Miami housing supply still struggling to satisfy demand
Photo credit: Roman
The area’s real estate has boomed in the last year as Florida leads the US rebound back from financial crisis, according to the Miami Association of Realtors. Fuelled by demand from international investors and local buyers, the market continues to strengthen but increased supply remains insufficient to satisfy demand.
"The Miami real estate market continues to attract significant demand from both domestic and international buyers and investors," said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello.
"Second quarter statistics reflect a strengthening market with limited supply, surging sales, and a majority of cash transactions, mostly as a result of the presence of foreign buyers in Miami from worldwide markets."
In the second quarter, inventory of single-family homes decreased 3.1 percent with the greatest percentage decreases occurring for properties listed under $200,000.
In Miami-Dade, condominium inventory increased 2.6 percent in the second quarter. For condos only inventory listed below $200,000 decreased, with properties listed below $50,000 declining a significant 63.5 percent and listings between $50,000 and $100,000 decreasing 37.6 percent.
In the second quarter, the median sales price for condominiums in Miami-Dade County was $180,000, an increase of 18.4 percent year-over-year and 11 percent compared to the previous quarter. The median sales price for single-family homes rose 21 percent to $205,650 in the second quarter compared to the second quarter of 2012, and 9.4 percent compared to the first quarter of 2013.
Year-over-year, the average sales prices for single-family homes and condominiums increased 14.2 percent to $446,289 and 14.9 percent to $352,246 respectively. Both are significantly outperforming the national average growth of 12.2 per cent (to $203,500), according to the National Association of Realtors. The national median sales price for condominiums was $199,700, a 12.2 percent increase over the previous year. The statewide median sales price for single-family existing homes in the second quarter was $170,000, up 14.1 percent from the same quarter a year ago. The median sales price for condominiums in Florida was up 16.7 percent compared to the same quarter last year at $129,000.
Sales are soaring too. Miami-Dade residential sales – including existing single-family homes and condominiums – spiked 13.6 percent in the second quarter, from 7,228 to 8,214, compared to a year earlier and 27.2 percent compared to the previous quarter. In the second quarter, Miami sales of existing single-family homes increased 19.5 percent compared to a year earlier. The sales of existing condominiums increased 8.9 percent compared to the second quarter of 2012.
Following two consecutive record-breaking years, the Miami real estate market appears to be headed towards another record year, concludes the Miami Association’s report.
"We are experiencing robust sales activity throughout Miami-Dade County and in all price ranges except for properties listed under $100,000," said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez.
2The low end of the market is seeing decreased sales due to a depletion of inventory. As our prices recover, we are also seeing fewer new listings in the lowest price points. In this seller’s market, properties that are priced right are selling very rapidly and generating multiple offers."
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