Miami, FL – Residential sales continue to increase in the thriving Miami real estate market, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. General demand for Miami properties persists while supply remains limited, driving double-digit price appreciation. In March, prices for single-family homes in particular surged, reflecting even greater strengthening than seen in previous months in this market sector.
Miami home prices rose again in March, marking 16 consecutive months of appreciation for both single-family homes and condominiums. The median sales price of single-family homes surged 25.1 percent to $225,000 year-over-year and 16 percent compared to the previous month. This is the highest year-over-year percentage increase for the median sales price of single-family homes since the height of the previous real estate boom in 2005. The median sales price of condominiums, which has significantly increased each of the last 21 months, rose 19.3 percent to $167,000 compared to a year earlier and 1.2 percent compared to the previous month.
“The Miami real estate market is experiencing comprehensive strengthening fueled by robust demand and limited supply,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “The local market has seen consistent double-digit appreciation for a significant number of months while inventory declines in every price point, reflecting the demand that exists for all types of Miami properties. Current market indicators coupled with buyer trends and Miami’s worldwide appeal point to solid strengthening into the future.”
The average sales price for single-family homes in Miami-Dade County increased 16.6 percent to $389,847. The average sales price for condominiums increased 27.1 percent to $324,380.
Florida and U.S. Home Prices
Statewide median sales prices in March increased 15.2 percent to $160,000 for single-family homes and 15.9 percent to $120,000 for condominiums. The national median existing-home price for all housing types was $184,300 in March, an 11.8 percent increase from March 2012, according to the National Association of Realtors (NAR).
Miami Sales Remain Strong
Miami-Dade County residential sales increased 2.7 percent in March compared to record sales levels a year earlier. The sales of existing single-family homes in Miami-Dade increased 6.1 percent, from 963 to 1,022. Sales of existing condominiums increased 0.5 percent, from 1,451 to 1,458, year-over-year.
Statewide sales of existing single-family homes totaled 19,631 in March, up 9.0 percent compared to a year ago, according to the latest data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Statewide condominium sales totaled 9,957, up 1.1 percent from March 2012. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops declined 0.6 percent from February but remain 10.3 percent higher than they were in March 2012, according to the National Association of Realtors.
New Listings Necessary to Satisfy Demand
Active listings at the end of March dropped 5.0 percent, from 13,760, to 13,067, compared to March 2012, when the market was already experiencing a housing shortage. Inventory of single-family homes dropped 9.7 percent, while that of condominiums decreased 1.9 percent. At the current sales pace, there are 5.1 months of supply of single-family homes and 5.9 months of supply of condominiums in Miami-Dade, representing drops of 19.1 and 6.6 percent respectively compared to year-ago levels. Currently, there are 11,995 active listings in Miami-Dade County.
“After several years of market strengthening, the Miami market momentum continues,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “As a result it is now a great time to sell in Miami. Many local homeowners have recovered lost equity and can easily sell their homes, whether single-family or condominium, if priced right. Properties are selling very rapidly, yielding close to asking price and generating multiple offers.”
Total housing inventory nationally increased 1.6 percent at the end of March but remains 16.8 percent below year-ago levels, representing a 4.7-month supply.
Fewer Distressed Sales Result in Rising Prices
Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation.
Sales of distressed properties continue to decline in Miami-Dade County, as prices for both REOs and short sales also rise significantly. In March 41 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 49 percent in March 2012 and 42.2 percent the previous month. Nationally, distressed homes accounted for 21 percent of March sales.
The median sales price of single-family home and condominium foreclosures increased 10.1 percent to $144,000 and 23.6 percent to $105,000 respectively.
Cash Sales Reflect Presence of International Buyers
In Miami-Dade County, 64 percent of total closed sales in March were all-cash sales, compared to 66.4 percent in March 2012 and 66.8 percent the previous month. Cash sales accounted for 44.8 percent of single-family, a 1.3 percent increase over previous year, and 77 percent of condominium closings, a 2.6 percent decrease compared to the previous year. Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this reflects the much stronger presence of international buyers in the Miami real estate market. By comparison all-cash sales nationally accounted for 30 percent of transactions in March, down from 32 percent the previous month and 32 percent in March 2012.
Access Miami-Dade Monthly Market Statistical Reports – March 2013:
• Single Family Homes • Monthly Market Summary
http://www.miamirealtors.com/sites/miamire.com/files/stats_county_reports/2013_02/Miami-Dade_County_Single_Family_Homes_2013-03_Summary.pdf
• Townhouses and Condos • Monthly Market Summary
http://www.miamirealtors.com/sites/miamire.com/files/stats_county_reports/2013_02/Miami Dade_County_Townhouses_and_Condos_2013-03_Summary.pdf
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating 93 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S., and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is www.miamire.com.
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