Miami Condo Prices Rise 8% in July, First Time Since 2008 Bust

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(MIAMI, FL) -- Based on the latest data from the Miami Association of Realtors, sales of existing single-family homes Miami Metropolitan Statistical Area (MSA) rose 47 percent in July, from 593 to 873. Sales of existing condominiums increased 33 percent, from 837 to 1,110, compared to July 2010.

Statewide sales increased 12 percent to 13,874 for single-family homes as well as 12 percent to 5,904 for condominiums compared to July 2010.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 3.5 percent from June but were 21 percent above July 2010, according to the National Association of Realtors (NAR).

"Miami is a hotspot for tourists, the entertainment industry, and global corporations, generating attention from around the world and boosting the local real estate market," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "While local housing inventory has declined dramatically over the last three years, the local market still offers opportunities for all types buyers and competitive pricing compared to many U.S. and international markets."

Cash Transactions

The percentage of cash transactions was unchanged from the previous month, 59 percent of closed sales were cash transactions.  Cash sales accounted for 39 percent of single-family and 74 percent of condominium closings.

Condominium Prices Rise

The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county.  In June, 57 percent of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 65 percent a year earlier.

The median sales price of single-family homes in June decreased eight percent to $182,400 from a year earlier.  The median sales price of condominiums increased eight percent to $118,800.

"We continue to experience strong sales activity despite declining distressed inventory," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "July marks the first time since the boom that the median sales price has increased for condominiums.  This is a positive sign because it is indicative of demand for non-distressed properties, which will result in future market strengthening and rising home values."

Statewide median sales prices increased four percent to $87,800 for condominiums and dropped one percent to $136,500 for single-family homes.  The national median existing-home price for all housing types was $174,000 in July, down 4.4 percent from July 2010.

The average sales prices for single-family homes in Miami-Dade County increased 9.3 percent, from $278,589 in July 2010 to $366,448 in July 2011. The average sales price for condominiums increased 17.9 percent, from $210,870 in July 2010 to $248,682 last month.

Local Housing Inventory Continues to Decline

The inventory of residential listings in Miami-Dade County has dropped 39 percent, from 25,595 to 15,697 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped 3.4 percent from 16,252.  Since August 2008, existing housing inventory has decreased more than 64 percent, down from 43,100.

Total housing inventory nationally fell 1.7 percent at the end of July.

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