The Miami real estate market continues to thrive as demand for housing intensifies and increasing inventory remains insufficient.
Miami, FL (PRWEB) August 21, 2013
In July, number of sales and prices of Miami properties continued to surge amid tight supply, generating rapid sales and offers close to asking price, according to the 29,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
Single-family home sales again surged in July, up 27.3 percent from 964 a year earlier to 1,227 this July. This is the highest monthly number of sales for single-family homes in Miami-Dade since the height of the boom in 2005. Condominium sales increased 13.4 percent, up from 1,356 in July 2012 compared to 1,538 last month.
“The Miami real estate market continues to thrive as demand for housing intensifies and increasing inventory remains insufficient,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “Miami is a global city that is not surprisingly attracting worldwide attention on many fronts. Residents, visitors, tourists and business enterprises want to be in Miami and experience all that our unique and vibrant city and market offer. This attention is driving our real estate market and our economy.”
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 6.5 percent from June and were 17.2 percent higher than they were in July 2012, according to the National Association of Realtors. Statewide closed sales of existing single-family homes totaled 20,632 in July, up 17.5 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations.
Miami Double-Digit Price Appreciation
July’s figures mark 20 consecutive months of appreciation for both single-family homes and condominiums in Miami. The median sales price of single-family homes spiked 25.7 percent to $230,000 year-over-year and remained the same compared to the previous month. The median sales price of condominiums, which has significantly increased each of the last 25 months, jumped 33.3 percent to $180,500 compared to a year earlier but declined 2.7 percent compared to the previous month.
Compared to July 2012, the average sales price for single-family homes in Miami-Dade County increased 24.9 percent to $406,532, while the average sales price for condominiums increased 20.9 percent to $323,338.
U.S., Florida Median Sales Prices
The national median existing-home price for all housing types was $213,500 in July, a 13.7 percent increase from July 2013, according to NAR. The statewide median sales price for single-family existing homes last month was $179,500, up 20 percent from the previous year, while that of townhouse-condo properties was $129,000, up 22.9 percent over the previous year.
Properties Selling Fast, Close to Asking Price
Miami properties that are priced right are selling very quickly and yielding very high percentage of asking price. In July, the median days on the market for single-family homes and condominiums were 35 and 45 respectively, reflecting sales at a very rapid pace. The average percent of original list price received was 96.1 percent for single-family homes and 97.1 percent for condominiums.
“It’s an exciting time for Miami real estate,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “Miami has matured into a global, urban city that offers a very attractive lifestyle with endless opportunities for work, leisure, and cultural activities, adding great value to our market. Buyers and investors realize Miami will continue to generate housing demand and are taking advantage of the local affordability and the potential for profitability.”
Inventory Remains Tight
Active listings at the end of July increased 0.8 percent, from 12,547 to 13,583, compared to July 2012. Despite the slight increase in inventory, current active inventory remains insufficient to satisfy intense demand for Miami properties. Inventory of single-family homes increased 0.6 percent to 5,125 active listings, while that of condominiums increased 13.5 percent to 8,458 active listings. At the current sales pace, there is 4.9 months of supply of single-family homes and 6.0 months of supply of condominiums in Miami-Dade, representing a decrease of 14.2 percent and an increase of 5.6 percent respectively compared to year-ago levels.
Total housing inventory nationally increased 5.6 percent at the end of July but remains 5.0 percent below year-ago levels, representing a 5.1-month supply.
Distressed Sales Continue to Decline while Prices Rise
Sales of distressed properties continue to sharply decline in Miami-Dade County, particularly for short sales. In July, only 35.4 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 47.3 percent in June 2012. Nationally, distressed homes again accounted for 15 percent of July sales.
The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 9.3 percent to $147,000 and 27.8 percent to $115,000 respectively.
Cash Sales Account for 60% of Transactions
In Miami-Dade County, 60 percent of total closed sales in July were all-cash sales compared to 63.5 percent in July 2012. All-cash sales accounted for 43.3 percent of single-family home and 73.6 percent of condominium closings, compared to a year ago when cash sales were 44 percent and 77.4 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 31 percent of transactions in July, down from 33 percent the previous month and 29 percent in July 2012.
July 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 29,000 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/.