Demand for property in Miami is continuing to increase, due to international and domestic buyers and investors. A recent analysis from the Miami Association of Realtors shows that the increased supply is still insufficient to meet demand, especially for homes in lower price brackets.
According to the article in Propertywire, the number of active listings in Miami-Dade County for the second quarter reached 13,151. This represents 4.9 months of inventory for single-family homes, and 5.8 months for condominiums. Compared to the same period last year, inventory for single-family homes has fallen by 15.9%, but it’s increased by 2.6% for condominiums.
During the second quarter the median sales price for condominiums in Miami-Dade County was $180,000. This is an increase of 11% compared to the previous quarter, and an increase of 18.4% year on year. The median sales price for single family homes increased by 21% in the second quarter compared to the same period last year, to reach $205,650. Prices increased by 9.4% when compared to the first quarter of this year. Over the past year, the average sales price for condominiums and single-family homes increased by 14.9% and 14.2% respectively. The average sale price for condominiums now stands at $352,246, while for single-family homes the average sales price is $446,289.
The last two years in the Miami real estate market have been record-breaking, and it looks as if 2013 will follow a similar pattern. The number of residential sales of condominiums and single-family homes in Miami-Dade County rose by 13.6% in the second quarter compared to the same period last year, increasing from 7,228 to reach 8,214. Sales rose by 27.2% compared to the previous quarter. During the second quarter of the year sales of existing family homes rose by 19.5% compared to 12 months ago, while sales of existing condominiums increased by 8.9% compared to the second quarter last year.
Apparently sales activity throughout Miami-Dade County is robust across all price ranges, with the one exception being property costing less than $100,000. This end of the market is seeing fewer sales due to a low inventory. As prices begin to recover there are fewer new listings in the lower price brackets. Properties that are priced correctly are selling very quickly, with some receiving multiple offers. During the second quarter of 2013, 62.6% of closed sales were conducted in cash, compared to 65% last year. Cash sales accounted for 75.8% of condominium sales, and 44.7% of single-family home sales. These high figures reflect the fact that 90% of foreigners pay for their homes in cash.