Miami Real Estate Continues Robust Performance in First Quarter
Affordable Inventory Sharply Declining
This article appeared in The Miami Herald – International Edition on May 22, 2013
The Miami-Dade County residential real estate market again experienced significant strengthening in the first quarter, as a result strong demand and limited supply particularly in the lower price points, according to the 27,000-member MIAMI Association of REALTORS® and the local Multiple Listing Service (MLS) systems.
Median & Average Sales Prices
In the first quarter, the median sales price for condominiums in Miami-Dade County was $162,000, an increase of 24.6 percent year-over-year and 4.5 percent compared to the previous quarter. The median sales price for single-family homes rose 17.5 percent to $205,650 in the first quarter compared to the first quarter of 2012, and 3.3 percent compared to the first quarter of 2012.
“The Miami real estate market is experiencing significant strengthening as we continue to see greater demand than supply,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS® Natascha Tello. “While this trend continues to fuel double-digit price appreciation, countywide prices remain at 2003 levels, which makes our properties affordable compared to many markets in the U.S. and even to other world-class cities on a global level. Miami prices coupled with the local lifestyle and amenities is attracting both U.S. and international buyers and investors.”
Year-over-year, the average sales prices for single-family homes and condominiums increased 14.8 percent to $364,991 and 20.2 percent to $307,934, respectively.
Nationally, the median sales price of existing single-family homes was $176,600 in the first quarter, up 11.3 percent from the first quarter of 2012, according to the National Association of Realtors. The national median sales price for condominiums was $172,400, a 10.4 percent increase over the previous year.
Lawrence Yun, NAR chief economist, said many areas are experiencing a seller’s market. “The supply/demand balance is clearly tilted toward sellers in a good portion of the country,” he said. “Inventory conditions are expected to remain fairly constrained this year, so overall price increases should be well above the historic gain of one-to-two percentage points above the rate of inflation. If home builders can continue to ramp up production, then home price growth is expected to moderate in 2014.”
The statewide median sales price for single-family homes increased 13.4 percent to $153,000 in the first quarter, according to data from Florida REALTORS® Industry Data and Analysis department in partnership with local REALTOR® boards/associations. The median sales price for condominiums in Florida was up 18.4 percent compared to the same quarter last year at $116,000.
“The Miami real estate market is increasingly becoming more attractive for sellers, as properties sell rapidly when priced right,” said 2013 MIAMI Association of REALTORS® Residential President Fernando I. Martinez. “Strong demand is resulting in multiple offers even above asking price, and we are seeing greater increases for sales in the higher price points, while inventory in the lower price points has greatly declined. This reflects the fact that limited supply is hampering sales for more affordable properties.”
Inventory Levels in Lower Price Points Continue to Decline
Total housing inventory in Miami-Dade County decreased another five percent year-over-year. First quarter active listings in Miami-Dade County totaled 13,067. At the current sales pace, this reflects 5.1 months of inventory for single-family homes and 5.9 for condominiums.
In the first quarter Miami-Dade inventory of single-family homes listed under $200,000 saw the greatest percentage decreases. Available inventory in this range dropped 38.8 percent, from 2,677 to 1,636, compared to year-ago levels. Inventory of single-family homes listed at $600,000 or greater, rose 38.7 percent. The greatest percentage decrease, 43.6 percent, was for properties listed between $50,000 and $149,999, while the greatest percentage increase, 41.5 percent, was for homes listed at $1 million or more.
Condominium inventory of active listings dropped 33 percent for properties listed under $200,000 and increased 31 percent for properties listed at $600,000 or higher. The greatest percentage decrease, 70.8 percent, was for condominium inventory listed at $50,000 or less, while the greatest percentage increase, 44 percent, was for properties listed between $400,000 and $599,999. Sellers are becoming more aware of the attractiveness of the market.
Home Sales Exceed Record Levels
Miami-Dade residential sales – including existing single-family homes and condominiums – increased 4.6 percent in the first quarter, from 6,174 to 6,457, compared to a year earlier. Following two consecutive record-breaking years, sales in Miami continue to increase despite an inventory shortage. In the first quarter, Miami sales of existing single-family homes increased 10 percent compared to a year earlier. The sales of existing condominiums increased two percent compared to the first quarter of 2012.
Statewide closed sales of existing single-family homes totaled 48,976 in the first quarter, up 10.2 percent compared to the year-ago figure. Closed sales of condominiums totaled 24,655, up 3.2 percent compared to 2012.
Nationally, total existing-home sales, including single-family and condos, rose 0.8 percent to a seasonally adjusted annual rate of 4.94 million in the first quarter from 4.90 million in the fourth quarter, but were 9.8 percent above the 4.50 million pace during the first quarter of 2012.
Majority of Sales All Cash
In the first quarter, 65 percent of all closed sales were all cash compared to 66 percent a year ago. All cash sales were 47.9 percent of single-family home closings and 76.9 percent of all condominium sales. Since nearly 90 percent of foreign buyers pay cash, this reflects Miami’s position as a top market for foreign buyers.
Source: Miami Association of Realtors (miamire.com)
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