The Miami market is one of the most active in the United States and benefits from domestic demand as well as numerous overseas buyers who often pay cash for second or investment homes.
Single family home sales, which set an all-time annual record in 2014, increased 6.5% relative to January 2014 while condominium sales, which posted the second best year in Miami history last year despite increased supply of new condo construction, decreased 15%.
Overall, the data from the Miami Association of Realtors shows that combined, residential real estate sales decreased 6% last month compared to the same time period in 2014.
‘Miami is seeing a consistent and steady increase in single-family home sales while condo buyers are trending to the new coastal units becoming available,’ said Christopher Zoller, the 2015 residential president of the Miami Association of Realtors.
‘More houses are coming on the market, which means sellers are feeling confident about the housing market and strong sales show that buyers are also feeling confident,’ he added.
Single family home prices, which again increased in January year on year, remain at affordable 2004 levels despite more than three years of consistent year on year increases. Condo prices also increased in January 2015, marking 43 months of growth in the last 44 months.
The median sale price for single family homes increased 5.6%, up to $237,500 in January 2015 from $225,000 in January 2014. The average sale price for single family homes decreased 4% to $392,172 last month from $408,626 during the same time period last year.
Compared to January 2014, the median sale price for condominiums increased 1.3% to $188,500 from $186,000 a year prior. The average sale for condominiums increased 3.2% to $372,978 from $361,282 in January 2014.
Miami single family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand. The median number of days on the market for single family homes sold in January 2015 was just 51 days, an increase of 10.9% compared to the same period in 2014. The average percent of original list price received was 94.3%, down a negligible 1.2% from a year earlier.
The median number of days on the market for condominiums sold in January 2015 was 66 days, an increase of 17.9% compared to the same period in 2014. The average percent of original list price received was 93%, a 3.2% decrease.
The report points out that cash sales in Miami continue to decline as more financing becomes available. Access to mortgage loans for condominium buyers, however, remains limited. The lack of Federal Housing Administration loans for a large number of existing Miami condominium buildings is preventing further market strengthening.
In Miami-Dade County, 57.3% of total closed sales in January 2015 were all-cash transactions, compared to 61.9% in the same time period last year. All-cash sales accounted for 42.5% of single family homes and 70.5% of condominium sales, compared to a year earlier when cash sales were 47.3% and 72.3% respectively.
‘Miami continues to be the place to be for the international market. And it’s not just international buyers. Northerners are coming here in new numbers because they’re being pushed out of the northeast by the weather,’ said Zoller.
‘Miami’s exciting world class lifestyle, less expensive real estate, warm weather and strengthening job market are bringing buyers from the Northeast and elsewhere here,’ he pointed out.
While traditional sales remain strong, distressed property transactions declined in Miami-Dade in January 2015 due to fewer short sales. In January 2015, only 34.9% of all closed residential sales in Miami were distressed, including REO (bank-owned properties) and short sales, compared to 38% in January 2014.
Short sales and REOs accounted for 7.8% and 27.1%, respectively, of total Miami sales in January 2015. Sales of REOs increased 3.6% year on year while that of short sales declined 45%.
After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed in Miami. Active listings at the end of January increased 12% from the same time period last year.
But active listings remain about 60% below 2008 levels when sales bottomed. Inventory of single family homes increased 8.4% from last year while condominium inventory increased 14.1% during the same period.
At the current sales pace, there is a 5.8 month supply of single family homes, an increase of 3.6% from 5.6 months in January 2014. There is an 8.7 month supply of condominium inventory, up from 7.2 months in January 2014, an increase of 21.6%. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of single family homes increased 3% compared to January of last year while new condominium listings decreased 4.3%.
