Demand for Miami Real Estate Still High

Latest statistics from the Miami Association of Realtors show demand for real estate in Miami is still strong. This is in spite of an increased supply of existing and new construction homes.

During the third quarter of this year the median sales price for a home in Miami-Dade County was $250,000. This is an increase of 8.7% compared to a year earlier, while the median sales price for condominiums increased to $189,900, up 3.5% compared to last year. There has now been 11 consecutive quarters of price growth for condominiums and single-family homes, as the real estate market in Miami continues to attract foreign and domestic buyers. Even though there is a greater supply of properties compared to a year earlier, demand is still strong and prices and sales are more moderate which is resulting in a more balanced real estate market.

The median sales price for existing single-family homes in Florida for the third quarter was $182,000, an increase of 4% compared to the same quarter in 2013. The median sales price for condominiums was $139,000 which is an increase of 6.9% compared to the same quarter last year. In Miami-Dade County the average sales prices for condominiums and single-family homes increased by 3.8% and 14.9% respectively and now stand at $341,927 for condominiums and at $438,431 for single family homes.

In Miami-Dade County there were 7,632 homes and condominiums sold during the third quarter of this year, and this is a slight decrease of 5% compared to the same period last year when sales activity was at record levels. Sales of condominiums fell by 9%, but sales of single family homes rose by 0.2%.

The article in Propertywire goes on to point out that the market in Miami varies considerably according to the location of the property, the property type and its price as well as other factors. Although increased demand is offering most buyers greater choice, some are still facing bidding wars due to significant competition for certain properties. Real estate agents in the area have undertaken certain successful initiatives to try to increase inventory levels, and there have also been some more distressed properties coming onto the market.

At the moment inventory levels are at 5.7 months for single family homes, and at 8.1 months for condominiums. In a balanced market there would be between six and nine months’ supply of inventory. The median number of days single-family homes spent in the market during the third quarter was 45, compared to 37 during the third quarter last year. The median days on the market for condominium listings was 57 compared to 46 in 2013.