Miami Pending Home Sales Explode in November, Up 52% Over Last Year

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(Miami, FL) - According to the Miami Association of Realtors and the local Miami Multiple Listing Service (MLS) system, the total number of listings, including single-family homes and condominiums, that pended in Miami-Dade County during the month of November increased 52 percent, from 2,226 to 3,374, year-over-year even though it was 19.1 percent less than the previous month. The number of single-family and condominium listings that pended in November increased 73.8 percent and 37.4 percent respectively compared to November 2011.

"The Miami real estate market continues to perform robustly as it approaches a new sales record and exceeds one full year of significant price appreciation," said Martha Pomares, 2012 chairman of the board of the Miami Association of Realtors. "Strong market fundamentals in Miami offer sound and profitable investment opportunities.  Population drives real estate, and Miami continues to grow as a result of net U.S. migration, trade, business enterprises, tourism and second and vacation home buying activity."

Inventory shortage remains a problem for the Miami market, as the number of active listings drops year-over-year below what is considered a balanced market.  While new listings are coming on the market, more inventory is needed to satisfy demand.

In November, 1,581 single-family homes and 2,382 condominiums were listed, reflecting a 3.1 percent decrease and 1.3 percent increase respectively when compared to November 2011.

"Homeowners who have been waiting to sell should sell now," said 2012 Miami Association of Realtors Residential President Patricia Delinois. "Record demand is evident for Miami properties, creating an advantage for sellers.  Therefore, when a home is priced right, it sells fast."

Sellers Offering Few Discounts

Limited supply coupled with rising demand is yielding offers that are increasingly closer to asking price, as sellers offer fewer discounts.  In November, single-family home and condominium sales received 93.7 percent and 96.2 percent respectively of the original list price, compared to 91.9 percent and 93.3 percent in November 2011.  The increase in percent of original list price received is an indication that rising demand is absorbing inventory more rapidly.

Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.2 percent to 104.8 in October from 99.6 in September, according to the National Association of Realtors. The index is 13.2 percent higher than the 92.6 index reported in October 2011.

Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.