Miami Housing Inventory Shortage a Reality as Sales, Prices Continue to Rise

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(Miami, FL) -- According to the Miami Association of Realtors, Miami home prices rose again in August, marking nine consecutive months of appreciation.

The median sales price of Miami-Dade condominiums, which has increased each of the last 14 months, increased 28.4 percent to $146,500 compared to a year earlier. The median sales price of single-family homes rose 10.8 percent to $195,000.

"Despite the shortage of housing inventory, Miami home sales remain strong and continue to drive significant price appreciation," said 2012 Chairman of the Board of the Miami Association of Realtors Martha Pomares. "There is evident demand for Miami properties, particularly from foreign buyers and investors who recognize Miami's desirability and profitability. Miami remains the top market for foreign buyers in the nation, and local international activity continues to grow."

In August the average sales price for condominiums in Miami-Dade County increased 20.9 percent to $283,497. The average sales prices for single-family homes increased 28.4 percent to $408,810.

Florida Statewide Home Prices

Statewide median sales prices in August increased 5.8 percent to $147,000 for single-family homes and 13.2 percent to $102,980 for condominiums, 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 $187,400 in August, a 9.5 percent increase from August 2011, according to the National Association of Realtors (NAR).

Miami Home Sales Rise Again in August

Total residential sales in Miami-Dade County increased 7.0 percent compared to a year earlier, compared to record sales levels in August 2011. The sales of existing condominiums in Miami-Dade increased 8.0 percent, from 1,382 to 1,492. Sales of single-family homes increased 5.0 percent, from 1,009 to 1,059, year-over-year.

Statewide sales of existing single-family homes totaled 18,669 in August 2012, up 10.8 percent compared to a year ago. Statewide condominium sales totaled 8,767, up 5.7 percent from those sold in August 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 7.8 percent from July and were 9.3 percent higher than they were in August 2011, according NAR.

"Miami is experiencing a mini-boom fueled mostly by demand from international buyers but also by population growth resulting from migration from other states, baby boomers, and local consumers," said 2012 Miami Association of Realtors Residential President Patricia Delinois. "Miami's firm position as a major global city is expected to continue to draw demand long into the future, as businesses, residents, visitors and tourists, investors, and vacation and second homebuyers take advantage of all that our vibrant and unique city has to offer."

Shortage of Housing Inventory in Miami-Dade

Over the last year, the inventory of residential listings in Miami-Dade County has dropped 26 percent from 15,405 to 11,431. Compared to the previous month, the total inventory of homes decreased 0.2 percent. Currently, there are 4.2 months of supply in Miami-Dade. Total housing inventory nationally increased 2.9 percent at the end of August and was 18.2 percent below year-ago levels, which represents an 8.2-month supply at the current sales pace.

Distressed Sales Decrease

Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation. In August, 45.8 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 56 percent in August 2011 and 47 percent the previous month. Nationally, distressed sales accounted for 22 percent of August sales.

Cash Sales Reflect Strong International Presence

In Miami-Dade County, 64 percent of total closed sales in August were all-cash sales, compared to 62 percent in August 2011 and 64 percent the previous month. Cash sales accounted for 45 percent of single-family and 78 percent of condominium closings. Nearly 90 percent of foreign buyers in Florida purchase properties all cash. Reflecting the stronger presence of international buyers in the Miami real estate market, all-cash sales nationally were unchanged from the previous month at 27 percent of transactions in August; they were 29 percent in August 2011.