Pending sales along with other market indicators reflect the reality of a seller’s market in Miami.
(PRWEB) March 01, 2013
The total number of listings, including single-family homes and condominiums, that pended* in Miami-Dade County during the month of January increased 3.0 percent, from 3,645 to 3,073, year-over-year and 22.2 percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems. The number of single-family and condominium listings that pended in December increased 6.6 percent and 0.3 percent respectively compared to January 2012.
“Pending sales along with other market indicators reflect the reality of a seller’s market,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “With supply levels below what is considered a balanced market, particularly for single-family homes, sellers are benefiting from higher prices, increased equity, and rapid sales. Still it is important to remember that sales prices in Miami remain at 2003 levels, and the local market remains more affordable than other global cities.”
The number of new listings also rose in January compared to the previous year. An increase in properties for sale will help satisfy the strong demand that exists for Miami properties. The housing shortage in Miami-Dade County persists as active inventory remains below what is considered a balanced market.
In January, 2,790 single-family homes and 2,016 condominiums were listed, reflecting 12.9 percent and 8.6 percent increases respectively when compared to January 2012.
“While the percentage of new listings is increasing, the Miami real estate market needs more properties to satisfy demand,” said 2013 MIAMI Association of REALTORS Residential President
Fernando I. Martinez. “There is intense housing demand in Miami, fueled by foreign and second home buyers, population growth, and other factors. Whether it’s rentals or sales, properties are occupied and generating more interest. The current strength of the Miami market is not just beneficial for real estate, it is also helping boost our local economy.”
Sellers Offering Few Discounts
Limited supply coupled with rising demand is yielding offers that are increasingly closer to asking price. In January, single-family home and condominium sales received 94.5 percent and 96.8 percent respectively the averages of the original list price, compared to 91.3 percent and 94.4 percent in January 2012. The increase in percent of original list price received is an indication that rising demand is absorbing inventory more rapidly.
Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from 101.3 in December, according to the National Association of Realtors. The index is 9.5 percent higher than the 96.7 reported in January 2012.
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
*“Pended sales” are defined as only the sales that pended during a particular month.
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.