Experts attribute the growth to continued interest from international buyers who are snapping up properties at bargain prices. Sales increased more than 15% in August for single-family homes and nearly 8% for condos. The result is stronger price appreciation, which in turn fuels more sales. Meanwhile, sales of distressed homes continue to slide as inventory dwindles.
The Miami real estate market, one of the most popular in the United States with overseas buyers, continued to gain momentum in August, as prices and sales again rose year on year.
The market is currently experiencing rocketing prices, rapid sales and offers close to asking price, according to the data from the 30,000 member Miami Association of Realtors.
Its most recent market report shows that single family home sales rose again in August, up 15.1% while condominium sales increased 7.9%.
‘The Miami real estate market continues to attract record numbers of domestic and international buyers and investors,’ said Natachsa Tello, chairman of the board of the Miami Association of Realtors.
‘Such demand for Miami properties is driving robust price appreciation despite the fact that more properties are being listed for sale. Current levels of supply reflect a seller’s market, as more consumers are realizing it’s a good time to sell,’ she added.
Meanwhile, in August the median sales price of single family homes surged 20.5% to $235,000 year on year and 2.2% compared to the previous month. The median sales price of condominiums, which has significantly increased each of the last 26 months, grew 27.5% to $180,500 compared to a year earlier and 5.3% compared to the previous month.
Compared to August 2012, the average sales price for single family homes in Miami-Dade County decreased 11% to $364,960, while the average sales price for condominiums increased 22.3% to $346,847.
‘While it’s a great time to sell in Miami, there are opportunities for buyers as well. Median sales prices in Miami-Dade County are what they were in 2004, which means a buyer today can still get affordable property in a world-class city that is approximately 35% below the peak,’ said Fernando Martinez, residential president of the Miami Association of Realtors.
He pointed out that Miami properties that are priced right continue to sell very rapidly and to yield a very high percentage of asking price. In August, the median days on the market for single family homes and condominiums were 35 and 46 respectively, reflecting sales at a very rapid pace. The average percent of original list price received was 96.2% for single family homes and 97.2% for condominiums.
Agents say that more listing are needed to keep up with demand. Active listings at the end of August increased 3.1% from 12,445 to 13,763, compared to August 2012. Despite an increase in housing inventory, more new listings are needed to satisfy demand for Miami properties.
Inventory of single family homes increased 3.1% to 5,220 active listings, while that of condominiums increased 15.7% to 8,543 active listings. At the current sales pace, there is 4.9 months of supply of single family homes and six months of supply of condominiums in Miami-Dade, representing a decrease of 12.7% and an increase of 7.6% respectively compared to year ago levels.
Sales of distressed properties continue to sharply decline in Miami-Dade County. In August, only 36% of all closed residential sales in Miami-Dade County were distressed, including REOs (bank owned properties) and short sales, compared to 45% in August 2012. The median sales price of single family home and condominium foreclosures in Miami-Dade increased 19.2% to $155,000 and 24.7% to $112,250 respectively.
Cash sales, which are favored by overseas buyers, accounted for 57.2% of transactions compared to 63.9% in August 2012. All cash sales accounted for 43.8% of single family home and 67.6% of condominium closings, compared to a year ago when cash sales were 44.8% and 77.4% of closed sales respectively.
The Miami Association of Realtors pointed out that since nearly 90% 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 in the United States accounted for 32% of transactions in August, up from 31% the previous month and 27% in August 2012.