Miami Home Prices Rise Despite Distressed Sales

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Sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 49 percent in August, from 637 to 951, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. Sales of existing condominiums increased 60 percent, from 818 to 1,311, compared to August 2010.

The fact that home prices are rising despite distressed sales that account for the majority of sales is indicative of very positive trends in the Miami marketplace.

Sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 49 percent in August, from 637 to 951, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. Sales of existing condominiums increased 60 percent, from 818 to 1,311, compared to August 2010.

Statewide sales increased 15 percent to 16,206 for single-family homes and 18 percent to 7,098 for condominiums compared to August 2010. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 7.7 percent from the previous month and were 18.6 percent above August 2010, according to the National Association of Realtors (NAR).

“The fact that home prices are rising despite distressed sales that account for the majority of sales is indicative of very positive trends in the Miami marketplace,” said Jack H. Levine, 2011 Chairman of the Board of the MIAMI Association of REALTORS. “If prices are rising for countywide figures that include distressed properties, strengthening would be that much greater if distressed listings were eliminated or reduced. We believe the Miami market in terms of pricing has bottomed.”

Cash Transactions
The percentage of cash transactions rose to 62 percent, up three percent compared to the previous month. Cash sales accounted for 42 percent of single-family and 76 percent of condominium closings. Nationally, all-cash sales accounted for 29 percent of transactions.

Condominium Prices Rise
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

August, 56 percent of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 67 percent in August 2010 and 57 percent the previous month.

The median sales price of single-family homes in August decreased a negligible one percent to $180,900 from a year earlier. The median sales price of condominiums increased 13 percent to $118,800.

“Florida and South Florida are by far the top areas in the nation for international home buying activity,” said 2011 MIAMI Association of REALTORS Residential President Ralph E. De Martino. “Already a magnet for international and for second and vacation home buyers, Miami is now attracting domestic and foreign buyers who recognize that the market has bottomed, and prices are on the upswing.”

Statewide median sales prices increased two percent to $137,500 for single-family homes and 12 percent to $91,100 for condominiums. The national median existing-home price for all housing types was $168,300 in August, down 5.1 percent from August 2010.
The average sales prices for single-family homes in Miami-Dade County increased 13.5 percent, from $285,419 in August 2010 to $324,034 in August 2011. The average sales price for condominiums increased 35 percent, from $173,752 in August 2010 to $234,528 last month.

Local Housing Inventory Continues to Decline
The inventory of residential listings in Miami-Dade County has dropped 40 percent, from 25,679 to 15,405 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped two percent from 15,697. Since August 2008, existing housing inventory has decreased more than 66 percent, down from 43,100.

Total housing inventory nationally fell 3.0 percent to 3.58 million at the end of August.

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 24,000 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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