Real Estate News | North America Residential News
Miami Finishes 2012 With Another Record-Setting Year; Outpaces 2005 'Boom Era'
By Michael Gerrity | December 21, 2012 10:46 AM ET
According to the Miami Association of Realtors, Miami home prices have increased each of the last 12 months as a result of strong demand and very tight supply.
Despite very limited inventory, Miami-Dade County residential sales surged 23 percent in November compared to a year earlier. The sales of existing condominiums in Miami-Dade increased 19.8 percent, from 1,139 to 1,365. Sales of single-family homes increased 26.2 percent, from 802 to 1,012, year-over-year.
"It appears the Miami real estate market will set another record in 2012, exceeding sales levels at the height of the boom in 2005 and during the all-time record in 2011," said 2012 Chairman of the Board of the Miami Association of Realtors Martha Pomares. "Considering the shortage of housing inventory available, it is remarkable that sales remain this strong. This record demand coupled with extremely limited supply is driving strong and consistent price appreciation."
Statewide sales of existing single-family homes totaled 17,072 in November, up 24.4 percent compared to a year ago. Statewide condominium sales totaled 8,079, down 18.3 percent from November 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 5.9 percent from November and were 14.5 percent higher than they were in November 2011, according NAR.
Evident Demand Continues to Fuel Strong Appreciation
Miami home prices rose again in November, marking 12 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 17 months, rose 31.7 percent to $158,000 compared to a year earlier. The median sales price of single-family homes rose 15.9 percent to $195,000.
In November the average sales price for condominiums in Miami-Dade County increased 22.9 percent to $285,512. The average sales price for single-family homes increased 17.4 percent to $377,918.
Florida and U.S. Home Prices
Statewide median sales prices in November increased 11.2 percent to $150,00 for single-family homes and 23.2 percent to $112,000 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 $180,600 in November, a 10.1 percent increase from November 2011, according to the National Association of Realtors (NAR).
"The Miami market's robust performance offers opportunities for both buyers and sellers," said 2012 Miami Association of Realtors Residential President Patricia Delinois. "While prices are rising, Miami remains more affordable than most U.S. markets and other world-class, global cities. Sellers are recovering significant equity lost during the downturn, resulting in greater profits."
Inventory Shortage Persists
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 19 percent, from 14,641 to 11,862. Compared to the previous month, the total inventory of homes increased 1.5 percent. Currently, there are 4.1 months of supply of single-family homes and 4.6 months of supply of condominiums in Miami-Dade. Total housing inventory nationally decreased 3.8 percent at the end of November and was 22.5 percent below year-ago levels, representing a 4.8-month supply at the current sales pace.
Median Days 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 single-family homes and 51 for condominiums, compared with historic averages of 90 to 120 days on the market. These are respectively 12.2 percent and 1.9 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 November, 43.4 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 56 percent in November 2011 and 47.4 percent the previous month. Nationally, distressed homes accounted for 22 percent of November sales, down from 24 percent in October.
Cash Sales Reflect Strong International Presence
In Miami-Dade County, 63 percent of total closed sales in November were all-cash sales, compared to 64 percent in November 2011 and 63.7 percent the previous month. Cash sales accounted for 45 percent of single-family and 75.3 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 30 percent of transactions in November, up from 29 percent the previous month; they were 28 percent in November 2011.