Miami Pending Home Sales Spike 25% in November Over Last Year

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(MIAMI, FL) -- According to the Miami Association of Realtors, the total number of listings, including single-family homes and condominiums, that pended during the month of November increased 25 percent, from 2,598 in November 2010 to 3,348 last month.

In more detail, single-family home and condominium sales that pended during the month increased 43 percent and 14 percent respectively compared to the previous year. Compared to the previous month, total pended sales decreased 10 percent.

Cumulative Pending Sales

November cumulative pending home sales - including single-family homes and condominiums - in Miami-Dade County were six percent above what they were a year earlier, up from 10,437 to 11,100, and one percent below the previous month, down from 11,245.

"Miami pending home sales have consistently increased over the past couple of years," said Jack H. Levine, 2011 chairman of the board of the Miami Association of Realtors.  "We continue to see increasing pending sales, which points to increased future closed sales, price appreciation, and market strengthening."

Pending sales of condominiums were two percent higher than they were a year earlier, up from 6,173, and two percent below what they were the previous month, down from 6,466.  Pending sales of single-family homes were 11.4 percent above what they were a year earlier, up from 4,264 to 4,749, and .6 percent below the previous month, when pending single-family homes sales totaled 4,779.

"Rising pending sales typically result in increased closed transactions, which is a very encouraging trend for the Miami market," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "Stronger demand is resulting in reduced housing supply.  Currently there is under seven months of inventory in Miami-Dade County, a sign of a balanced and healthy marketplace."

Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 7.3 percent to 100.1 in November from 83.3 in October, according to the National Association of Realtors. The index is 5.9 percent higher than the 94.5 index reported in November 2010.

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.