Miami Residential Prices Up 8.7 Percent Over Last Year in Q3

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According to the Miami Association of Realtors, Miami's residential real estate market remains consistent with record activity in 2013 due to strong demand, despite increased existing and new construction housing supply.

Median and Average Sales Prices Continue to Rise

In the third quarter, the median sales price for homes in Miami-Dade County was $250,000, an increase of 8.7 percent compared to last year.  The median sale price for condominiums rose 3.5 percent to $189,900 in the third quarter compared to a year earlier. Third quarter price increases mark 11 consecutive quarters of growth for both single-family homes and condominiums.

"The Miami real estate market continues to attract the attention of both domestic and foreign buyers, fueling solid growth and creating opportunities for both buyers and sellers," said 2014 Chairman of the Board of the Miami Association of Realtors Liza Mendez.  "While there is more supply available than a year ago, there is still strong demand, and the growth of supply, new listings, sales and prices is more moderate, resulting in a more balanced market."

Nationally, the median sales price of existing single-family homes was $217,300 in the third quarter, up 4.9 percent from the third quarter of 2012.  The national median sales price for condominiums was $211,000, a 2.7 percent increase over the previous year.

The statewide median sales price for single-family existing homes in the third quarter was $182,000, up 4.0 percent from the same quarter a year ago, according to the latest housing data released by Florida Realtor. The median sales price for condominiums in Florida was up 6.9 percent compared to the same quarter last year at $139,000.

Compared to last year, the average sales prices for single-family homes and condominiums in Miami-Dade County increased 14.9 percent to $438,431 and 3.8 percent to $341,927, respectively.

Sales Continue to Rise for Single-Family Homes

There were 7,632 homes and condos sold in Miami-Dade County during the third quarter of 2014, a negligible decrease of 5.0 percent compared to the third quarter of 2013, when there was record sales activity.  Sales of single-family homes increased 0.2 percent to 3,552, while condominium sales decreased 9.0 percent to 4,080 compared with the same period in 2013.

"In Miami, market performance continues to vary greatly depending on location, property type, price range and other factors," said 2014 Miami Association of Realtors Residential President Francisco Angulo.  "While in most cases, increased supply is offering buyers more choices and less pressure, others are still experiencing significant competition and bidding wars."

Nationally, total existing-home sales, including single-family and condos, increased 5.2 percent to a seasonally adjusted annual rate of 5.12 million in the third quarter from 4.87 million in the second quarter of 2013, but were still 3.8 percent below the 5.32 million pace during the third quarter of 2013, according to the National Association of Realtors.

Statewide closed sales of existing single-family homes totaled 64,633 in the third quarter, up 7.6 percent compared to the year-ago figures.  Closed sales of condominiums totaled 26,506, down 4.6 percent compared to 2013.

Home Inventory Moving Rapidly Despite More New Listings

The Miami Association's initiatives to increase inventory and focus on assisting members to get more listings has proven successful along with some additional distressed properties coming on the market.  The fact that sales remain at historically strong levels while inventory is growing points to seller confidence.  Sellers are listing properties for sale because they have confidence in the market.

Home and condominium listings also increased in the second quarter but by narrower margins. There were 6,237 new single-family home listings during the third quarter, a growth of 5.1 percent relative to the same period last year. New condominium listings increased by only 1.0 percent from 8,282 in the third quarter of 2013 to 8,366 this year.

Third quarter active listings in Miami-Dade County totaled 17,480, representing an increase of 22.5 percent.  This reflects the success of the Miami campaign to achieve a more balanced market between buyers and sellers.  At the current sales pace, current inventory represents 5.7 months of inventory for single-family homes and 8.1 for condominiums.  Compared to the third quarter of 2013, months supply of inventory for single-family homes and condominiums increased 13.5 percent and 33.6 percent respectively.  A balanced market between buyers and sellers offers between six and nine months supply of inventory.

The median days on the market of single-family home listings during the third quarter was 45 days compared to 37 days during the same period last year, an increase of 21.6 percent. Similarly, the median days on the market for condominium listings were 57 days compared to 46 last year, an increase of 23.9 percent.

Percentage of Cash Sales Declines

In the third quarter, 55 percent of closed sales were all cash compared to 59.2 percent a year ago.  All cash sales were 40.4 percent of single-family home closings and 67.5 percent of all condominium sales.  Since nearly 90 percent of foreign buyers pay cash, this reflects Miami's position as a top market for foreign buyers.  Miami has a significant percentage of international buyers, generating more than double the cash transactions than the national average.

New Construction Market Update

Strong sales in the coastal new construction condominium Miami market (east of I-95) reflect significant demand for new properties, according to the latest New Construction Market Status Report released today by Cranespotters.com.

At the end of the third quarter, there were seven (7) towers that had been completed in 2014 in Miami-Dade County east of I-95, 55 under construction, and 60 are planned but have not begun development.  There are also 66 towers that have been announced but not approved.

Of the above projects in Miami-Dade:

• 82 projects with 96 towers comprising 14,690 units are currently selling
• Since 2011, 65 percent or 9,478 units have been sold
• The mean price per square foot of these units is $850, compared to $844 last month