The remarkable rise in Miami home prices over the last seven months reflects the strong demand that exists for local properties.
Miami, FL (PRWEB) July 19, 2012
Miami home prices again posted strong gains in June, marking seven consecutive months of appreciation. The median sales price of condominiums in Miami-Dade County increased a significant 34 percent to $160,000 compared to a year earlier, according to the a 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose five percent to $194,250.
“The remarkable rise in Miami home prices over the last seven months reflects the strong demand that exists for local properties,” said 2012 Chairman of the Board of the MIAMI Association of REALTORS Martha Pomares. “While worldwide foreign buyers and investors continue to play a major role in boosting the performance of the Miami real estate market, U.S. baby boomers, residents migrating from other states, and vacation and second home buyers are all having a major impact.”
In June the average sales price for condominiums in Miami-Dade County increased 24.2 percent to $325,748. The average sales prices for single-family homes rose 21 percent to $420,704.
Florida Statewide Home Prices
Statewide median sales prices in June increased 8.2 percent to $151,000 for single-family homes and 15.8 percent to $110,000 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $189,400 in June, a 7.9 percent increase from June 2011.
Miami Condominium Sales Rise in June
Total residential sales in Miami-Dade County increased two percent compared to a year earlier. The sales of existing condominiums in Miami-Dade increased four percent, from 1,314 to 1,368, compared to record sales levels in June 2011. Sales of single-family homes decreased two percent, from 923 to 906, compared to same time period.
Statewide sales of existing single-family homes totaled 18,800 in June 2012, up 5.3 percent compared to a year ago. Statewide condominium sales totaled 9,202, up 1.5 percent from those sold in June 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 5.4 percent from May but were 4.5 percent higher than they were in June 2011, according to the National Association of Realtors (NAR).
“The Miami real estate market is unlike any other in the U.S., as evidenced by a recovery that was faster and stronger than any other and that far exceeded experts’ expectations,” said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. “But financing remains a hurdle for many qualified buyers. In a market like Miami, where there is clear growth and demand, loosening unnecessarily tight lending standards would result in further strengthening.”
Housing Inventory Continues to Decrease
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 29 percent from 16,252 to 11,625. Compared to the previous month, the total inventory of homes increased two percent. Currently, there are 4.2 months of supply in Miami-Dade. Total housing inventory nationally decreased 3.2 percent at the end of June and was 24.4 percent below year-ago levels, which represents a 6.4-month supply at the current sales pace.
Distressed Sales Decrease
Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation. In June, 44 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 57 percent in June 2011 and 46 percent the previous month.
International Buyers Fuel Cash Sales
In Miami-Dade County, 65 percent of total closed sales in June were all-cash sales, compared to 60 percent in June 2011 and 64 percent the previous month. Cash sales accounted for 46 percent of single-family and 77 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash. Nationally, all-cash sales edged up to 29 percent in June - from 28 percent in May and 29 percent in June 2011 - reflecting the stronger presence of international buyers in the Miami real estate market.
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.
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 100 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.