Real Estate News | North America Residential News
Miami Home Sellers Enjoying Significant Price Increases in September as Inventory Shortage Continues
By Michael Gerrity | October 22, 2012 8:00 AM ET
(Miami, FL) - According to Miami Association of Realtors, Miami home prices rose again in September, marking 10 consecutive months of appreciation.
The median sales price of Miami-Dade condominiums, which has increased each of the last 15 months, rose 36.2 percent to $150,000 compared to a year earlier. The median sales price of single-family homes rose 8.6 percent to $190,000.
"The Miami real estate market continues to strengthen despite the shortage of housing inventory," said 2012 Chairman of the Board of the Miami Association of Realtors Martha Pomares. "We've seen nearly an entire year of significant monthly price increases, which makes now a great time to sell a home. Miami properties sell very quickly and draw multiple offers when priced right."
In September the average sales price for condominiums in Miami-Dade County increased 30.2 percent to $277,774. The average sales price for single-family homes decreased 6.1 percent to $315,521.
Florida Statewide Home Prices
Statewide median sales prices in September increased 7.4 percent to $145,000 for single-family homes and 18.8 percent to $105,376 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $183,900 in September, an 11.3 percent increase from September 2011, according to the National Association of Realtors (NAR).
Miami Home Sales Rise Again in September
Total residential sales in Miami-Dade County decreased a negligible 3.4 percent compared to a year earlier when the local market experienced record sales levels. The sales of existing condominiums in Miami-Dade decreased 6.7 percent, from 1,395 to 1,302. Sales of single-family homes increased 1.6 percent, from 903 to 917, year-over-year.
Statewide sales of existing single-family homes totaled 15,643 in September, up two percent compared to a year ago. Statewide condominium sales totaled 7,329, down 2.9 percent from September 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops fell 1.7 percent from August but were 11 percent higher than they were in September 2011, according NAR.
"International buyers continue to play a pivotal role in strengthening the Miami real estate market and the local economy," said 2012 Miami Association of Realtors Residential President Patricia Delinois. "Miami's market share of international purchases in Florida continues to increase, reflecting its strong position as the top market for foreign buyers and investors and benefiting our businesses and our residents. Miami now accounts for 31 percent of all international sales in the entire State of Florida, up more than 10 percent compared to NAR's 2011 Florida study."
Inventory Supply Continues to Dwindle
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 24 percent from 15,264 to 11,595. Compared to the previous month, the total inventory of homes decreased 1.4 percent. Currently, there are 4.3 months of supply in Miami-Dade. Total housing inventory nationally decreased 3.3 percent at the end of September and was 20 percent below year-ago levels, representing a 5.9-month supply at the current sales pace.
Median Day on the Market
Properties are selling much more rapidly in the current market than they did a year ago. The current median days on the market is only 43 for both single-family homes and condominiums, compared with historic averages of 90 to 120 days on the market. These are respectively 14 and 24.6 percent decreases year-over-year. Nationally, the median time on the market was 70 days.
Distressed Sales Decrease
Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation. In September, 47.4 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 59 percent in September 2011 and 45.8 percent the previous month. Nationally, distressed sales accounted for 24 percent of September sales, up from 22 percent in August and down from 30 percent in September 2011.
Cash Sales Reflect Strong International Presence
In Miami-Dade County, 62.4 percent of total closed sales in September were all-cash sales, compared to 62 percent in September 2011 and 64 percent the previous month. Cash sales accounted for 43 percent of single-family and 76 percent of condominium closings. Nearly 90 percent 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 percent of transactions in September, up from 27 percent the previous month and down from 30 percent in September 2011.