On the global real estate stage, the spotlight is set on Miami. Experiencing record high sales and dramatic price increases, the real estate in South Florida’s Magic City has surpassed its pre-recession, condo boom days. With a myriad of development projects breaking ground across Greater Miami, the lack of inventory on the Miami Real Estate market has expedited the sales of remaining luxury condominiums in South Beach, Sunny Isles, and Brickell.
Increased Demand for Homes and Condos while Median Prices Soared by Double Digits Following record breaking sales activity for nearly three years, the Miami real estate market saw unprecedented growth in the third quarter of 2013 as demand for local real estate and limited supply continue to fuel double-digit growth in prices.
Median and Average Sales Prices Continue to Rise In the third quarter, the median sales price for homes in Miami-Dade County was $230,000, an increase of 21.3% compared to last year and 12% relative to the previous quarter. The median sales price for condos rose 26.6% to $183,600 in the third quarter compared to the second quarter of 2013.Third quarter price increases mark seven (7) quarters of increases for both single-family homes and condominiums.
In addition, compared to last year, the average sales prices for single-family homes and condominiums increased 8.1% to $381,517 and 19.3% to $329,418, respectively. “Despite more new listings coming on the market, supply remains tight, particularly for properties in lower price points, for current level of demand for Miami properties.
Nationally, the median sales price of existing single-family homes was $207,300 in the third quarter, up 12.5 percent from the third quarter of
2012. The national median sales price for condominiums was $205,400, a 15.1 percent increase over the previous year.
The statewide median sales price for singlefamily existing homes in the third quarter was $175,000, up 18.6 percent from the same quarter a year ago.The median sales price for condominiums in Florida was up 23.8 percent compared to the same quarter last year at $130,000.
Percentage of Cash Sales Declines In the third quarter, 59.3 percent of closed sales were all cash compared to 63.3 percent a year ago. All cash sales were 45 percent of single-family home closings and 71 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.
Home Inventory Moving Rapidly Despite More New Listings Homes were sold much faster during the third quarter of 2013 compared to the previous year.The median duration of a home listing during the last quarter was 37 days compared to 43 days during the same period last year, a significant decrease of 14%. Meanwhile, condo listing durations were comparable to 2012 figures at a median of 46 days compared to 43 last year.
Total third quarter active listings in MiamiDade County totaled 14,273, representing an increase of 14.2 percent. At the current sales pace, this reflects 4.9 months of inventory for single-family homes and 6.3 for condominiums. Months supply of inventory declined 12.5 percent for single-family homes and increased 11 percent for condominiums compared to the third quarter of 2012.
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DEC- JAN 2013/14
Sales, Listings of Homes and Condos Grew There were 8,027 homes and condos sold in Miami-Dade County during the third quarter of 2013. This represented a significant 21.2% and 8.7% increase in the sales of homes and condos, respectively, compared with the same period in 2012.
The growth in home sales was driven by a remarkable 89.5% increase in home sales $250,000 to $299,999 and a 67.7% growth in sales $600,000 to $999,999 when compared to the same time in 2012. Meanwhile, condo sales were driven by the 50.8% growth in condo sales $250,000 to $299,999 and a similar surge of 46.9% in condos $400,000 - $599,999 relative to the third quarter of last year. “The surge in sales of Miami homes and condos is driven by a robust demand for real estate from international buyers from worldwide markets – and large numbers of U. S. buyers from other states,”
Nationally, total existing-home sales, including
single-family and condos, rose 5.9 percent to a seasonally adjusted annual rate of 5.36 million in the third quarter from 5.06 million in the second quarter,and were 13 percent above the 4.74 million pace during the third quarter of 2012, according to the National Association of Realtors. Statewide closed sales of existing single-family homes totaled 60,661 in the third quarter, up 17.3 percent compared to the year-ago figure, according to the latest housing data release by Florida Realtors. Closed sales of condominiums totaled 27,200, up 11.3 percent compared to 2012. Home and condo listings also grew by double digits in the third quarter. There were 5,937 new single-family home listings during Q3, a growth of 15.3% relative to the same period last year. Meanwhile,new condo listings were stronger with an increase of 20.5% from 6,872 in Q3 2012 to 8,282 this year.