Miami Enjoys Record-Breaking Home Sales in 2014

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According to the Miami Association of Realtors, Miami home sales increased in December 2014, as single-family home sales set an all-time annual record in 2014 and median sales prices continue to increase at a more moderate rate.
 
Sales Increase for Single-family Homes, Decline for Condos

Year-end sales of single-family home sales in 2014 set an all-time record, increasing 4.8 percent to 13,521 compared to 12,899 the previous year.  Condominium sales in 2014 were the second highest in history, decreasing 4.3 percent to 16,409 compared to 17,142 the previous year.  Combined sales for the year decreased a negligible 0.4 percent.

Single-family home sales in Miami-Dade County increased 9.6 percent relative to December 2013, from 1,140 to 1,250. Condominium sales decreased 2.1 percent from 1,426 the previous year to 1,396 last month. Combined, residential real estate sales increased 3.0 percent to 2,646 compared to 2,566 in December of last year.

"The Miami real estate market again reflected great demand in 2014," said 2015 Residential President of the Miami Association of Realtors Christopher Zoller. "More single-family homes were sold in Miami-Dade County than ever in history, while condominium sales marked their second strongest year ever despite competition from new construction supply."

Single-family home prices, which again increased in December year-over-year, remain at affordable 2004 levels despite more than three years of consistent year-over-year increases.  Condo prices also increased in December, marking 42 months of growth in the last 43 months.

The median sale price for single-family homes increased 3.6 percent, up to $255,000 from $246,180 in December 2013. The average sale price for single-family homes decreased 1.7 percent from $414,560 in December 2013 to $393,340 last month.

Compared to December 2013, the median sale price for condominiums increased 9.6 percent to $195,000 from $175,000 a year prior.  The average sale price for condominiums increased 19.9 percent to $409,707 from $341,687 in December 2013.

Year-end sale prices for 2014 increased 8.9 percent to $245,000 for single-family homes and 8.6 percent to $190,000 for condominiums.

Miami Real Estate Continues Selling Fast, Close to List Price

Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand.

The median number of days on the market for single-family homes sold in December was just 45 days, an increase of 9.8 percent from December 2013. The average percent of original list price received was 94.7 percent, down a negligible 1.7 percent from a year earlier.

The median number of days on the market for condominiums sold in December was 57 days, an increase of 9.6 percent compared to the same period in 2013. The average sale price was 93.8 percent of the asking price, a decrease of 3.3 percent.

The median days on market for properties sold in 2014 were 45 days for single-family homes, an increase of 9.8 percent, and 57 days for condominiums, an increase of 23.9 percent. The average sales price was 95 percent of the asking price, a decrease of 0.6 percent, for single-family homes and 94.7 percent, a decrease of 1.7 percent, for condos.

National and State Figures

Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops in December, rose 2.4 percent from November and were up 3.5 percent from what they were in December 2013, according to the National Association of Realtors (NAR).  Statewide closed sales of existing single-family homes totaled 22,414 in December, up 15.8 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 9,466, up 11.3 percent from December 2013.

The national median existing-home price for all housing types was $209,500 in December, a 6.0 percent increase from December 2013, according to NAR.  The statewide median sale price for single-family existing homes last month was $185,000, up 6.9 percent from the previous year, while that of townhouse-condo properties was $149,000, up 8.4 percent over the previous year.

Statewide closed sales of existing single-family homes totaled 244,543 in 2014, up 8.1 percent compared to the 2013 figure.  Closed sales of condominiums totaled 108,354 statewide in 2014, a decrease of 1.2 percent from 2013.

Cash Sales Decline Slightly, Condo Financing Remains an Obstacle

Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.

In Miami-Dade County, 55.9 percent of total closed sales in December were all-cash transactions, compared to 57.2 percent in December 2013. Cash sales in Miami are still double the national figure of 26 percent. All-cash sales accounted for 41.8 percent of single-family home and 68.5 percent of condominium closings, compared to a year earlier when cash sales were 41.0 percent of single-family home sales and 70.3 percent of condominium sales.

In 2014, cash sales accounted for 57.2 percent of total existing sales compared to 61.6 percent in 2013.

Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.

"In addition to active domestic buyers, foreign buyers continue to bolster the Miami real estate market, as evidenced by the high percentage of cash sales locally compared to the rest of the nation," said Zoller. "As Miami continues to build its image as a leading global city, foreign investment in our real estate is expected to continue to fuel market expansion."

Short Sales Continue to Decrease

While traditional sales remain strong, distressed property transactions in December again declined in Miami-Dade due to fewer short sales.  In December, only 31.5 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 37.2 percent in December 2013.

Short sales and REOs accounted for 7.1 and 24.3 percent, respectively, of total Miami sales in December.  Sales of REOs increased 17.2 percent while that of short sales declined by 53.2 percent.

In 2014, distressed sales accounted for 33.7 percent of total closed sales compared to 37.9 percent in 2013.

Nationally, distressed homes accounted for 11 percent of December sales compared to 14 percent in December 2013 and 9.0 percent in November.

Active Inventory Continues to Rise

After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami.  But total inventory and new listings are now increasing by narrower margins.  Supply and demand for single-family homes continues to favor sellers, while that of condominiums reflects a balanced market between buyers and sellers.

Active listings at the end of December increased 10.9 percent, from 15,963 in 2013 to 17,695 last month but remain 60 percent below 2008 levels, when sales bottomed. Inventory of single-family homes increased 4.7 percent from 5,986 in December 2013 to 6,265 last month. Condominium inventory increased 14.6 percent to 11,430 from 9,977 active listings during the same period in 2013. At the current sales pace, there is a 5.6-month supply of single-family homes, a decrease of .02 percent from 5.6 months (figures the same due to rounding) in December 2013, and an 8.4-month supply of condominiums, up from 7.0 months in December 2013, an increase of 19.7 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.

New listings of single-family homes increased 3.1 percent, up to 1,675 in December 2014 from 1,625 during the same period in 2013. New condominium listings increased 10.4 percent to 2,488.

At the end of the December, total housing inventory nationally declined 11.1 percent to 1.85 million existing homes available for sale compared to the previous month, which represents a 4.4-month supply at the current sales pace.  Unsold inventory nationally is 0.5 percent lower than a year earlier.

December 2014 New Construction Market Update

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

As of December 29, there were nine (9) towers with 981 units that had been completed through 2014 in Miami-Dade County east of I-95, 66 towers with 9,598 units under construction, and 73 towers with 10,554 units that are planned but have not begun development.  There are also 54 towers with 7,905 units that have been announced but not approved.

Overall in Miami-Dade County, developers had announced 202 towers with 29,038 units since 2011 through December 29.

Of the above projects in Miami-Dade: