Miami home prices have increased each of the last 12 months as a result of strong demand and very tight supply, according to the latest report from the Miami Association of Realtors. Despite very limited inventory, Miami-Dade County residential sales surged 23% in November compared to a year earlier, the data shows. The sales of existing condominiums increased 19.8% whiles sales of single family homes increased 26.2%.
‘It appears the Miami real estate market will set another record in 2012, exceeding sales levels at the height of the boom in 2005 and during the all time record in 2011,’ said Martha Pomares, chairman of the board of the Miami Association of Realtors, ‘Considering the shortage of housing inventory available, it is remarkable that sales remain this strong. This record demand coupled with extremely limited supply is driving strong and consistent price appreciation,’ she added.
The trend is mirrored in the state of Florida where sales of existing single family homes have increased by 24.4% compared to a year ago although state wide condominium sales fell by 18.3%.
In Miami home prices also rose again in November, marking 12 consecutive months of appreciation for both single family homes and condominiums. The median sales price of Miami-Dade condominiums, which has increased each of the last 17 months, rose 31.7% to $158,000 compared to a year earlier while the median sales price of single family homes rose 15.9% to $195,000.
Quote from PropertyCommunity.com : “Demand for properties in Miami is intensifying with the latest figures showing that pending sales increased by 18% in October compared to the previous month.”
In November the average sales price for condominiums in Miami-Dade County increased 22.9% to $285,512 and the average sales price for single family homes increased 17.4% to $377,918. State wide median sales prices in November increased 11.2% to $150,00 for single family homes and 23.2% to $112,000 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing.
‘The Miami market’s robust performance offers opportunities for both buyers and sellers. While prices are rising, Miami remains more affordable than most U.S. markets and other world-class, global cities. Sellers are recovering significant equity lost during the downturn, resulting in greater profits,’ said Patricia Delinois, residential president of the Miami Association of Realtors.
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 19% and currently, there are 4.1 months of supply of single family homes and 4.6 months of supply of condominiums in Miami-Dade. Properties are selling much more rapidly in the current market than they did a year ago and the current median days on the market is only 43 for single family homes and 51 for condominiums, compared with historic averages of 90 to 120 days. These are 12.2% and 1.9% decreases year on year respectively and are much lower than the national median time on the market which was 70 days.
The data also shows that there is strong demand for bank owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation. In November, 43.4% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 56% in November 2011 and 47.4% the previous month.
Cash sales show the attraction of the market to foreign buyers with Miami-Dade County seeing cash sales account for 45% of single family and 75.3% of condominium sales which compares with 39% nationally.