Demand stays strong for miami property as prices rise

Brickell Skyline - Miami, Florida Photo: Adam Mizrahi

While the Miami real estate market is reflecting more balance, prices continue to rise as sales remain historically high, according to the Miami Association of Realtors.

Median sale prices increased for single-family homes in March by 4.4 per cent year-on-year - the 28th month of growth in a row.  Compared to March 2013, the median sale price for condominiums increased by 19.8 percent to $200,000. The sales price for condos has now increased for 33 consecutive months.

“We continue to experience strong demand for Miami properties in 2014,” said 2014 Chairman of the Board of the MAR, Liza Mendez. “While additional inventory is creating a more balanced market, strong sales continue to drive growth, as Miami remains a focal point for buyers and investors worldwide.”

Miami real estate continues to sell at a rapid pace and nearly at asking price, indicating properties are being priced right, while buyers realize the need to be competitive in the current market. Indeed, in March, residential real estate sales in Miami-Dade County increased 2.5 per cent to 2,542 year-on-year.

The median number of days on the market for single-family homes sold in March was just 47 days, an increase of 11.9 percent from March 2013.

Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops slipped 0.2 percent from February and were 7.5 percent below what they were in March 2013, according to the National Association of Realtors (NAR).  Across Florida, on the other hand, closed sales of existing single-family homes totalled 20,081 in March, up 2.8 per cent compared to the year-ago figure.

Sales of distressed properties continue to sharply decline in Miami-Dade County.  In March, only 31.5 per cent of all closed residential sales in Miami-Dade County were distressed.

“A significant decrease in distressed properties is another indication of the health of the Miami real estate market,” said 2014 MAR Residential President Francisco Angulo. “Rising home values and an improving economy are resulting in fewer short sales and foreclosures. Similarly, increased property equity and consumer confidence are yielding more new listings and inventory, which allows for a more balanced market between buyers and sellers.”

Investors are still active, though, with 60.5 per cent of total closed sales in the county all-cash transactions. Cash sales in Miami are still significantly higher than the national average of 33 per cent; since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.