Such demand for Miami properties is driving robust price appreciation despite the fact that more properties are being listed for sale.
Miami, FL (PRWEB) September 19, 2013
The Miami real estate market continued to gain momentum in August, as prices and sales again rose year-over-year, generating rapid sales and offers close to asking price, according to the 30,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
Single-family home sales rose again in August, up 15.1 percent from 1,051 a year earlier to 1,210 this August. Condominium sales increased 7.9 percent, up from 1,476 in August 2012 compared to 1,592 last month.
“The Miami real estate market continues to attract record numbers of domestic and international buyers and investors,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “Such demand for Miami properties is driving robust price appreciation despite the fact that more properties are being listed for sale. Current levels of supply reflect a seller’s market, as more consumers are realizing it’s a good time to sell.”
Miami Double-Digit Price Appreciation
August’s figures mark 21 consecutive months of appreciation for both single-family homes and condominiums in Miami. The median sales price of single-family homes surged 20.5 percent to $235,000 year-over-year and 2.2 percent compared to the previous month. The median sales price of condominiums, which has significantly increased each of the last 26 months, spiked 27.5 percent to $180,500 compared to a year earlier and 5.3 percent compared to the previous month.
Compared to August 2012, the average sales price for single-family homes in Miami-Dade County decreased 11 percent to $364,960, while the average sales price for condominiums increased 22.3 percent to $346,847.
“While it’s a great time to sell in Miami, there are opportunities for buyers as well,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “Median sales prices in Miami-Dade County are what they were in 2004, which means a buyer today can still get affordable property in a world-class city that is approximately 35 percent below the peak.”
National and State Figures
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 1.7 percent from July and were 13.2 percent higher than they were in August 2012, according to the National Association of Realtors. Statewide closed sales of existing single-family homes totaled 20,933 in August, up 12.5 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. Statewide sales of condominiums totaled 9,491, up 6.3 percent from August 2012.
The national median existing-home price for all housing types was $212,100 in August, a 14.7 percent increase from august 2013, according to NAR. The statewide median sales price for single-family existing homes last month was $175,000, up 18.6 percent from the previous year, while that of townhouse-condo properties was $130,000, up 25.2 percent over the previous year.
Properties Selling Fast, Close to Asking Price
Miami properties that are priced right continue to sell very rapidly and to yield a very high percentage of asking price. In August, the median days on the market for single-family homes and condominiums were 35 and 46 respectively, reflecting sales at a very rapid pace. The average percent of original list price received was 96.2 percent for single-family homes and 97.2 percent for condominiums.
More Listings Need to Keep Up with Market Demand
Active listings at the end of August increased 3.1 percent, from 12,445 to 13,763, compared to August 2012. Despite an increase in housing inventory, more new listings are needed to satisfy demand for Miami properties. Inventory of single-family homes increased 3.1 percent to 5,220 active listings, while that of condominiums increased 15.7 percent to 8,543 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 12.7 percent and an increase of 7.6 percent respectively compared to year-ago levels.
Total housing inventory nationally increased 0.4 percent at the end of August but remains 6.3 percent below year-ago levels, representing a 5.0-month supply.
Distressed Sales Continue to Decline while Prices Rise
Sales of distressed properties continue to sharply decline in Miami-Dade County. In August, only 36 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 45 percent in August 2012. Nationally, distressed homes again accounted for 12 percent of August sales.
The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 19.2 percent to $155,000 and 24.7 percent to $112,250 respectively.
Cash Sales Account for 57% of Transactions
In Miami-Dade County, 57.2 percent of total closed sales in August were all-cash sales compared to 63.9 percent in August 2012. All-cash sales accounted for 43.8 percent of single-family home and 67.6 percent of condominium closings, compared to a year ago when cash sales were 44.8 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 32 percent of transactions in August, up from 31 percent the previous month and 27 percent in August 2012.
August 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.