Strong demand and limited supply continue to strengthen the residential property market in Miami which is one of the most popular locations in the United States for overseas buyers. Affordable prices coupled with the sunshine lifestyle and local amenities are adding to the attraction for buyers from around the country and abroad, according to Natascha Tello, chairman of the board of the Miami Association of Realtors.
‘The Miami real estate market is experiencing significant strengthening as we continue to see greater demand than supply. While this trend continues to fuel double digit price appreciation, countywide prices remain at 2003 levels, which makes our properties affordable compared to many markets in the US and even to other world class cities on a global level,’ she said. ‘Miami prices coupled with the local lifestyle and amenities are attracting both US and international buyers and investors,’ added Tello.
The Miami-Dade County residential real estate market again experienced significant strengthening in the first quarter of 2013 with prices and sales continuing to rise. The median sales price for condominiums in Miami-Dade County was $162,000, an increase of 24.6% year on year and a 4.5% rise month on month. The median sales price for single family homes rose 17.5% to $205,650 in the first quarter compared to the first quarter of 2012. Year on year, the average sales prices for single family homes and condominiums increased 14.8% to $364,991 and 20.2% to $307,934, respectively.
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When the price is right properties are selling rapidly. ‘The Miami real estate market is increasingly becoming more attractive for sellers. Strong demand is resulting in multiple offers even above the asking price, and we are seeing greater increases for sales in the higher price points, while inventory in the lower price points has greatly declined. This reflects the fact that limited supply is hampering sales for more affordable properties,’ said Fernando Martinez, residential president of the Miami Association of Realtors.
The latest data also shows that total housing inventory in Miami-Dade County decreased another 5% year on year – first quarter active listings totalled 13,067. At the current sales pace, this reflects 5.1 months of inventory for single family homes and 5.9 for condominiums. Following two consecutive record breaking years, sales in Miami continue to increase despite an inventory shortage. They increased overall by 4.6% in the first three months of 2013 compared to a year earlier. In the first quarter, Miami sales of existing single family homes increased 10% compared to a year earlier. The sales of existing condominiums increased 2% compared to the first quarter of 2012.
In the first quarter, 65% of all closed sales were all cash compared to 66% a year ago. All cash sales were 47.9% of single family home closings and 76.9% of all condominium sales. Since nearly 90% of foreign buyers pay cash, this reflects Miami’s position as a top market for foreign buyers, according to the Association.