Miami, FL – The Miami real estate market continues to strengthen as a result of record demand, fueled by both domestic and international buyers and investors, as increased supply remains insufficient to satisfy demand, according to the 29,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.
Inventory Levels in Lower Price Points Continue to Decline
Second quarter active listings in Miami-Dade County totaled 13,151. At the current sales pace, this reflects 4.9 months of inventory for single-family homes and 5.8 for condominiums. Months supply of inventory declined 15.9 percent for single-family homes and increased 2.6 percent for condominiums compared to the second quarter of 2012.
“The Miami real estate market continues to attract significant demand from both domestic and international buyers and investors,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “Second quarter statistics reflect a strengthening market with limited supply, surging sales, and a majority of cash transactions, mostly as a result of the presence of foreign buyers in Miami from worldwide markets.”
In the second quarter, inventory of single-family homes decreased 3.1 percent with the greatest percentage decreases occurring for properties listed under $200,000.
In Miami-Dade, condominium inventory increased 2.6 percent in the second quarter. For condos only inventory listed below $200,000 decreased, with properties listed below $50,000 declining a significant 63.5 percent and listings between $50,000 and $100,000 decreasing 37.6 percent.
Median and Average Sales Prices
In the second quarter, the median sales price for condominiums in Miami-Dade County was $180,000, an increase of 18.4 percent year-over-year and 11 percent compared to the previous quarter. The median sales price for single-family homes rose 21 percent to $205,650 in the second quarter compared to the second quarter of 2012, and 9.4 percent compared to the first quarter of 2013.
Year-over-year, the average sales prices for single-family homes and condominiums increased 14.2 percent to $446,289 and 14.9 percent to $352,246, respectively.
Nationally, the median sales price of existing single-family homes was $203,500 in the second quarter, up 12.2 percent from the second quarter of 2012, according to the National Association of Realtors. The national median sales price for condominiums was $199,700, a 12.2 percent increase over the previous year. The statewide median sales price for single-family existing homes in the second quarter was $170,000, up 14.1 percent from the same quarter a year ago. The median sales price for condominiums in Florida was up 16.7 percent compared to the same quarter last year at $129,000.
Home Sales Continue to Exceed Record Levels
Following two consecutive record-breaking years, the Miami real estate market appears to be headed towards another record year. Miami-Dade residential sales – including existing single-family homes and condominiums – spiked 13.6 percent in the second quarter, from 7,228 to 8,214, compared to a year earlier and 27.2 percent compared to the previous quarter. In the second quarter, Miami sales of existing single-family homes increased 19.5 percent compared to a year earlier. The sales of existing condominiums increased 8.9 percent compared to the second quarter of 2012.
“We are experiencing robust sales activity throughout Miami-Dade County and in all price ranges except for properties listed under $100,000,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “The low end of the market is seeing decreased sales due to a depletion of inventory. As our prices recover, we are also seeing fewer new listings in the lowest price points. In this seller’s market, properties that are priced right are selling very rapidly and generating multiple offers.”
Statewide closed sales of existing single-family homes totaled 63,173 in the second quarter, up 14.7 percent compared to the year-ago figure. Closed sales of condominiums totaled 31,829, up 7.9 percent compared to 2012.
Nationally, total existing-home sales, including single-family and condos, rose 2.4 percent to a seasonally adjusted annual rate of 5.06 million in the second quarter from 4.94 million in the first quarter, but were 12.3 percent above the 4.51 million pace during the second quarter of 2012.
Majority of Sales All Cash
In the second quarter, 62.6 percent of all closed sales were all cash compared to 65 percent a year ago. All cash sales were 44.7 percent of single-family home closings and 75.8 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.
2Q Miami-Dade Statistical Reports
Note: Statistics in this news release may vary depending on reporting dates. 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 29,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is www.miamirealtors.com.