Residential property prices in Miami have increased for the sixth consecutive month in a row and are up substantially compared with a year ago, according to the latest figures from the Miami Association of Realtors.
‘Miami home prices have experienced double-digit appreciation consistently over the last six months. Strong demand for Miami properties continues to fuel this dramatic market strengthening that has yielded limited supply and will result in home prices increasing further,’ said Martha Pomares, chairman of the Miami Association of Realtors.
In May the average sales price for condominiums in Miami Dade County increased 23% to $310,454. The average sales prices for single family homes rose 9% to $368,619.
Statewide median sales prices in May increased 8.9% to $147,000 for single family homes and 14.3% to $112,000 for condominiums, according to Florida Realtors Industry Data.
The sales of existing condominiums in Miami Dade increased 10% in May, from 1,420 to 1,564, compared to record sales levels in May 2011. Sales of single family homes rose 14% from 875 to 993, compared to May 2011.
Statewide sales of existing single family homes totalled 18,723 in May 2012, up 7.5% compared to a year ago. Statewide condominium sales totalled 9,995, up 5.4% from those sold in May 2011. Nationally, sales of existing single family homes, town homes, condominiums, and co-ops decreased 1.5% from April and were 9.6% higher than they were in May 2011, according to the National Association of Realtors (NAR).
‘While international buyers continue to play a major role in boosting the Miami real estate market, there is also great demand from local and migrating US buyers,’ said Miami Association of Realtors residential president Patricia Delinois.
‘Population drives real estate, and Florida, one of the fastest growing states, is set to surpass New York in population by 2020 to become the third most populous state in the nation,’ she added.
Over the last year, the inventory of residential listings in Miami Dade County has dropped 33% from 16,943 to 11,403. Compared to the previous month, the total inventory of homes decreased 3%.
Currently, there are 4.2 months of supply in Miami Dade. Total housing inventory nationally decreased 0.4% at the end of May and was 20.4% below year ago levels, which represents a 6.6 month supply at the current sales pace.
Strong demand for bank owned properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In May, 46% of all closed residential sales in Miami Dade County were distressed, including REOs and short sales, compared to 57% in May 2011 and 47% the previous month.
In Miami-Dade County, 64% of total closed sales in May were all cash sales, compared to 60% in May 2011 and 63% the previous month. Cash sales accounted for 43% of single family and 78% of condominium closings. Nearly 90% of international buyers in Florida purchase properties all cash.
Nationally, all cash sales fell to 28% in May from 29% in April and 30% in May 2011, reflecting the stronger presence of international buyers in the Miami real estate market.