An analysis of Miami-Dade market metrics by price range reflects market performance for properties under $100,000 down significantly from that of higher priced real estate.
The report from the Miami Association of Realtors shows in particular, closed sales and new listings for properties priced below $100,000 experienced sharp declines. However, existing inventory only decreased for condominiums listed for less than $50,000 and single family homes listed for less than $100,000.
‘Strong growth in listings is a sign that Miami home owners are realising it is a good time to sell,’ said Liza Mendez, 2014 chairman of the board of the MAR.
According to the report, new listings of single family homes experienced an increase of 11.4% to 1,754 listings in November 2013 from 1,575 during the same period in 2012. Meanwhile, condominium listings also saw overall growth in November at 1.9% to 2,416 listings compared to 2,372 in 2012.
‘The increase in new listings is a reflection that many home owners are aware of rising values and the robust performance of the Miami real estate market over the last three years. Due to consistent price appreciation, many homeowners have recovered equity lost during the boom and are now able or more willing to sell and profit,’ added Mendez.
Single family homes ranging from $600,000 to $999,999 accounted for 8% of all new listings, an increase of 58.2% relative to 2012 figures. New single family home ranging from $400,000 to $599,000 accounted for 11%, up 53.3% compared to the year before.
Single family homes listed in November at $250,000 to $299,999 saw a growth of 42% compared to the same period in 2012. However, new single family home listings priced below $100,000 declined 24.3% compared to the previous year.
Condominium listings were also strong in November. Of the 2,416 condominiums listed during the month, 12% were listed at $300,000 to $399,999 and saw growth of 45.8%. Those listed at over $1 million increased by 34.5% relative to last year’s figures.
In addition, more modestly priced condominium listings also saw strong growth. Those priced $100,000 to $149,999 saw a rise of 15.2% compared with the same time a year ago and those priced $150,000 to $199,999 increased by 12.4% but new condominium listings priced below $100,000 declined 35%.
The MAR report also shows that there was a slight decline of 2.4% in the overall sales of single family homes last November, but there were double digit sales increases across various price points. Generally, only sales for single-family homes below $150,000 experienced declines compared to the previous year, while sales for homes above $1 million experienced a negligible decrease of 1.6%.
Of the single family homes sold in November some 13% were in the $300,000 to $399,999 price bracket, growth of 39.4% compared to year ago figures. Sales of single family homes valued between $400,000 to $599,999 were up 22.7% and those sold at $200,000 to $249,999 saw growth of 14.5% compared to November 2012.
‘While sales of condos and homes in Miami are strong and fuelling appreciation, there is still inventory in all price ranges, including affordable properties for buyers looking for value,’ said Francisco Angule, MAR 2014 residential president.
Meanwhile, overall sales of condominiums saw a modest decline of 6.3% when compared to the prior year but remained strong in comparison to historical trends. The reason for the decline in sales can be attributed mostly to sharp decreases for properties listed below $100,000, which dropped 45% compared to the previous year, the report points out.
Sales for condominiums between $100,000 and $149,999 increased by 39%, while sales for all properties above $150,000 increased 14%. Some 20% of the 1,274 condominiums sold in November ranged from $100,000 to $149,990.
There were 115 condominiums sold at the $400,000 to $599,999, representing growth of 32.2% from the same period in 2012, those sold for $300,000 to $399,999 were up 15.2% and those sold at $200,000 to $249,999 saw 14.5% growth from the previous year.
The report also shows that despite strong demand available inventory is increasing in most price ranges for both single family homes and condominiums. The only declines in inventory in November where for single family homes listed for less than $100,000 and for condominiums listed below $50,000.
It says that this reflects the success of the MAR campaign to encourage home owners to sell during the severe housing shortage experienced in 2012 and 2013 as more inventory creates a more balanced market between buyers and sellers.
