Miami Condo Prices Surge 40% Over Last Year, 66% All Cash Purchases Driven by Foreign Buyers

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(Miami, FL) -- For the third consecutive month, according to the Miami Association of Realtors, Miami home prices posted strong gains in February.  The median sales price of condominiums in the Miami-Dade County surged 40.4 percent to $131,950 in February compared to a year earlier. The median sales price of single-family homes rose 19 percent to $175,000.

"Miami home prices have rebounded sooner and stronger than predicted, which is a very encouraging sign for the Miami real estate market," said Martha Pomares, 2012 Chairman of the Board of the Miami Association of Realtors.  "Monthly supply of inventory has dipped below 5 months, as housing inventory continues to dwindle.  Limited supply should further strengthen home prices."

Statewide median sales prices in February increased 15.9 percent to $95,000 for condominiums and 7.2 percent to $135,000 for single-family homes, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $156,000 in February, a 0.3 percent increase from February 2011.

In February, the average sales price for single-family homes in Miami-Dade County increased 15.4 percent, from $265,440 in 2011 to $306,391 in 2012.  The average sales prices for condominiums jumped 26.3 percent, from $214,012 to $270,300.

The sales of existing single-family homes in Miami-Dade increased two percent in February, from 746 to 760, compared to February 2011.  Sales of condominiums dropped 12 percent, from 1,230 to 1,086, compared to record sales levels in February 2011.

Statewide sales of existing single-family homes totaled 14,270 in February 2012, down 4.8 percent compared to a year ago.  Statewide condominium sales totaled 7,545, down 16 percent from those sold in February 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 0.9 percent from January but were 8.8 percent higher than they were in February 2011, according to the National Association of Realtors (NAR).

"Rising prices have resulted from an all-time Miami home sales record set in 2011," said 2012 Miami Association of Realtors Residential President Patricia Delinois.  "Miami not only attracts the highest percentage of international buyers and investors, but also has become the focal point of emerging markets, as worldwide buyers and investors recognize the benefits of investing in Miami."

Inventory Declines 45 Percent Year-over-Year

From February 2011, the inventory of residential listings in Miami-Dade County has decreased 45.1 percent from 24,792 to 13,610 in February 2012.  Compared to the previous month, the total inventory of homes dropped 3.4 percent.   Total housing inventory nationally rose 4.3 percent at the end of February.

Distressed Properties

Heightened demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation.  In February, 54 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 69 percent in February 2011 and 56 percent the previous month.  Contrary to a year ago, there are now more short sales being transacted than REOs.

International Buyers Fuel Cash Sales

In Miami-Dade County, 65 percent of total closed sales in February were all-cash sales, compared to 66 percent in January and 67 percent a year earlier.  Cash sales accounted for 46 percent of single-family and 79 percent of condominium closings.  Nearly 90 percent of international buyers in Florida purchase properties all cash.  Nationally, all-cash sales were 33 percent of transactions in February, reflecting the stronger presence of international buyers in the Miami real estate market.