The latest figures from the Miami Association of Realtors show that limited supply is helping the residential market to experience double digit price growth.
The median sales price for single family homes in Miami-Dade County rose 13.7% to $199,000 in the fourth quarter of 2012 compared to the third quarter of 2011, and 5.3% compared to the third quarter of 2012.
The median sales price for condominiums was $155,000, an increase of 27% year on year and 6.9% compared to the previous quarter.
Both US and international buyers continue to boost strong sales in the Miami real estate market, according to Natascha Tello, chairman of the board of the Miami Association of Realtors.
‘Sales growth is significant and is exceeding record levels. We are experiencing continued growth as evidenced by high occupancy rates in Downtown Miami and by the strength of the local rental market. Properties are not just selling; they are satisfying evident housing demand,’ she said.
Year on year, the average sales prices for single family homes and condominiums increased 25.95 to $391,446 and 25% to $302,975, respectively.
Nationally, the median sales price of existing single family homes was $178,900 in the fourth quarter, up 10% from the fourth quarter of 2011, according to the National Association of Realtors. The national median sales price for condominiums was $179,900, a 12.25 increase over the previous year.
Miami-Dade residential sales, including existing single family homes and condominiums, increased a significant 20% in the fourth quarter, from 6,132 to 7,365, compared to a year earlier.
Following a record-breaking year in 2011, sales in Miami continue to increase despite an inventory shortage. In the fourth quarter, Miami sales of existing single family homes increased 14.6% compared to a year earlier. The sales of existing condominiums increased 1% compared to the third quarter of 2011.
‘While there are typically more sales of townhouses and condominiums in Miami, we’ve seen a surge in single family home sales in the fourth quarter,’ said Fernando Martinez, 2013 residential president of the Miami Association of Realtors.
‘This increase in sales is driving greater price appreciation and depleting inventory even further for this market segment, particularly in the lower price points. While Miami remains very affordable compared to other world class cities and even to many other US markets, there are now fewer choices in the lower price ranges,’ he explained.
Total housing inventory in Miami-Dade County decreased 20.4% year on year. Fourth quarter active listings in Miami-Dade County totalled 12,822. At the current sales pace, this reflects 5.7 months of inventory for single family homes and 5.2 for condominiums.
