Miami Real Estate Performing Well While Inventory Declines
The residential real estate market of the Miami-Dade County showed growth during the first quarter. This was a result of increased demand and limited supply of properties especially in the affordable end of the market, according to the MIAMI Association of REALTORS and the Multiple Listing Service (MLS) systems.
The median sales price for condominiums in the area increased by 24.6 percent year-over-year ending in $162,000. This was 4.5 percent higher than the data from the previous quarter. As for the single-family homes, reports showed that the properties grew by as much as 17.5 percent to $205,650 during the first quarter.
The great demand for real estate properties in the Miami-Dade County coupled with limited supply created an atmosphere that resulted in significant strengthening of the market. According to Natascha Tello of the MIAMI Association of REALTORS, “the trend continues to fuel double-digit price appreciation, countrywide prices remain 2003 levels.” Due to this, the Miami-Dade County homes are seen as more attractive than those found in other markets in the U.S. owing to their comparative affordability. The price and the lifestyle offered at Miami attracted several local and foreign buyers and investors.
A 14.8 percent to $364,991 and 20.2 percent to $307,934 increase was also reported for the average sales price of single-family homes and condominiums, respectively.
During the first quarter the median sales price of single-family homes was $176,000. This was an 11.3 percent increase from the first quarter of last year. For condominiums, a 10.4 percent increase to $172,000 was reported. Statewide, the median sales price for condominiums was up 18.4 percent while 13.4 percent for single-family homes.
2013 MIAMI Association of REALTORS Residential President Fernando Martinez asserted that the market is becoming more attractive for sellers due to fast sales and correct pricing. This further resulted to a bidding war typically ending with an offer above the asking price. However, while the increase in sales was evident, the inventory of affordable homes greatly decreased. The sharp decline in available properties is affecting the sales of more affordable homes.
To wit: The housing inventory in the Miami-Dade County declined by 5 percent year-over-year. During the first quarter, there were 13,067 active listings in the area. The inventory is expected to last for 5.1 months and 5.9 months for single-family homes and condominiums, respectively, given the current pace of the sales.
The inventory of single-family homes in the Miami-Dade County listed below $200,000 experienced the greatest dip in numbers. In this price range, the inventory declined by 38.8 percent. For those listed at $600,000 or more, the inventory for single-family homes increased by 38.7 percent. The greatest decrease in percentage, however, was for properties listed between $50,000 and $149,999. The inventory of properties in the price range declined by 43.6 percent. For luxury homes listed for $1 million or more, the available inventory increased by 41.5 percent.
As for the condominiums, those listed under $200,000 declined by 33 percent while a 31 percent increase was reported for condos listed for $600,000 or higher. The greatest decrease was for those listed at $50,000 or less, declining by as much as 70.8 percent. Properties in the price range of $400,000 to $599,999 experienced the greatest increase by 44 percent.
The sales of residential properties in the Miami-Dade area increased by 4.6 percent during the first quarter compared to last year. Despite the continued decline in available homes, the sales of homes in Miami continue to break records. Again during the first quarter, sales of single-family homes increased by 10 percent while a two percent increase were reported for condominiums.
In Florida, the closed sales of single-family homes totaled to 48,976, which was up by 10.2 percent from last year. Close condominium sales amounted to 24,655, a 3.2 percent increase from the previous year.
The sales of properties, both single-family and condos, in the country rose by 0.8 percent, adjusted for the season’s annual rate of 4.94 million during the first quarter.
65 percent of the closed sales during the first quarter were made with cash. The cash sales of single-family homes was 47.9 percent while 76.9 percent for condominium sales. Many of the buyers in the Miami market are foreigners. This further reflects the city’s reputation as an excellent market for foreign buyers and investors.
The following at the Miami-Dade Statistical Reports during the first quarter: