Real Estate News | North America Residential News
Demand for Miami Real Estate Intensifies Further in October as Pending Sales Spike 67% Over Last Year
By Michael Gerrity | November 29, 2012 12:36 PM ET
(Miami, FL) - According to the Miami Association of Realtors, the total number of Miami MLS listings, including single-family homes and condominiums, that pended in Miami-Dade County during the month of October increased 67 percent, from 2,488 to 4,172, year-over-year and 18 percent compared to the previous month. The number of single-family and condominium listings that pended in October increased 85 percent and 55.7 percent respectively compared to October 2011.
"The Miami real estate market is poised for another record year, that would surpass the all-time sales record set in 2011," said Martha Pomares, 2012 chairman of the board of the Miami Association of Realtors. "Strong demand persists despite the shortage of housing inventory, and listings are increasingly selling at a more rapid pace, driving in significant price appreciation."
Current market performance presents opportunities for both buyers and sellers, as prices are rising but still remain affordable. While prices are increasing, Miami remains more affordable than most U.S. markets when comparing monthly mortgage payments to income.
"Since we have experienced double-digit appreciation for nearly a year, many homeowners have recovered equity lost during the market downturn and can now make a profit when they sell," said 2012 Miami Association of Realtors President Patricia Delinois. "Buyers, on the other hand, benefit from historically low prices. Despite the strengthening prices, the median sales price in Miami-Dade is approximately what it was in 2002. When you compare Miami to other world-class cities and even to markets with fewer amenities and less desirable lifestyles, local properties are quite a bargain."
Sellers Offering Few Discounts
Limited supply coupled with rising demand is yielding offers that are increasingly closer to asking price, as sellers offer fewer discounts. In October, single-family home and condominium sales received 95 percent and 97.1 percent respectively of the original list price, compared to 91 percent and 93.6 percent in October 2011. The increase in percent of original list price received indicates rising demand is absorbing inventory more rapidly.
Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.2 percent to 104.8 in October from 99.6 in September, according to the National Association of Realtors. The index is 13.2 percent higher than the 92.6 index reported in October 2011.
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.