Miami property market enjoys "robust" start to 2014

Brickell Skyline - Miami, Florida Photo: Adam Mizrahi

Residential real estate sales in Miami-Dade County soared 11.6 per cent year-on-year in January 2014, according to the Miami Association of Realtors. Single-family home sales increased 9.8 per cent, while condo sales climbed 12.9 per cent.

That soaring demand pushed up prices too, with the median price of single-family homes jumping 16 per cent to $225,000, the 26th month of growth in a row. The average sale price for single-family homes rocketed even higher, rising 32.3 per cent to $408,626 year-on-year.

“Record demand for Miami properties continues to fuel significant appreciation despite much needed supply readily becoming available,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “While the Miami real estate market continues to strengthen, rising inventory is fortunately creating a more balanced market between buyers and sellers.  Such balance reflects the health of the local market.”

Sellers are increasingly confident in the market, with new listings of single-family homes increasing 13.8 per cent over the same period. Condo listings also spiked 20.1 percent. The Miami Association of Realtors attributes this rise partly to a successful campaign designed to encourage homeowners to sell during the severe housing shortage experienced in 2012 and 2013.

“Homeowners in Miami have recovered value lost during the downturn and have realized it’s a good time to sell, which is bringing much needed supply to the local market after years of very limited housing inventory," commented 2014 Miami Association of Reators Residential President Francisco Angulo.

Investors are equally confident in the area's real estate: 62 per cent of total closed sales in January were all-cash sales, a drop compared to 65 percent in January 2013, but still significantly higher than the national average of 33 per cent. With nearly 90 per cent of foreign buyers in Florida purchasing properties all cash, the figures show a positive start to the year for both local homeowners and international buyers.