Demand for housing in Miami from both foreign and domestic buyers continues to deplete local inventory and to drive significant price appreciation.
Miami, FL (PRWEB) March 21, 2013
The Miami real estate market continued to strengthen in February, as sales again increased despite limited inventory, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. Strong demand coupled with dwindling supply continues to fuel significant price appreciation.
Miami-Dade County residential sales increased 6.5 percent in February compared to a year earlier. The sales of existing single-family homes in Miami-Dade increased 6.8 percent, from 795 to 849. Sales of existing condominiums increased 6.3 percent, from 1,153 to 1,226, year-over-year.
“Demand for housing in Miami from both foreign and domestic buyers continues to deplete local inventory and to drive significant price appreciation,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “Miami remains a top market for net migration from other states in addition to being the top market in the nation for foreign buyers. Such demand will continue to strengthen Miami real estate long into the future.”
Statewide sales of existing single-family homes totaled 15,666 in February, up 10.3 percent compared to a year ago, according to the latest data released by Florida Realtors. Statewide condominium sales totaled 8,028, up 7.0 percent from February 2012. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 0.8 percent from January and were 10.2 percent higher than they were in February 2012, according to the National Association of Realtors.
Demand Expected to Continue Drive Appreciation
Miami home prices rose again in February, marking 15 consecutive months of appreciation for both single-family homes and condominiums. The median sales price of Miami-Dade condominiums, which has increased each of the last 19 months, rose 26.9 percent to $165,000 compared to a year earlier and 6.5 percent compared to the previous month. The median sales price of single-family homes rose 10.9 percent to $194,000 year-over-year and remained the same compared to the previous month.
The average sales price for single-family homes in Miami-Dade County increased 30.3 percent to $389,368. The average sales price for condominiums increased 14.7 percent to $304,472.
Florida and U.S. Home Prices
Statewide median sales prices in February increased 12.8 percent to $150,000 for single-family homes and 21.1 percent to $115,000 for condominiums. The national median existing-home price for all housing types was $173,600 in February, a 11.6 percent increase from February 2012, according to the National Association of Realtors (NAR).
“In Miami, we continue to see the results of great demand for residential real estate, particularly for homes and condominiums listed in the lower price ranges,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “Inventory listed below $200,000 is declining very rapidly and by a higher percentage margin than that of properties in higher price ranges. Still over the last few months we have experienced an uptick in luxury home sales, properties listed above $600,000.”
Inventory Shortage Persists
Active listings at the end of February were 8.1 percent below what they were in February 2012, when the market was already experiencing a housing shortage. Inventory of single-family homes dropped 10.2 percent, while that of condominiums decreased 6.6 percent. Currently, there are 5.3 months of supply of single-family homes and 5.6 months of supply of condominiums in Miami-Dade, representing drops of 18.3 and 10 percent respectively. Currently, there are 11,931 active listings in Miami-Dade County.
Total housing inventory nationally decreased 9.6 percent at the end of February and was 19.2 percent below year-ago levels, representing a 6.4-month supply.
Fewer Distressed Sales
Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation.
In January, 42.2 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 53.6 percent in February 2012 and 43.2 percent the previous month. Nationally, distressed homes accounted for 25 percent of February sales.
Cash Sales Reflect Presence of International Buyers
In Miami-Dade County, 66.8 percent of total closed sales in February were all-cash sales, compared to 65.5 percent in February 2013 and 64.7 percent the previous month. Cash sales accounted for 49.6 percent of single-family, a 16.0 percent increase over previous year, and 78.1 percent of condominium closings, and increase of 4.8 percent over previous year. 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 February, up from 28 percent the previous month and down from 31 percent in February 2012.
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 more than 90 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 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.