The consistent boost in residential and condominium sales in Miami indicates that buyers and investors are moving quickly to purchase these properties while supply levels remain historically low.
Miami, FL (PRWEB) May 22, 2013
Luxury condo sales in the Miami real estate market soared in April leading a growing demand for condominium properties, according to the 27,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
MLS figures show that, this April, million-dollar condominium unit sales grew 61.3 percent compared to sales figures for April 2012. This increase helped grow overall condo sales, which spiked 18.7 percent this April compared to last year’s figures. Single-family home sales also rose this April, growing 15.2 percent last month compared to April 2012.
Statewide sales of existing single-family homes totaled 20,662 in April, up 17.4 percent compared to a year ago, according to the latest data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor associations and MLSs. Statewide condominium sales totaled 11,183, up 13.6 percent from April 2012. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 0.6 percent from March and were 9.7 percent higher than they were in April 2012, according to the National Association of Realtors.
April’s sales performance marks 17 consecutive months of appreciation for both single-family homes and condominiums. The median sales price of single-family homes increased 23.7 percent to $225,000 year-over-year and remained the same as the previous month. The median sales price of condominiums, which has significantly increased each of the last 22 months, rose 17.1 percent to $175,000 compared to a year earlier and 4.8 percent compared to the previous month.
“The consistent boost in residential and condominium sales in Miami indicates that buyers and investors are moving quickly to purchase these properties while supply levels remain historically low,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “After two record sales years coupled with very tight supply, it seemed sales would not exceed last year’s activity. Yet Miami real estate sales appear to be surging again.”
Compared to last year’s sales figures, the average sales price for single-family homes in Miami-Dade County this April increased 3.9 percent to $421,207, while the average sales price for condominiums increased 14.5 percent to $332,955.
Florida and U.S. Home Prices
Statewide median sales prices in April increased 14.2 percent to $165,000 for single-family homes and 16.4 percent to $128,000 for condominiums. The national median existing-home price for all housing types was $192,800 in April, an 11.0 percent increase from April 2012, according to the National Association of Realtors (NAR).
More New Listings Necessary to Satisfy Demand
Active listings at the end of April dropped 2.1 percent, from 13,155, to 12,883, compared to April 2012, when the market was already experiencing a housing shortage. Inventory of single-family homes dropped 6.9 percent, while that of condominiums decreased 1.1 percent. At the current sales pace, there is 4.9 months of supply of single-family homes and 5.7 months of supply of condominiums in Miami-Dade, representing drops of 16.9 and 6.1 percent respectively compared to year-ago levels. Currently, there are 11,815 active listings in Miami-Dade County.
“Miami has cemented its status as a sellers’ market,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “Demand is intensifying while inventory remains low. While new listings are coming on the market, there is still insufficient supply to satisfy demand. This creates an excellent opportunity for sellers who may have been waiting to list their properties.”
Total housing inventory nationally increased 12 percent at the end of April but remains 14 percent below year-ago levels, representing a 5.2-month supply.
Fewer Distressed Sales Result in Rising Prices
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. Sales of distressed properties continue to sharply decline in Miami-Dade County, as prices for both REOs and short sales also rose significantly. In April, only 36.7 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 45.4 percent in April 2012 and 41.1 percent the previous month. Nationally, distressed homes accounted for 18 percent of April sales.
The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 33.6 percent to $160,457 and 20.9 percent to $104,000 respectively.
Cash Sales Remain Strong
In Miami-Dade County, 64.8 percent of total closed sales in April were all-cash sales, remaining about the same compared to year-ago levels and to the previous month. All-cash sales accounted for 47 percent of single-family home and 77.3 percent of condominium closings, compared to a year ago when cash sales were 46.5 percent and 77.8 percent of closed sales respectively. Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this reflects the much stronger presence of international buyers in the Miami real estate market. By comparison all-cash sales nationally accounted for 32 percent of transactions in April, up from 30 percent the previous month and 29 percent in April 2012.
Access Miami-Dade Monthly Market Statistical Reports – April 2013:
- Single Family Homes • Monthly Market Summary
- Townhouses and Condos • Monthly Market Summary
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 27,000 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.