While demand for Miami real estate continues to generate price appreciation, we are experiencing more moderate growth.
Miami, FL (PRWEB) February 11, 2014
The Miami real estate market continued to experience strengthening in the fourth quarter of 2013 as demand for local real estate continued to fuel double-digit price growth, according to the 31,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.
Median and Average Sales Prices Continue to Rise
In the fourth quarter, the median sales price for homes in Miami-Dade County was $235,000, an increase of 18.1 percent compared to last year. The median sales price for condominiums rose 12.9 percent to $175,000 in the fourth quarter compared to the second quarter of 2013. Fourth quarter price increases mark eight (8) consecutive quarters of growth for both single-family homes and condominiums.
“While demand for Miami real estate continues to generate price appreciation, we are experiencing more moderate growth,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “As more homeowners are listing their homes for sales, we are seeing a more balanced market that is good for both buyers and sellers. Home prices remain at 2004 levels, while substantial inventory is available in all price points, creating opportunities for all types of buyers.”
Compared to last year, the average sales prices for single-family homes and condominiums increased 2.7 percent to $401,996 and 4.6 percent to $316,767, respectively.
Nationally, the median sales price of existing single-family homes was $196,900 in the fourth quarter, up 10.1 percent from the third quarter of 2012. The national median sales price for condominiums was $197,200, a 10.7 percent increase over the previous year.
The statewide median sales price for single-family existing homes in the fourth quarter was $170,000, up 13.3 percent from the same quarter a year ago. The median sales price for condominiums in Florida was up 18.8 percent compared to the same quarter last year at $133,000.
Negligible Sales Decline for Condos
There were 7,298 homes and condos sold in Miami-Dade County during the fourth quarter of 2013, representing a negligible decline of 0.9 percent compared to the fourth quarter of 2012. Sales of single-family homes increased 0.1 percent to 3,182, while condominium sales declined 1.7percent to 4,116 compared with the same period in 2012.
“Sales remain strong as demand for Miami properties from both international and domestic buyers persists,” said 2014 MIAMI Association of REALTORS Residential President Francisco Angulo. “As a global city offering an exciting lifestyle, moderate year-round weather, and a healthy economy, Miami will continue to attract second home buyers, new residents, and new business enterprises long into the future, which will generate further demand for Miami real estate.”
Nationally, total existing-home sales, including single-family and condos, fell 7.8 percent to a seasonally adjusted annual rate of 4.30 million in the fourth quarter from 5.36 million in the third quarter, and were 0.8 percent above the 4.90 million pace during the fourth quarter of 2012, according to the National Association of Realtors.
Statewide closed sales of existing single-family homes totaled 54,845 in the fourth quarter, up 4.7 percent compared to the year-ago figure, according to the latest housing data release by Florida Realtors. Closed sales of condominiums totaled 24,538, down 2.1 percent compared to 2012.
The Miami Association’s initiatives to increase inventory and focus on assisting members to get more listings has made progress along with some additional distressed properties coming on the market. Home and condominium listings also grew by double digits in the fourth quarter. There were 5,548 new single-family home listings during the fourth quarter, a growth of 17.1 percent relative to the same period last year. New condominium listings increased 9.2 percent from 6,946 in the fourth quarter of 2012 to 7,585 this year.
Percentage of Cash Sales Declines
In the fourth quarter, 60 percent of closed sales were all cash compared to 63.3 percent a year ago. All cash sales were 45.4 percent of single-family home closings and 71.5 percent of all condominium sales. Since nearly 90 percent of foreign buyers pay cash, this reflects Miami’s position as a top market for foreign buyers. Miami has a significant percentage of international buyers, generating many more cash transactions than the national average.
Home Inventory Moving Rapidly Despite More New Listings
Homes were sold faster during the fourth quarter of 2013 compared to the previous year. The median duration of a home listing during the last quarter was 40 days compared to 41 days during the same period last year, a decrease of 2.4 percent. Similarly, the median days on the market for condominium listings were 47 days compared to 46 last year, a 2.2 percent decrease compared to the fourth quarter of 2013.
In 2013, MIAMI launched a campaign to encourage homeowners to sell and provide much needed supply to the local market. Fourth quarter active listings in Miami-Dade County totaled 15,963, representing an increase of 24.3 percent. This reflects the success of the MIAMI campaign to achieve a more balanced market between buyers and sellers. At the current sales pace, current inventory represents 5.6 months of inventory for single-family homes and 7.0 for condominiums. Compared to the fourth quarter of 2013, months supply of inventory for single-family homes and condominiums increased 6.4 percent and 21.6 percent respectively. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
4Q Miami-Dade Statistical Reports – go to SFMarketIntel.com.
Note: Statistics in this news release may vary depending on reporting dates. 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 94 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of five organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, the YPN Council and the award-winning International Council, it represents more than 31,000 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 official partnerships with more than 115 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.