Miami Real Estate Shows Rallying Figures
PropertyCommunity.com has reported that sales of residential property in Miami, Florida are continuing to rise and that they have largely taken the lead in the area’s real estate recovery.
Existing single family home sales in the Miami Metropolitan Statistical Area rose 46 percent in September, according to figures from the member Miami Association of Realtors (MAR).
Sales of existing condominiums rose 58 percent and statewide sales by 10 percent. On the national level, sales of existing single family homes, townhomes, condominiums, and co-ops declined 3 percent from September, but were 11.3 percent above the same period last year, according to the National Association of Realtors.
“We continue to experience record sales activity coupled with rising median and average sales prices in the Miami real estate market,” said Jack Levine, chairman of the MAR Board.
“At the current sales pace, the local market is expected to reach 29,000 transactions this year, which would set a sales record and would surpass the sales volume during the height of the boom in 2005,” he continued.
International buyers have added to the number of cash sales. The amount of cash transactions rose to 63 percent, up a single percentage point compared to last month. All totaled, cash sales made 42 percent of single family home sales and 76 percent of condominium sales. Nearly 90 percent of international buyers in Florida purchased properties exclusively with cash and nationally, cash sales made for 30 percent of all transactions.
In September, the median sales price for condominiums rose for the second consecutive month, sitting at $116,000. This is an increase of 17 percent. The median sales price of single family homes decreased six percent to $176,600 from a year earlier.
In September, 59 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 69 percent in September 2010 and 56 percent the previous month.
“There is great demand from international and domestic buyers and investors for South Florida REOs,” said MAR president Ralph De Martino.
“Based on the current robust level of sales activity, it is expected that regardless of any shadow inventory, distressed properties pending foreclosure or short sales or REOs yet to be listed for sale, that may come on the market, there is insufficient supply to satisfy demand,” he added.
Statewide median sales prices increased one percent to $133,900 for single family homes and seven percent to $87,200 for condominiums. The national median existing home price for all housing types was $165,400 in September, down 3.5 percent from September 2010.
The average sales prices for single family homes in Miami-Dade County increased 29.8 percent from $264,602 in September 2010 to $343,497 in September 2011. The average sales price for condominiums increased 13 percent from $187,185 in September 2010 to $211,455 last month.
The inventory of residential listings in Miami-Dade County sunk 38 percent from 24,888 to 15,264 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped 15 percent from 15,405. Since August 2008, existing housing inventory has decreased more than 65 percent, down from 43,100.
Total housing inventory nationally fell two percent to 3.48 million at the end of September compared to the previous month.
