The 23 consecutive months of appreciation of Miami home and condo prices is a remarkable sign of the vitality and strength of South Florida’s real estate market.
Miami, FL (PRWEB) November 20, 2013
October marked the 23rd consecutive month where Miami home prices appreciated compared to October 2013 figures, according to a new report from the 30,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
The median sales price for a Miami home in October was $220,000, a significant increase of 18.9% when compared to $185,000 during the same period last year. Median condo prices also showed double-digit appreciation. The median sales price for a Miami condo was $170,000, an increase of 17.2% from the year-ago median price of $145,000.
“The 23 consecutive months of appreciation of Miami home and condo prices is a remarkable sign of the vitality and strength of the South Florida real estate market,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “Rising home and condo values is a reflection of increased demand from local, U.S., and international buyers from around the world, creating a great opportunity for sellers.”
Average sales prices were also marked by double-digit growth. The average sales price of a Miami single-family home in October was $421,546, a 29.9% increase compared to $324,611 at the same time last year. Similarly, average Miami condo prices increased by 11.8% to $296,568 relative to the prior year where the average price was $265,225.
Short Sales Decline, Traditional Sales Remain Strong
Overall, home and condo sales experienced a modest single-digit decline in October compared to last year’s figures, but remained strong relative to historical averages and performance. While traditional sales showed strong gains, short sales declined significantly due primarily to the government shutdown delaying transactions requiring tax return verifications. The Miami market has more short sales and REOs than most market in Florida and the U.S. Delays in FHA funding and other government related factors also contributed to fewer closings in October.
Last month, 1,060 homes were sold in Miami. This represented a modest decrease of 6.5% compared to 1,134 in October 2012. However, the figure was similar to September’s sales when 48 fewer homes were sold.
Condo sales were also strong in October. While the 1,416 condos sold in October represented a minor 1.2% decrease compared to year-ago figures, they were 4.7% greater than September’s condo sales figures of 1,352.
Double-Digit Growth in Traditional Sales
The market share and number of traditional sales continued to significantly grow in October compared to the year-ago figures. Of the 1,060 homes sold last month, 641 of them (60.5%) were traditional sales; meanwhile, REO and short sales accounted for 20.8% and 18.8% of last month’s sales, respectively. This is a significant increase in the number of traditional sales compared to October 2012 figures where they accounted for just half (49.8%) of sales and REO and short sales were 23.1% and 27%, respectively, of total sales for that month. Thus, traditional sales have experienced a significant double-digit growth of 13.5% relative to year ago figures. REO and short sales declined by 16% and 35.2%, respectively.
Condo sales saw similar increases last month. Of the 1,416 condo sales in Miami during October, 889 (62.8%) were traditional sales, an increase of nearly 8 percentage points compared to the same period during 2012 when traditional condo sales were 54.9% of all Miami condo transactions. Meanwhile, REO and short sales accounted for 24.1% and 13.1%, respectively, of total sales last month. October condo short sales during the same period in 2012 accounted for 24.6% of all condo sales.
“The double-digit growth in traditional real estate sales is a sign of continued strength in Miami’s real estate market,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “The significant growth in cash sales shows that Miami is the destination of choice for domestic and international buyers, who continue to play a major role in the local market.”
National and State Figures
The national median existing-home price for all housing types was $199,500 in October, up 12.8% percent increase from September 2013, according to the National Association of Realtors. The statewide median sales price for single-family existing homes last month was $169,000, up 16.6 percent from the previous year, while that of townhouse-condo properties was $130,000, up 22.1 percent over the previous year.
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 3.2 percent from September but were 6.0 percent higher than they were in October 2012. Statewide closed sales of existing single-family homes totaled 18,728 in October, up 6.5 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 8,598, up 3.1 percent from October 2012.
Nationally, distressed homes again accounted for 14 percent of October sales.
Active Listings Increase, Market Continues to Favor Sellers
Active listings in October increased by 18.3% from 14,903 in October 2013 to 12,597 during the same time the prior year.
There were 5,571 active home listings in Miami last month compared to 5,046 during the same time in 2012, an increase of 10.4%. The strongest growth in listings, however, was in condos. In October 2013 there were 9,332 active condo listings compared to 7,551 during the same period last year. This represented an increase of 23.5% in the number of active Miami listings.
At the current sales pace, there is a 5.3 month supply of single-family homes and 6.6 months of supply of condominiums in Miami-Dade, representing an increase of 17.8% and 24.5%, respectively, compared to year-ago levels.
Total housing inventory nationally declined at the end of October and was 1.8 percent below year-ago levels, representing a 5.2-month supply.
Miami Real Estate Selling Fast, Close to List Price
Miami real estate continues to sell rapidly and near listing prices.
The median number of days on the market for single-family homes sold in October 2013 was just 40 days, one less day than in September 2013, and a slight increase from 38 days in October 2012. The median number of days on the market for a condo was just 44 days, down 4.3% from September and slightly more than 43 during October 2012, a modest increase of just 2.3%.
Single-family homes sold on average at 96.3% of the listed price, up from 95% the prior year and 95.9 percent in September 2013. Selling prices for condominiums were on average 96.7 percent of the listed price last month.
Combined with the fast sales, this is a sign that homes are being priced right.
Cash Sales a Sign of International Buyers
Cash home and condo sales continue to be a major driving force behind Miami’s real estate boom, a sign of continued strength from international buyers, most of whom pay cash. Of the 1,060 homes sold last month, the 518 cash transactions accounted for 48.9% of all home sales, an increase of 3.2 percentage points relative to October 2012 when home cash sales were 45.7% of transactions.
The great majority of condo sales continue to be all cash transactions. According to the MIAMI October report, of the 1,416 condos sold last month, 71.2% of them (1,009) were paid in cash. Meanwhile, during the same period in 2012, condo cash transactions accounted for 76.6% of sales.
By comparison all-cash sales nationally accounted for 31 percent of transactions in October, down from 33 percent the previous month and up from 28 percent in October 2012.
October 2013 - Miami-Dade Statistical Reports
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 93 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 30,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S., and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.