Miami's Record-Setting Residential Sales Pace Continued in Q4 as Prices Surged Further

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(Miami, FL) - According to the Miami Association of Realtors, Miami-Dade County residential real estate market experienced record sales activity in the fourth quarter of 2012, continuing to fuel limited housing supply and double-digit price appreciation.

Median and Average Sales Prices

The median sales price for single-family homes in Miami-Dade County rose 13.7 percent to $199,000 in the fourth quarter of 2012 compared to the third quarter of 2011, and 5.3 percent compared to the third quarter of 2012.  The median sales price for condominiums was $155,000, an increase of 27 percent year-over-year and 6.9 percent compared to the previous quarter.

"Both U.S. and international buyers continue to boost strong sales in the Miami real estate market," said 2013 Chairman of the Board of the Miami Association of Realtors Natascha Tello. "Sales growth is significant and is exceeding record levels.  We are experiencing continued growth as evidenced by high occupancy rates in Downtown Miami and by the strength of the local rental market.  Properties are not just selling; they are satisfying evident housing demand."

Year-over-year, the average sales prices for single-family homes and condominiums increased 25.9 percent to $391,446 and 25.0 percent to $302,975, respectively.

Nationally, the median sales price of existing single-family homes was $178,900 in the fourth quarter, up 10.0 percent from the fourth quarter of 2011, according to the National Association of Realtors.  The national median sales price for condominiums was $179,900, a 12.2 percent increase over the previous year.

Home Sales Exceed Record Levels

Miami-Dade residential sales - including existing single-family homes and condominiums - increased a significant 20 percent in the fourth quarter, from 6,132 to 7,365, compared to a year earlier.  Following a record-breaking year in 2011, sales in Miami continue to increase despite an inventory shortage.  In the fourth quarter, Miami sales of existing single-family homes increased 14.6 percent compared to a year earlier.  The sales of existing condominiums increased one percent compared to the third quarter of 2011.

Nationally, total existing-home sales, including single-family and condos, rose 5.0 percent to a seasonally adjusted annual rate of 4.90 million in the fourth quarter from 4.66 million in the third quarter, but were 12.1 percent above the 4.37 million pace during the fourth quarter of 2011.

"While there are typically more sales of townhouses and condominiums in Miami, we've seen a surge in single-family home sales in the fourth quarter," said 2013 Miami Association of Realtors Residential President Fernando I. Martinez.  "This increase in sales is driving greater price appreciation and depleting inventory even further for this market segment, particularly in the lower price points.  While Miami remains very affordable compared to other world-class cities and even to many other U.S. markets, there are now fewer choices in the lower price ranges."

Inventory Levels

Total housing inventory in Miami-Dade County decreased 20.4 percent year-over-year.  Fourth quarter active listings in Miami-Dade County totaled 12,822.  At the current sales pace, this reflects 5.7 months of inventory for single-family homes and 5.2 for condominiums.