Miami Real Estate Market Continues Winning Streak in November, Prices Rise Fourth Consecutive Month

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(MIAMI, FL) -- Today the Miami Association of Realtors reported that sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 11 percent in November, from 679 to 755, compared to November 2010. Sales of existing condominiums increased 2 percent, from 1,039 to 1,064, compared to November 2010.

Statewide sales increased 11 percent to 12,993 for single-family homes and two percent to 5,590 for condominiums compared to November 2010.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose four percent from the previous month and were 12.2 percent above November 2010, according to the National Association of Realtors (NAR).

"Residential real estate sales have consistently risen in Miami-Dade since August 2008," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "Now, after the relatively rapid absorption of excess housing inventory, we are seeing property prices follow the same pattern. This is very encouraging and reflects market strengthening despite the impediments posed by unnecessary and restrictive mortgage underwriting standards and appraisal challenges."

International Buyers Fuel Cash Transactions

The percentage of cash transactions remained the same at 64 percent, compared to the previous month. Cash sales accounted for 41 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 accounted for 28 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.

Condominium Prices Rise Again

The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county.  In November, 56 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 62 percent in November 2010 and 57 percent the previous month.

In November, the median sales price for condominiums rose for the fourth consecutive month.  The median sales price of condominiums in November increased 18 percent to $125,000. The median sales price of single-family homes remained the same at $171,300 compared to a year earlier.

"The Miami residential real estate market continues to perform in a healthy and balanced manner, said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "International buyers in Miami have fueled an unprecedented recovery unlike any other in the nation, increasing demand and limiting supply of homes.  We are fortunate because Miami combines all of the attributes that are expected to attract international buyers long into the future."

Statewide median sales prices remained the same at $130,100 for single-family homes and increased four percent to $86,700 for condominiums.  The national median existing-home price for all housing types was $164,200 in November, down 3.5 percent from November 2010.

The average sales prices for single-family homes in Miami-Dade County increased 8.2 percent, from $300,369 in November 2010 to $324,846 in November 2011. The average sales price for condominiums increased 21.5 percent, from $193,486 in November 2010 to $226,151 last month.

Inventory Drops 40 Percent in Last Year

The inventory of residential listings in Miami-Dade County has dropped 40 percent, from 24,278 to 14,461 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped 4.4 percent from 15,127.  Since August 2008, existing housing inventory has decreased more than 66 percent, down from 43,100.

Total housing inventory nationally fell 5.8 percent to 2.58 million at the end of November compared to the previous month.