Unquestionably, the report shows we're heading toward a healthier market.
Miami, FL. (PRWEB) July 25, 2011
Increased sales activity and slowly rising prices have had a positive impact on Miami’s current residential real estate market according to the new Douglas Elliman Report: Miami Sales 2Q 2011. The comprehensive and timely report analyses regional data on condos and single-family homes in Miami-Dade’s coastal communities and has been expanded to include a breakdown on distressed and non-distressed sales -- defined as foreclosure and short sales. The report was commissioned by Douglas Elliman and produced by Miller Samuel, a long-trusted industry source.
“We’re pleased to note that the Miami non-distressed real estate market is beginning to stabilize after years of decline,” said Vanessa Grout, President and CEO of Douglas Elliman Florida. “This has been the most active market since 2006 and there are indications that prices, while mixed, will continue to trend higher in favored areas.”
The South Beach submarket is especially notable with both closed prices and sales up compared to the prior quarter. In Miami Beach and Downtown Miami, sales jumped as prices fell. In North Miami-Dade prices were mixed while the number of sales was up sharply. The high number of all-cash buyers is especially significant: They account for 78 percent of condo distressed sales, (presumably for investment) while in the non-distressed market, all-cash buyers, (mainly looking for second-homes) account for 71percent of purchases in the high-end condo market.
The report records the different performance between distressed and non-distressed property.
Non-distressed sales of condos and single-family homes represent a different housing stock, consistently about 35 percent larger in size. Non-distressed prices are up 6 percent to 9 percent.
Distressed sales represented 54 percent of all sales, and fell from 65 percent of all sales last quarter. This indicates that lenders, still dealing with the 'robosigning' controversy, are not putting all bank-owned properties on the market. We can expect the number to rise again later this year. Distressed prices are down 8 percent to 14 percent.
Key Trends for Miami Market compared to 1Q-2011
Average Sales Price: Up 30% -- $339,261
Median Sales Price: Up 16.1 % -- $162,500
Average Price per Square Foot: Up 21.6% -- $225
Number of Sales (Closed) Up 9.3% -- 5,577
Days on Market: (from last list date) Up 3% --68
Listing Discount (from last list price) 9.4%
Listing Inventory (active) 16,281 1Q-2011
Absorption Rate (mos) 8.8 cf 7.3 1Q-2011
About Douglas Elliman Florida
Since it's founding in 1911, the name Douglas Elliman has been synonymous with the most exacting standards of excellence in the real estate industry.With unparalleled reach within Dade, Broward and Palm Beach Counties, as well as an association with 3000 New York-based agents, Douglas Elliman Florida's primary focus is to exceed your expectations of service, performance and results. Services for which Douglas Elliman Florida is noted include full service real estate brokerage, exclusive residential sales and leasing and new development marketing and sales. For more information, please visit Douglas Elliman on Facebook at http://www.facebook.com/ellimanflorida.
About Miller Samuel
Miller Samuel is an appraisal and consulting services firm covering the New York City metropolitan area. Miller Samuel provided property valuations of more than $5,000,000,000 in the past year. The company's clients include domestic and international financial institutions, law firms, consulting firms, developers, employee relocation companies, co-op and condo boards, managing agents, individuals and government agencies. The firm has authored this report series since 1994. For more information visit http://www.millersamuel.com.