Miami momentum continues to build

Brickell Skyline - Miami, Florida Photo: Adam Mizrahi

Momentum continues to build in Miami's housing market, as demand drives sales and prices higher.

Single-family home transactions registered double-digit growth year-over-year and existing condominium sales rose despite an increase in new condo construction, according to the Miami Association of Realtors.

Sales of single-family homes jumped 10 per cent year-on-year, followed closely by sales of condos, which jumped 6.8 per cent year-on-year.

As a result of demand, Miami single-family homes and condominiums continue to sell close to their asking prices. Indeed, the median sale price for single-family homes increased 10.6 per cent, up to $260,000 in March 2015 from $235,000 in March 2014. The median sale price for condominiums surged 7.5 percent in March to $215,000 from $200,000 a year ago.

The is the 45th time in the last 46 months that condo prices have risen. Despite more than four years of consistent year-over-year increases in home prices, though, they remain at affordable 2004 levels.

"Miami continues to attract international and domestic home buyers looking to live in a global city with world-class amenities and a diversified economy," says Christopher Zoller, 2015 Residential President. "Buyer demand in Miami properties is leading to more sales and higher sale prices."

The figures follow the nationwide report from the National Association of Realtors, which found that US sales have increased year-over-year for six consecutive months and are now 10.4 per cent above a year ago, the highest annual increase since August 2013.

Statewide closed sales of existing single-family homes totaled 24,811 last month, up 24.6 per cent over March 2014, according to Florida Realtors, as Florida remains ahead of the national pace, thanks to strong demand.

Indeed, cash deals represented 54.2 percent of Miami’s total closed sales in March 2015, down from 60.5 percent in March 2014 by above the nationwide average of 24 per cent, indicating Florida's continuing ability to attract international buyers. Foreign investors tend to prefer condos, according to the Miami Association, as cash makes up 67.3 per cent of condominium closings, compared to 38.6 per cent of single-family home sales.