Downtown Miami Condo Sales and Rentals Outpace National Trends

MIAMI—Even in the face of rising prices, Downtown Miami's residential market continues its rebound with sustained velocity for both sales and leasing. So says the Miami Downtown Development Authority’s 2012 Q2 Residential Market Trend Update.

“There is a growing trend toward urbanization taking shape across the country, with young professionals in particular seeking the convenience, lifestyle and amenities that urban living provides,” Alyce Robertson, executive director of the Miami DDA, tells GlobeSt.com. “Nowhere is this more apparent than in Downtown Miami where renters and buyers are flooding the market, absorbing existing inventory and creating demand for new product.”

According to the report, average monthly volume of residential sales in the second quarter was up about 7.2% from the first quarter average. Year-over-year the total sales in the first half of 2012 was up about 24% from 2011.

Meanwhile, average unit sales price in the second quarter was up about 9.1% ($404,927) over a year ago ($371,205). Average price per square foot of total units sold—new and resale—increased about 7% per square foot compared to the average recorded for the same period a year ago.

Residential leasing velocity reaccelerated in the second quarter of 2012. The average number of leases closed monthly during the second quarter of 2012 was up 26% from the 330 units per month average recorded during the first quarter of 2012.

The inventory of new, unsold condominium units still subject to first time market sales in the Downtown Miami area dropped below 2,900 units as of June 30. That’s down over 30% from a year ago, reflecting an average absorption of 155 units per month during the second quarter.

Foreclosure activity has continued to decline on a year-over-year basis. Total foreclosure filings and auction sales volume during the 12-month period from July 2011 through June 2012 were down 30% from the same period the year before. There are nine new condo projects with approximately 4,100 units currently proposed, planned or under construction.