MIAMI—Miami's real estate market is starting the year the same way it finished 2012: strong. Rising sales and prices amid limited supply remains the storyline here.
According to the Miami Association of Realtors, Miami-Dade County residential sales increased 7.5% in January compared to a year earlier. The sales of existing single-family homes in Miami-Dade increased 19.1%, from 691 to 823. Sales of existing condominiums increased 0.3 percent, from 1,121 to 1,124, year-over-year.
“We expect prices to continue to rise as a result of the significant demand that currently exists for both sales and rentals,” says 2013 Chairman of the Board of the Miami Association of Realtors Natascha Tello. “While more new listings are coming on the market, there still is insufficient supply to satisfy consumer demand and significant fewer new listings in the lower price ranges.”
Miami home prices rose again in January, marking 14 consecutive months of appreciation for both single-family homes and condominiums. The median sales price of Miami-Dade condominiums, which has increased each of the last 19 months, rose 24.1% to $155,000 compared to a year earlier and decreased 4.9% compared to the previous month. The median sales price of single-family homes rose 14.8% to $194,000 year-over-year and decreased 9.4 % compared to the previous month.
Active listings at the end of January were 10.7% below what they were in January 2012, when the market was already experiencing a housing shortage. Inventory of single-family homes dropped 12.9%, while that of condominiums decreased 9.3%. Currently, there are 5.3 months of supply of single-family homes and 6 months of supply of condominiums in Miami-Dade, representing drops of 20.4% and 11.5% respectively. Currently, there are
12,211 active listings in Miami-Dade County.
“The current robust performance of the Miami market is not only driving prices but also creating a seller's market,” says 2013 Miami Association of Realtors Residential president Fernando I. Martinez. “Properties that are priced right are selling very rapidly and generating multiple offers. There are still good opportunities available, but buyers need to be more focused. Sellers who have been hesitant to put properties on the market should consider doing so now. More listings are definitely needed to satisfy demand.”
Strong demand for bank-owned (REO) properties and improved processing of short
sales continues to yield absorption of distressed real estate listings and to contribute to price appreciation. In January, 43.2% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 59.2% in January 2012 and 41.1% the previous month.
In Miami-Dade County, 64.7% of total closed sales in January were all-cash sales, compared to 69.8% in January 2013 and 63% the previous month. Cash sales accounted for 50.% of single-family and 75.5% of condominium closings. 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 accounted for 28% of transactions in January, down from 29% the previous month and 31% in January 2012.
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