of 2012.
‘We are experiencing robust sales activity throughout Miami-Dade County and in all price ranges except for properties listed under $100,000,’ said Fernando Martinez, residential president of the Miami Association of Realtors.
‘The low end of the market is seeing decreased sales due to a depletion of inventory. As our prices recover, we are also seeing fewer new listings in the lowest price points. In this seller’s market, properties that are priced right are selling very rapidly and generating multiple offers,’ he added.
In the second quarter, 62.6% of all closed sales were all cash compared to 65% a year ago. All cash sales were 44.7% of single family home closings and 75.8% of all condominium sales. Since nearly 90% of foreign buyers pay cash, this reflects Miami’s position as a top market for foreign buyers.