The Miami real estate market continues to reflect strength and vitality fueled by demand from both foreign and domestic buyers.
Miami, FL (PRWEB) August 13, 2014
The Miami real estate market continued to experience rising prices in the second quarter of 2014 due to strong demand, particularly for single-family homes priced between $200,000 and $400,000, according to the 30,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.
Median and Average Sales Prices Continue to Rise
In the second quarter, the median sales price for homes in Miami-Dade County was $245,000, an increase of 8.9 percent compared to last year. The median sales price for condominiums rose 5.6 percent to $190,000 in the second quarter compared to a year earlier. Second quarter price increases mark ten (10) consecutive quarters of growth for both single-family homes and condominiums.
“The Miami real estate market continues to reflect strength and vitality fueled by demand from both foreign and domestic buyers,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “While supply is growing and creating more balance between buyers and sellers, inventory in certain price points and market segments remains tight, particularly for single-family homes. Financing for condominiums is still difficult to obtain, a fact that is hurting sales for this property type.”
Compared to last year, the average sales prices for single-family homes and condominiums increased 3.5 percent to $460,018 and 6.7 percent to $375,941, respectively.
Nationally, the median sales price of existing single-family homes was $212,400 in the second quarter, up 4.4 percent from the second quarter of 2013. The national median sales price for condominiums was $211,100, a 5.9 percent increase over the previous year.
The statewide median sales price for single-family existing homes in the second quarter was $180,000, up 5.3 percent from the same quarter a year ago. The median sales price for condominiums in Florida was up 10.1 percent compared to the same quarter last year at $142,000.
Sales Continue to Rise for Properties in Low to Mid-Price Ranges
There were 8,139 homes and condos sold in Miami-Dade County during the second quarter of 2014, a negligible decrease of 0.9 percent compared to the second quarter of 2013, when there was record sales activity. Sales of single-family homes increased 4.9 percent to 3,650, while condominium sales decreased 5.2 percent to 8,214 compared with the same period in 2013.
Sales of single-family homes priced between $200,000 and $400,000 surged 68 percent in the second quarter of 2014 compared to the same period in 2013. Sales of condominiums priced between $100,000 and $400,000 increased 35 percent in the second quarter.
“As the Miami real estate market continues to normalize and perform in a healthy manner, there are increased opportunities for all types of buyers,” said 2014 MIAMI Association of REALTORS Residential President Francisco Angulo. “While inventory is still limited depending on the area and price range, buyers generally have more to choose from and prices remain at affordable 2003 levels.”
Nationally, total existing-home sales, including single-family and condos, increased 5.8 percent to a seasonally adjusted annual rate of 4.87 million in the second quarter from 4.60 million in the first quarter, but were 4.5 percent below the 5.10 million pace during the second quarter of 2013, according to the National Association of Realtors.
Statewide closed sales of existing single-family homes totaled 67,579 in the second quarter, up 7.3 percent compared to the year-ago figure, according to the latest housing data release by Florida Realtors. Closed sales of condominiums totaled 30,918, down 3.4 percent compared to 2013.
Home Inventory Moving Rapidly Despite More New Listings
The Miami Association’s initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market. The fact that sales remain at historically strong levels while inventory is growing points to seller confidence. Sellers are listing properties for sale because they have confidence in the market.
Home and condominium listings also increased in the second quarter but by narrower margins. There were 8,635 new single-family home listings during the second quarter, a growth of 4.0 percent relative to the same period last year. New condominium listings increased 3.8 percent from 6,025 in the second quarter of 2013 to 6,255 this year.
Second quarter active listings in Miami-Dade County totaled 17,089, representing an increase of 29.9 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 5.5 months of inventory for single-family homes and 7.8 for condominiums. Compared to the second quarter of 2013, months supply of inventory for single-family homes and condominiums increased 13.5 percent and 33.6 percent respectively. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
The median duration of single-family home listings during the second quarter was 43 days compared to 40 days during the same period last year, a slight increase of 7.5 percent. Similarly, the median days on the market for condominium listings were 56 days compared to 45 last year, an increase of 24.4 percent.
Percentage of Cash Sales Declines
In the second quarter, 57.6 percent of closed sales were all cash compared to 62.6 percent a year earlier. All cash sales were 43.9 percent of single-family home closings and 68.8 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.
2Q 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 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 official partnerships with 120 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.