Sales and prices in Miami residential real estate market up again
The Miami real estate market continued to experience rising sales and prices in the first quarter of 2014 due to increased demand from both foreign and domestic buyers, according to the latest report from the Miami Association of Realtors.
In the first quarter, the median sales price for homes in Miami-Dade County was $230,000, an increase of 11.8% compared to last year while the median sales price for condominiums rose 15.7% to $187,500. Prices for both single family homes and condominiums have now increased for nine quarters in a row.
‘Following three record sales years in Miami, it is remarkable that the local market continues to experience strong demand exceeding the previous year’s results,’ said Liza Mendez, chairman of the board of Miami Association of Realtors.
‘Despite the strong demand for Miami properties, increased inventory is creating a more balanced market between buyers and sellers,’ she added.
Compared to last year, the average sales prices for single-family homes and condominiums increased 17.9% to $430,312 and 16.9% to $359,860, respectively.
The state wide median sales price for single-family existing homes in the first quarter was $168,000, up 9.1% from the same quarter a year ago. The median sales price for condominiums in Florida was up 16.9% compared to the same quarter last year at $135,000.
Overall sales increased in the first quarter of 2014 by 3.8% compared with the same quarter in 2013. Sales of single family homes increased 7.4% while condo sales increased by 1.3%.
‘Despite record demand for Miami properties, affordability remains a reality. The majority of homes sold in Miami-Dade County in the first quarter were below $200,000 and prices remain what they were in 2003, creating opportunities for all types of buyers,’ said Francisco Angulo, the association’s residential president.
The report also says that the 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 first quarter, up 11.5% and 14.9% respectively.
Compared to the first quarter of 2013, months supply of inventory for single-family homes and condominiums increased 9.5% and 27.6% respectively. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
The median duration of a home listing during the last quarter was 47 days compared to 46 days during the same period last year, a slight increase of 2.2%. Similarly, the median days on the market for condominium listings were 57 days compared to 48 last year, an increase of 18.8%.
In the first quarter, 62% of closed sales were all cash compared to 65% a year ago. All cash sales were 48.4% of single family home closings and 71.4% of all condominium sales. Since nearly 90% 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.