Foreign Buyers Driving Miami's Brisk Real Estate Recovery, Condo Sales Spike 94% Year-over-Year in April

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According to the Miami Association of Realtors and the local Multiple Listing Service (MLS), sales of existing condominiums in the Miami Metropolitan Statistical Area (MSA) increased 94 percent, from 723 to 1,404, compared to April 2010 and dropped 9 percent compared to last month. Sales of existing single-family homes rose 40 percent in April, from 594 to 830, and dropped 19 percent compared to the previous month.

In April, 63 percent of closed sales were cash transactions.  International sales, which are mostly cash transactions, represent approximately 60 percent of closed resales and 90 percent of new construction sales.

Statewide sales increased 17 percent to 32,364 for condominiums and 2 percent for single-family homes to 17,192.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 8 percent from March and were 12.9 percent below April 2010, according to the National Association of Realtors (NAR).

"We are encouraged by the current performance of the real estate market, as it reflects healthy demand for local properties and points to future growth," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "Our market is attractive to all types of buyers, including international, domestic, vacation, second home, and baby boomers.  Miami's position as a global city and business center combined with great weather, multicultural appeal, and an exciting lifestyle will continue to attract buyers long-term."

Median and Average Sales Price

Short sales and foreclosures continue to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county.  In April, 59 percent of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales.

The median sales price of single-family homes in April decreased 12 percent to $169,200 from a year earlier but increased 6 percent from the previous month.  The median sales price of condominiums dropped 11 percent to $115,700 but increased 19 percent from the previous month.

"In particular, buyers are rapidly absorbing bank-owned properties, which tend to be in the lower price points," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "These properties represent a substantial portion of the market, which is why we are still seeing a decline in the overall median sales price even though the coastal markets are experiencing price appreciation."

Statewide median sales prices decreased 8 percent to $91,900 for condominiums and 6 percent to $131,700 for single-family homes. The national median existing-home price for all housing types was $163,700 in April, a 5 percent drop from April 2010.

The average sales prices for single-family homes in Miami-Dade County increased 20 percent, from $292,131 to $349,990. The average sales price for condominiums decreased 2.0 percent, from $260,298 in April 2010 to $255,469 last month.

Existing Housing Inventory Continues to Decline

The inventory of residential listings in Miami-Dade County dropped 35 percent from 24,331 in May 2010 to 17,897 in April 2011. Compared to last month, the total inventory of homes dropped 5.2 percent from 18,883.  Since August 2008, existing housing inventory has decreased nearly 60 percent, down from 43,095.

Days on the Market

In Miami-Dade County, the total number of days a property stays on the market increased 1.9 percent to 109 days for single-family homes and .04 percent to 125 days for condominiums compared to a year earlier.

The interest rate for a 30-year fixed-rate mortgage averaged 4.84 percent in April, significantly lower than the 5.10 percent averaged during the same month a year earlier, according to Freddie Mac. Florida Realtors' sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

 

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