Miami property market continues its recovery with prices and sales up
Miami home prices and sales are continuing to be buoyant with strong gains in June, marking seven consecutive months of appreciation, the latest data shows.
The median sales price of condominiums in Miami Dade County, for example, increased a by 34% to $160,000 compared to a year earlier, the figures from the Miami Association of Realtors reveal. And the median sales price of single family homes rose 5% to $194,250.
‘The remarkable rise in Miami home prices over the last seven months reflects the strong demand that exists for local properties,’ said the association’s chairman Martha Pomares.
‘While worldwide foreign buyers and investors continue to play a major role in boosting the performance of the Miami real estate market, US baby boomers, residents migrating from other states, and vacation and second home buyers are all having a major impact,’ she explained.
In June the average sales price for condominiums in Miami Dade County increased 24.2% to $325,748. The average sales prices for single family homes rose 21% to $420,704.
Statewide median sales prices in June increased 8.2% to $151,000 for single family homes and 15.8% to $110,000 for condominiums, according to Florida Realtors Industry Data and Analysis department.
The national median existing home price for all housing types was $189,400 in June, a 7.9% increase from June 2011.
Total residential sales in Miami-Dade County increased 2% compared to a year earlier. The sales of existing condominiums increased 4% from 1,314 to 1,368, compared to record sales levels in June 2011. Sales of single family home increased 2% from 923 to 906 in the same period.
Statewide sales of existing single family homes totalled 18,800 in June 2012, up 5.3% compared to a year ago and condominium sales totalled 9,202, up 1.5% from those sold in June 2011.
Nationally, sales of existing single family homes, town homes, condominiums, and co-ops decreased 5.4% from May but were 4.5% higher than they were in June 2011, according to the National Association of Realtors (NAR).
‘The Miami real estate market is unlike any other in the US as evidenced by a recovery that was faster and stronger than any other and that far exceeded experts’ expectations,’ said Patricia Delinois, residential president of the Miami Association of Realtors.
‘But financing remains a hurdle for many qualified buyers. In a market like Miami, where there is clear growth and demand, loosening unnecessarily tight lending standards would result in further strengthening,’ she added.
Over the last year, the inventory of residential listings in Miami Dade County has dropped 29% and compared to the previous month, the total inventory of homes increased 2%. Currently, there are 4.2 months of supply in Miami Dade.
Total housing inventory nationally decreased 3.2% at the end of June and was 24.4% below year ago levels, which represents a 6.4 month supply at the current sales pace.
Strong demand for bank owned (REO) properties and improved processing of short sales continued to yield absorption of distressed listings and to contribute to price appreciation.
In June, 44% of all closed residential sales in Miami Dade County were distressed, including REOs and short sales, compared to 57% in June 2011 and 46% the previous month.
In Miami Dade County, 65% of total closed sales in June were all % cash sales, compared to 60% in June 2011 and 64% the previous month. Cash sales accounted for 46% of single family and 77% of condominium closings. Nearly 90% of international buyers in Florida purchase properties all cash.
Nationally, all cash sales edged up to 29% in June from 28% in May and were the same as in June 2011, reflecting the stronger presence of international buyers in the Miami real estate market.