Miami Property Prices Continue to Rise in 2Q, International Buyers Still Driving the Market

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(Miami, FL) - According to the Miami Association of Realtors, limited housing supply and strong demand both domestically and internationally continue to yield significant home price appreciation.

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Median and Average Sales Prices

The median sales price for single-family homes in Miami-Dade County rose four percent to $185,000 in the second quarter of 2012 compared to the second quarter of 2011, and six percent compared to the first quarter of 2012.  The median sales price for condominiums was $153,000, an increase of 28 percent year-over-year and 18 percent compared to the previous quarter.

"Limited supply of single-family homes and condominiums is resulting in robust price appreciation, reflecting the demand that persists for Miami real estate," said Martha Pomares, 2012 Chairman of the Board of the Miami Association of Realtors.  "Miami is a very unique real estate market, attracting both U.S. and international buyers unlike any other market in the U.S.  Such appeal will continue to support local market strengthening long into the future."

Year-over-year, the average sales prices for single-family homes and condominiums increased 10 percent to $345,191 and 22 percent to $254,045, respectively.

Nationally, the median sales price of existing single-family homes was $181,500 in the second quarter, up 7.3 percent from the second quarter of 2011, according to the National Association of Realtors.  The national median sales price for condominiums was $178,000, a 7.5 percent increase over the previous year.

Homes Sales Rise in 2Q

Miami-Dade residential sales - including existing single-family homes and condominiums - increased two percent in the second quarter, from 6,768 to 6,898, compared to a year earlier.  Following a record-breaking year in 2011, sales in Miami remain at historically strong levels.  In the second quarter, Miami sales of existing single-family homes increased four percent compared to a year earlier and 17 percent compared to the previous quarter.  The sales of existing condominiums increased one percent compared to the second quarter of 2011 and 18 percent compared to the previous quarter.

Nationally, total existing-home sales, including single-family and condo, slipped 0.7 percent to a seasonally adjusted annual rate of 4.54 million in the second quarter from 4.578 million in the first quarter, but were 8.6 percent above the 4.18 million pace during the second quarter of 2011.

"There is obvious and strong demand for Miami properties, despite the dwindling supply," said Miami Association of Realtors Residential President Patricia Delinois.  "We are seeing multiple offers for many properties, which are taking considerably less time to sell.  Still many qualified buyers are being denied the dream of homeownership due to unnecessarily tight mortgage underwriting standards."

Inventory Levels and Months of Supply

Total housing inventory in Miami-Dade County decreased 28 percent year-over-year and 6.1 percent compared to the previous quarter.  Currently, there are 11,497 active listings in Miami-Dade County.