Miami boom mostly at the top of the market

Photo credit: Roman

The MAR figures shows that closed sales and new listings for properties priced below $100,000 experienced sharp declines, while existing inventory only decreased for condominiums listed for less than $50,000 and single-family homes with asking prices beneath $100,000.

The overall figures, though, hide the slump at the lower end of the market. Indeed, new listings of single-family homes for sale surged 11.4 per cent in November 2013 year-on-year, while condominium listings also grew 1.9 per cent annually.

“Strong growth in listings is a sign that Miami homeowners are realizing it is a good time to sell,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez.

"Many homeowners are aware of rising values and the robust performance of the Miami real estate market over the last three years. Due to consistent price appreciation, many homeowners have recovered equity lost during the boom and are now able or more willing to sell and profit.”

Due to increased sales in higher price points, new listings are also increasing in these market sectors. Indeed, single-family homes priced between $600,000 and $1 million accounted for 8 per cent of all new listings and saw an impressive increase of 58.2 per cent year-on-year. Listings for homes priced between $400,000 and $599,999 also grew by 53.3 per cent annually, while the $250-300,000 sector also saw a growth of 42 per cent. Listings for property priced underneath $100,000, though, fell 24.3 per cent.

While there was a slight decline of 2.4 percent in the overall sales of single-family homes last November, there were double-digit sales increases across various price points. Generally, only sales for single-family homes below $150,000 experienced declines compared to the previous year, while homes priced between $300,000-$399,999 saw a robust growth in sales of 39.4 per cent year-on-year.

“While sales of condos and homes in Miami are strong and fueling appreciation, there is still inventory in all price ranges, including affordable properties for buyers looking for value” said 2014 MIAMI Association of REALTORS Residential President Francisco Angulo.