Residential property sales are continuing to increase in Miami as demand and limited supply drive double digit price growth, the latest data from real estate agents show. In March prices for single family homes in particular surged, up 25.1% year on year and 16% month on month to a median price of $225,000, according to the figures from the Miami Association of Realtors.
This is the highest percentage increase for the median sales price of single family homes since the height of the previous real estate boom in 2005. There has now been 16 consecutive months of appreciation for both single family homes and condominiums. The median sales price of condominiums, which has significantly increased in each of the last 21 months, rose 19.3% to $167,000 compared to a year earlier and 1.2% compared to the previous month.
‘The Miami real estate market is experiencing comprehensive strengthening fuelled by robust demand and limited supply,’ said Natascha Tello, chairman of the board of the Miami Association of Realtors. ‘The local market has seen consistent double digit appreciation for a significant number of months while inventory declines in every price point, reflecting the demand that exists for all types of Miami properties. Current market indicators coupled with buyer trends and Miami’s worldwide appeal point to solid strengthening into the future,’ she added.
In Florida as a whole, median sales prices in March increased 15.2% to $160,000 for single family homes and 15.9% to $120,000 for condominiums. The national median existing home price for all housing types was $184,300 in March, an 11.8% increase from March 2012, according to the National Association of Realtors (NAR).
In Miami-Dade County residential sales increased 2.7% in March compared to record sales levels a year earlier. The sales of existing single family homes in Miami-Dade increased 6.1% and sales of existing condominiums increased 0.5%. Statewide sales of existing single family homes increased by 9% compared to a year ago, according to the latest data from Florida Realtors Industry Data and Analysis department. Statewide condominium sales were up 1.1% from March 2012.
Quote from PropertyCommunity.com : “The Miami real estate market, which is increasingly popular with overseas buyers, continued to strengthen in February, as prices again increased despite limited inventory.”
Nationally, sales of existing single family homes, town homes, condominiums, and co-ops declined 0.6% from February but remain 10.3% higher than they were in March 2012, according to NAR. Active listings at the end of March dropped 5% compared to March 2012, when the market was already experiencing a housing shortage. Inventory of single family homes dropped 9.7% while that of condominiums decreased 1.9%. At the current sales pace, there are 5.1 months of supply of single family homes and 5.9 months of supply of condominiums.
‘After several years of market strengthening, the Miami market momentum continues. As a result it is now a great time to sell in Miami. Many local home owners have recovered lost equity and can easily sell their homes, whether single family or condominium, if priced right. Properties are selling very rapidly, yielding close to asking price and generating multiple offers,’ said Fernando Martinez, residential president of the Miami Association of Realtors.
A continued high level of cash buyers showing interest from abroad is still strong. In Miami-Dade County some 64% of total closed sales in March were all cash sales. Cash sales accounted for 44.8% of single family, a 1.3% increase over the previous year, and 77% of condominium closings, a 2.6% decrease compared to the previous year. Since nearly 90% of foreign buyers in Florida purchase properties all cash, this reflects the much stronger presence of international buyers in the Miami real estate market. By comparison all cash sales nationally accounted for 30% of transactions in March.