Foreign investment stays strong in miami

Brickell Skyline - Miami, Florida Photo: Adam Mizrahi

Foreign investment is still going strong in Miami's property market, as foreign buyers account for up to half of all sales.

Miami’s single-family home market registered its most robust sales month since December, and median sales prices for all housing types rose in April, according to a new report by Miami Association of Realtors.

Miami sold 1,247 single-family homes in April 2015, the most transactions for the market in the month of April since the 2007-09 global recession. Last month’s sales total marks the most single-family transactions in a month since December 2014 when Miami had 1,250 sales.

"The continued stability in Miami’s job market and low interest rates are improving buyer confidence," says Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of Miami Association. "Not only are we seeing more single-family home sales in Miami, but we are seeing more homes and condos listed as seller confidence grows."

While local buyers are returning to the market, though, international buyers remain keen on Florida - and, in particular, Miami - as the area's house prices remain attractive, both in terms of affordability and potential for capital growth.

Indeed, single-family home prices, which again increased in April, remain at affordable 2004 levels despite more than three years of consistent year-over-year increases. Condo prices also increased in April 2015, marking 46 months of growth in the last 47 months. The median sale price for single-family homes increased 7 per cent, up to $260,000 in April 2015. The median sale price for condominiums increased 3.1 per cent in April to $199,000.

Cash deals represented 51.9 per cent of Miami’s total closed sales in April 2015. While this is down from 59.3 per cent in April 2014, it remains double the national average of just 24 per cent. Since 82 per cent of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash buyers continues to reflect South Florida’s ability to attract international buyers.