Strong demand from international buyers is fueling robust sales activity in Miami despite low consumer confidence and high unemployment.
Miami, FL (PRWEB) November 11, 2011
In the Miami Metropolitan Statistical Area (MSA), sales of homes – including existing single-family homes and condominiums – increased 51 percent, from 4,239 in the third quarter of 2010 to 6,412 in the third quarter of 2011according to the 25,000-member MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service. This rise marks 13 consecutive quarters, since the third quarter of 2008, of increasing sales.
The Miami MSA again posted the highest sales increases of any major metro area for condominiums and of all single-family home markets in Florida. Miami sales of existing single-family homes increased 47 percent compared to a year earlier. The sales of existing condominiums in Miami spiked 48 percent compared to the third quarter of 2010. Statewide sales of single-family homes increased 12 percent while that of condominiums increased 13 percent. Nationally, total state existing-home sales, including single-family and condo, declined 0.1 percent compared to the second quarter of 2011 but were 17 percent below the third quarter of 2010.
“Strong demand from international buyers is fueling robust sales activity in Miami despite low consumer confidence and high unemployment,” said Jack H. Levine, 2011 Chairman of the Board of the MIAMI Association of REALTORS. “Local sales are expected to set a record this year that should exceed the height of the boom in 2005. We expect even stronger market performance in 2012 the job market and consumer confidence improve and distressed properties continue to be absorbed.”
NAR Chief Economist Bold Prediction for Miami in 2012
NAR Chief Economist Lawrence Yun yesterday predicted at MIAMI’s 17th Annual International Real Estate Congress further strengthening for the South Florida market in 2012. “My bold prediction for 2012 is that we will see double digit price increases in Miami in 2012,” said Yun. “Miami is the top destination for foreign buyers. More international sales during the downturn proves international buyers have fueled the local market recovery. There is also high demand for distressed properties on a local level.”
Sales Prices Rise
Short sales and foreclosures continue to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county.
The average sales price of single-family homes rose 19 percent, from $275,644 in the third quarter of 2010 compared to $327,477 in the third quarter of 2011. The average price of condominiums increased 21 percent, from $191,609 to $232,158.
The median sales price for condominiums rose an impressive 13 percent to $117,800. The median sales price for single-family homes in Miami-Dade dropped only six percent to $179,900 in the first quarter. Statewide, median sales prices remained the same at $136,000 for single-family homes and rose seven percent to $89,600 for condominiums. The national median existing single-family home price was $169,500 in the third quarter, down 4.7 percent from $177,800 in the third quarter of 2010.
“As the prime destination for international buyers, the Miami market offers much optimism,” said MIAMI Association of REALTORS Residential President Ralph E. De Martino. “Foreign buying activity has been absolutely essential in helping our market exceed expectations and outperform the nation.”
Total housing inventory in Miami-Dade County has decreased 38 percent from a year ago and six percent from the previous quarter. Since August 2008, when home sales began to rise, local inventory has declined 65 percent.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating over 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.