Miami Home Prices Continue to Rise

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The median sale price of a Miami condominium in August was 27.5 percent higher than a year earlier, after a 5.3 percent increase from July, according to data released today by the Miami Association of Realtors.

Overall median prices have increased for 21 consecutive months, MAR reports.

The median sales price of a single family home is now $235,000, 20.5 percent higher than a year earlier and 2.2 percent above July. The median price for a condo rose to $180,500.

Sales prices now stand at 2004 levels, about 35 percent below peak levels, MAR reports.

Sales activity is also picking up, with the number of single family home sales up 15.1 percent from August 2012 and condo sales 7.9 percent higher than a year ago.

"The Miami real estate market continues to attract record numbers of domestic and international buyers and investors," Miami Association of Realtors chairwoman Natascha Tello said in a statement. "Such demand for Miami properties is driving robust price appreciation despite the fact that more properties are being listed for sale. Current levels of supply reflect a seller's market, as more consumers are realizing it's a good time to sell."

The Miami market is also reporting off plan/pre-construction sales, which is fueling new development.

More excerpts from the latest report:

• In August, the median days on the market for single-family homes and condominiums was 35 and 46 respectively. The average percent of original list price received was 96.2 percent for single-family homes and 97.2 percent for condominiums.

• Active listings at the end of August increased 3.1 percent, from 12,445 to 13,763, compared to August 2012. Inventory of single-family homes increased 3.1 percent to 5,220 active listings, while the volume of condominiums increased 15.7 percent to 8,543 active listings.

• At the current sales pace, there is 4.9 months of supply of single-family homes and 6.0 months of supply of condominiums in Miami-Dade, representing a decrease of 12.7 percent and an increase of 7.6 percent respectively compared to year-ago levels.

• Sales of distressed properties continue to sharply decline in Miami-Dade County. In August, only 36 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 45 percent in August 2012. Nationally, distressed homes again accounted for 12 percent of August sales.

• The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 19.2 percent to $155,000 and 24.7 percent to $112,250 respectively.

• In Miami-Dade County, 57.2 percent of total closed sales in August were all-cash sales compared to 63.9 percent in August 2012. All-cash sales accounted for 43.8 percent of single-family home and 67.6 percent of condominium closings, compared to a year ago when cash sales were 44.8 percent and 77.4 percent of closed sales respectively. 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 32 percent of transactions in August, up from 31 percent the previous month and 27 percent in August 2012.