Sale prices again increased for existing single family homes in August, while the median sale price for condominiums dipped slightly. The MAR said that prices remain at affordable 2004 levels despite 33 months of consistent increases for single family homes.
Condo prices had increased for 38 consecutive months and began increasing long before that of single family homes. Condo prices declined in August for the first time in more than three years.
The median sale price for single family homes increased 6.4%, up to $250,000 from $235,000 in August 2013. The average sale price for single family homes increased 24.7% from $364,960 in August 2013 to $455,108 last month.
Compared to August 2013, the median sale price for condominiums decreased by 4.2% to $182,000 from $190,000 a year prior. The average sale price for condominiums decreased -6.9% to $346,847 from $322,743 in August 2013.
‘The Miami real estate market continues to normalize as the new construction sector gains momentum and generates strong demand for additional new supply, impacting the existing condominium market,’ said Liza Mendez chairman of the MAR board.
‘Despite declines in sales and condo prices, the performance of the Miami residential market continues to be comparable to what it was in during periods of record sales activity,’ she added.
Single family home sales in Miami-Dade County decreased 4.4% relative to August 2013, from 1,210 to 1,157. Compared to August 2013, condominium sales declined 21.4% from 1,592 the previous year to 1,252 last month. Combined, residential real estate sales decreased 14% to 2,802 compared to 2,409 in August of last year.
The report points out that Miami real estate continues to sell at a rapid pace and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in August was just 47 days, an increase of 34.3% from August 2013. The average percent of original list price received was 95.4%, down a negligible 0.8% from a year earlier.
The median number of days on the market for condominiums sold in August was 53 days, an increase of 15.2% compared to the same period in 2013. The average sales price was 94.7% of the asking price, a decrease of 2.6%.
‘Although the Miami market continues to normalize creating more balance between buyers and sellers, some price points, particularly for single family homes, still reflect strong demand coupled with limited supply,’ said Francisco Angulo, MAR residential president.
‘In certain market areas and price points, homes for sale are still generating multiple offers, sales above asking price, and competition between prospective buyers,’ he added.
The data also shows that cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.
In Miami-Dade County, 54.4% of total closed sales in June were all-cash transactions, compared to 57.3% in August 2013. Cash sales in Miami are still significantly higher by 31% compared to the national percentage of 23%. All-cash sales accounted for 41% of single family home and 66.8% of condominium closings, compared to a year earlier when cash sales were 43.8% and 67.6% respectively.
Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.
While traditional sales continue to increase, distressed property transactions in August again declined in Miami-Dade due to fewer short sales. In August, only 33.1% of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 36.9% in August 2013.
Short sales and REOs accounted for 9.5% and 4.8% respectively, of total Miami sales in August. Sales of REOs increased 5.7% while that of short sales declined by 48%.
After three years of record sales activity that resulted in an inventory shortage, seller confidence is resulting in more properties being listed for sale in Miami. Active listings at the end of August increased 25.3% but remain 60% below 2008, when sales bottomed. Inventory of single family homes increased 20.4% from August 2013 while condominium inventory increased 28.3%.
At the current sales pace, there is still a 5.7 month supply of single family homes, an increase of 15.3% from 4.9 months in August 2013, and an eight month supply of condominiums, up from six months in August 2013, an increase of 33.6%. A balanced market between buyers and sellers offers between six and nine months’ supply of inventory.
New listings of single family homes increased 6.5% year on year and new condominium listings increased 2.7%.
Strong sales in the coastal new construction condominium Miami market reflect significant demand for new properties, according to the latest New Construction Market Status Report from Cranespotters and MIAMI.
Declines in existing sales can be attributed to new construction supply becoming available over the last year. Currently, there are 180 new construction towers that have been announced in Miami-Dade County of which 60 have not been approved, 59 are planned but have not begun development, 54 are under construction, and seven were completed in 2014.
‘South Florida's preconstruction condo market continues to grow with developers adding 24 new condo towers with more than 3,200 units to the market east of Interstate 95 in Miami-Dade, Broward and Palm Beach counties in the last month,’ said Peter Zalewski, founder of Cranespotters.
‘A key factor driving developers to propose new condo towers is the steady pace of preconstruction sales in South Florida. In the last month, buyers have purchased an estimated 439 preconstruction condo units in South Florida based on the latest CraneSpotters Developers Price Survey. To date, buyers have purchased more than 10,825 units in new condo towers in South Florida since 2011,’ he added.
