While the Miami real estate market continues to strengthen, rising inventory is fortunately creating a more balanced market between buyers and sellers. Such balance reflects the health of the local market.
Miami, FL (PRWEB) February 21, 2014
Following three consecutive record sales years and more than two years of appreciation, the Miami real estate market began the year with robust strengthening marked by double-digit increases for sales, prices and new listings, according to the 31,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
In January, residential real estate sales in Miami-Dade County increased 11.6 percent to 2,173 compared to 1,947 in January of last year. Single-family home sales increased 9.8 percent relative to January 2013, from 823 to 904. Compared to January 2013, condominium sales were up 12.9 percent from 1,124 sales the previous year to 1,269 sales last month.
Median Sale Prices Continue Double-Digit Price Appreciation
Median sale prices again increased significantly for both single-family homes and condominiums this January. The median sales price for single-family homes spiked by 16 percent, up to $225,000 from $194,000 in January 2013, marking 26 straight months of growth. The average sale price for single-family homes increased 32.3 percent from $308,978 in January 2013 to $408,626 last month.
“Record demand for Miami properties continues to fuel significant appreciation despite much needed supply readily becoming available,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “While the Miami real estate market continues to strengthen, rising inventory is fortunately creating a more balanced market between buyers and sellers. Such balance reflects the health of the local market.”
The median sales price for condominiums has increased for 31 consecutive months. Compared to January 2013, the median sales price for condominiums increased by 24.4 percent to $186,000 from $155,000 last year. The average sale price for a condominium increased to $361,295 from $290,378 in January 2013.
Seller Confidence Yields More New Listings
New listings of single-family homes increased 13.8 percent up to 1,739 in January 2014 from 1,663 during the same period in 2013. Condominium listings surged 20.1 percent from 2,790 in January 2013 to 3,352 last month. This reflects the success of the Miami Association of Realtors campaign to encourage homeowners to sell during the severe housing shortage we experienced in in 2012 and 2013. More inventory creates a more balanced market between buyers and sellers.
National and State Figures
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops fell 5.1 percent from December and were also 5.1 percent below what they were in January 2013, according to the National Association of Realtors (NAR). Statewide closed sales of existing single-family homes totaled 15,000 in January, up 10.2 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 7,377, up 9.3 percent from January 2013.
The national median existing-home price for all housing types was $188,900 in January, a 10.7 percent increase from January 2013, according to NAR. The statewide median sales price for single-family existing homes last month was $162,500, up 12.1 percent from the previous year, while that of townhouse-condo properties was $131,000, up 17.0 percent over the previous year.
“The current performance of the Miami market reflects seller confidence,” said 2014 MIAMI Association of REALTORS Residential President Francisco Angulo. “Homeowners in Miami have recovered value lost during the downturn and have realized it’s a good time to sell, which is bringing much needed supply to the local market after years of very limited housing inventory.”
Active Listings Continue to Increase
Active listings at the end of January increased 24 percent, from 13,319 in 2013 to 16,443 last month. Inventory of single-family homes increased 17.1 percent from 5,163 in January 2013 to 6,045 last month. Condominium inventory increased a significant 27.5 percent to 10,398 from 8,156 active listings during the same period in 2013. At the current sales pace, there is a 5.6-month supply of single-family homes, a slight increase from 5.3 months in January 2013, and a 7-month supply of condominiums, up from 6.0 months in January 2013, an increase of 20.9 percent.
At the end of the January, total housing inventory nationally rose 2.2 percent to 1.90 million existing homes available for sale.
Miami Real Estate Selling Fast, Close to List Price
Miami real estate continues to be sold quickly and almost at asking price. The median number of days on the market for single-family homes sold in January 2014 was just 46 days, a decrease of 2.1 percent from the prior year. In addition, the average percent of original list price received was 95.4 percent, up 1.0 percent from 47 days a year prior, indicating that single-family homes are being priced right and buyers realize they need to be competitive in the current market.
The median number of days on the market for condominiums sold in January was 56 days, an increase of 14.3 percent from the same period in 2013. The average sales price was 96.1 percent of the asking price, a negligible decrease of 0.7 percent.
Surge in Traditional Sales
In December 2013, the number of traditional sales significantly outnumbered REOs (bank-owned) and short sales. Last month, traditional single-family home transactions were 59 percent of all single-family homes sold in Miami, a significant increase of 23.4 percent. REO and short sales were 25 and 15.7 percent, respectively. In contrast, in January 2013, traditional single-family home sales accounted for 52.3 percent of all sales and REO and short sales were 21.2 and 26.4 percent, respectively.
In January 2014, there were 815 traditional condominium sales in the Miami real estate market, a significant growth of 20.7 percent from the 675 traditional sales during the same period in 2013. The 305 foreclosure sales accounted for 24 percent of condominium sales last month, an increase of 28.2 percent compared to the same period in 2013 when there were 238 foreclosure sales. Short sales experienced a double-digit decline of 29.4 percent from 211 in January 2013 to 149 last month, a continued sign of a strengthening real estate market.
Nationally, distressed homes again accounted for 15 percent of January sales, compared with 14 percent in December and 24 percent in January 2013.
Decline in Cash Sales
In Miami-Dade County, 62 percent of total closed sales in January were all-cash sales, compared to 65 percent in January 2013, but is still significantly higher than the national average of 33 percent. All-cash sales accounted for 47.3 percent of single-family home and 72.4 percent of condominium closings, compared to a year ago when cash sales were 50.1 percent of single-family home sales and 75.4 percent of condominium sales.
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.
Access January 2013 Miami-Dade Statistical Reports: SFMarketIntel.com
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 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.