Miami Condo Sales Spike 46% in May as International Buyers Drive Market With Cash Purchases

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According to the Miami Association of Realtors, sales of existing condominiums in the Miami Metropolitan Statistical Area (MSA) increased 46 percent, from 972 to 1,420, compared to May 2010 and 1.1 percent compared to the previous month. Sales of existing single-family homes rose 20 percent in May, from 727 to 875, and 5.4 percent compared to the previous month.

In May, 60 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 8,338 for condominiums and three percent for single-family homes to 17,228.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 3.8 percent from April and were 15.3 percent below May 2010, according to the National Association of Realtors (NAR).

"The current performance of the Miami market is exceeding expectations, as we continue to see increased demand for local properties and higher sales levels than we have seen since the boom years," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "Presently, there is only a 7.4 month supply of housing inventory in Miami-Dade County.   Both U.S. and international buyers continue to take advantage of record affordability, Miami's attractive lifestyle and weather, and other enviable local attributes."

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, 57 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 May decreased eight percent to $180,200 from a year earlier but increased seven percent from the previous month.  The median sales price of condominiums dropped one percent to $124,300 but increased 7.4 percent from the previous month.

"May figures are very encouraging, as they reflect continued market strengthening and stabilization," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "The number of distressed sales dropped by four percent, which means more non-distressed transactions are taking place.  We also continue to see a significant reduction in housing inventory, which points to an evident demand that should result in further market strengthening in the near future."

Statewide median sales prices increased two percent to $98,200 for condominiums and dropped five percent to $135,500 for single-family homes. The national median existing-home price for all housing types was $166,500 in May, a 4.6 percent drop from May 2010.

The average sales prices for single-family homes in Miami-Dade County increased 5.6 percent, from $320,277 in May 2010 to $338,085 in May 2011. The average sales price for condominiums increased 3.1 percent, from $244,979 in May 2010 to $252,495 last month.

Existing Housing Inventory Continues to Decline

The inventory of residential listings in Miami-Dade County dropped 32 percent from 24,721 in June 2010 to 16,917 in June 2011. Compared to last month, the total inventory of homes dropped six percent from 17,897.  Since August 2008, existing housing inventory has decreased nearly 61 percent, down from 43,095.

Total housing inventory nationally fell one percent at the end of May.

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