Home sales in Miami fell by 9.2% last month, after seeing two months of significant growth. In spite of the drop in sales, prices are still increasing although at a slower rate than before.
The data from the Miami Association of Realtors shows that demand for certain properties in Miami is beginning to fall, in spite of the fact that this is one area in the US that has led the housing recovery. According to the article in Propertywire, sales of single family homes fell by just 1% compared to a year earlier, but sales of condos dropped by 15.5%. When combined, sales were down by 9.2%. However real estate experts are keen to point out that more moderate growth reflects a more balanced market between buyers and sellers, and that sales still remain strong in Miami even when compared to the record levels of sales activity seen during the past three years.
Even though prices of single family homes increased in November year on year, they are still at affordable 2004 levels, in spite of three years of price growth. Prices of condos also rose in November and have showed growth in 41 out of the last 42 months. In November 2014 the median sales price for a single family home increased by 5.4% from $232,000 to $245,000 compared to a year earlier. The average sales price rose from $366,309 in November last year to $395,786 in November 2014. The median sales price for condominiums rose by 5.4% from $180,000 in November 2013 to $189,777 in November 2014. The average sales price of a condominium rose by 11.9% from $311,323 in November 2013 to $348,290 for November 2014.
The figures also show that property in Miami is continuing to sell quickly and for nearly the asking price showing demand is still strong. An average single-family home took a median of 47 days to sell in November and achieved an average of 93.9% of the original list price, down by just 2.3% compared to a year earlier. A condominium spent a median of 57 days on the market in November and also achieved an average of 93.9% of the original asking price. The number of cash sales is continuing to fall, and this apparently is due to easier access to finance. In spite of this, availability of mortgage loans for condominium buyers is still limited which is preventing the market from strengthening.