Last month the demand for new property in Miami continued to affect at the market for existing homes. According to a report from the Miami Association of Realtors, this was reflected in rising inventory, sales activity and prices.
In August sale prices rose for existing family homes, while the median sales price for condominiums dropped slightly. The Miami Association of Realtors have pointed out that prices are affordable as they remain at 2004 levels in spite of the 33 months of price increases for single family homes. Condominium prices have now increased for 38 consecutive months as this market began to recover long before the market for single-family homes. However prices for condominiums declined slightly in August for the first time in over three years.
According to the article in Propertywire, the median sales price for a single family home rose by 6.4%, reaching $250,000 compared to $235,000 in August last year. The average sales price for a single family home increased by 24.7%, rising from $364,960 in August 2013 to reach $455,108 in August this year. The median sales price for condominiums felt slightly by 4.2% to $182,000, compared to $190,000 in August 2013. The average sales price for condominiums in Miami decreased by 6.9% from $346,847 in August 2013 to $322,743 in August 2014.
The real estate market in Miami is continuing to recover, especially as the construction industry is gaining momentum and is generating strong demand for new homes, impacting the supply of existing condominiums. Real estate experts have pointed out that even though sales and prices of condominiums have declined, the performance of the Miami real estate market is still comparable to levels seen during periods of record sales activity.
The number of single-family homes sold in Miami-Dade County decreased by 4.4% from August 2013 to August 2014, down from 1,210 to 1,157. Condominium sales fell by 21.4% from 1,592 in August 2013 to 1,252 in August 2014. Overall the number of residential real estate sales fell by 14% from 2,802 to 2,409.
Even though these figures have dropped slightly, real estate in Miami is continuing to sell at nearly its asking price and at quite a rapid pace, reflecting strong demand for property in this area. Single family homes spent an average of 47 days on the market in August, and achieved an average of 95.4% of their listing price which is only a tiny decrease of 0.8% compared to a year earlier. Condominium spent an average of 53 days on the market and achieved an average sales price of 94.7% of the asking price, a very slight decrease of 2.6% compared to a year earlier.