Miami Condominium Prices Continue to Rise; 2011 To Set Sales Record

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Sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 46 percent in September, from 582 to 848, compared to September 2010, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. Sales of existing condominiums increased 58 percent, from 833 to 1,319, compared to September 2010.

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We continue to experience record sales activity coupled with rising median and average sales prices in the Miami real estate market.

Sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 46 percent in September, from 582 to 848, compared to September 2010, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. Sales of existing condominiums increased 58 percent, from 833 to 1,319, compared to September 2010.

Statewide sales increased 10 percent to 15,036 for single-family homes and 10 percent to 6,666 for condominiums compared to September 2010. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops declined three percent from the previous month and but were 11.3 percent above September 2010, according to the National Association of Realtors (NAR).

“We continue to experience record sales activity coupled with rising median and average sales prices in the Miami real estate market,” said Jack H. Levine, 2011 Chairman of the Board of the MIAMI Association of REALTORS. “At the current sales pace, the local market is expected to reach 29,000 transactions this year, which would set a sales record and would surpass the sales volume during the height of the boom in 2005.”

International Buyers Fuel Cash Transactions
The percentage of cash transactions rose to 63 percent, up one percent compared to the previous month. Cash sales accounted for 42 percent of single-family and 76 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash. Nationally, all-cash sales accounted for 30 percent of transactions.

Condominium Prices Rise Again
In September, the median sales price for condominiums rose for the second consecutive month. The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county. In September, 59 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 69 percent in September 2010 and 56 percent the previous month.

The median sales price of condominiums in September increased a significant 17 percent to $116,000. The median sales price of single-family homes decreased six percent to $176,600 from a year earlier.

“There is great demand from international and domestic buyers and investors for South Florida REOs,” said 2011 MIAMI Association of REALTORS Residential President Ralph E. De Martino. “Based on the current robust level of sales activity, it is expected that regardless of any shadow inventory – distressed properties pending foreclosure or short sales or REOs yet to be listed for sale – that may come on the market, there is insufficient supply to satisfy demand.”

Statewide median sales prices increased one percent to $133,900 for single-family homes and seven percent to $87,200 for condominiums. The national median existing-home price for all housing types was $165,400 in September, down 3.5 percent from September 2010.

The average sales prices for single-family homes in Miami-Dade County increased 29.8 percent, from $264,602 in September 2010 to $343,497 in September 2011. The average sales price for condominiums increased 13 percent, from $187,185 in September 2010 to $211,455 last month.

Inventory Continues Sharp Decline
The inventory of residential listings in Miami-Dade County has dropped 38 percent, from 24,888 to 15,264 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped one percent from 15,405. Since August 2008, existing housing inventory has decreased more than 65 percent, down from 43,100.

Total housing inventory nationally fell two percent to 3.48 million at the end of September compared to the previous month.

Note: Statistics in this news release may vary depending on reporting dates.

About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating more than 90 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 60 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.

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