(MIAMI, FL) -- The Miami real estate market was on fire in 2011.
Miami was the fastest rebounding residential property market in US in 2011 as they enjoyed a new record-setting year in sales velocity, beating out prior 2005 sales record set during the height of the South Florida condo boom era.
According to the Miami Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS), total 2011 sales, including both condominiums and single-family homes, in Miami-Dade County were 24,929, up four percent from the 24,025 in 2005 and 46 percent from 17,068 in 2010. Year-end closed sales of condominiums surged 54 percent, from 9,760 in 2010 to 15,009 in 2011. Total single-family home sales increased 36 percent from 7,308 in 2010 to 9,920 in 2011.
"The Miami real estate market exceeded all expectations in 2011, posting record sales that yielded rising prices," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors. "Miami is a very unique city in most ways, and the real estate market recovery proved no different. Miami is hot, and it's not just the weather!"
The sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 16 percent in December, from 734 to 734, compared to December 2010. Sales of condominiums increased 22 percent, from 985 to 1,200, compared to December 2010.
"2011 was a remarkable year for the Miami real estate market," said Martha Pomares, 2012 Chairman of the Board of the Miami Association of Realtors. "Unlike other markets throughout the U.S., Miami has recovered faster and stronger than expected and is poised for further growth and double-digit price appreciation in 2012."
Statewide sales dropped two percent to 6,836 for condominiums and two percent for single-family homes to 15,290. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose five percent from November and were 3.6 percent higher than they were in December 2010, according to the National Association of Realtors (NAR).
Median and Average Sales Prices Rise in December
In the Miami MSA, the median sales price of condominiums in December spiked 31 percent to $129,900 from a year earlier. The median sales price of single-family homes jumped 16 percent to $182,300. Statewide median sales prices in December increased four percent to $91,900 for condominiums and one percent to $134,300 for single-family homes. The national median existing-home price for all housing types was $164,500 in December, a 2.5 percent drop from December 2010.
The year-end median sales price dropped nine percent for single-family homes and three percent for condominiums when comparing 2011 to 2010.
In December, the average sales price for single-family homes in Miami-Dade County increased 8.3 percent, from $302,098 in 2010 to $327,060 in 2011. The average sales prices for condominiums jumped 21.5 percent, from $223,962 to $272,186.
"International buyers and investors continue to play a major role in boosting market performance in Miami," said 2012 Miami Association of Realtors Residential President Patricia Delinois. "Miami is the top area in the U.S. for international real estate buyers. These buyers from worldwide markets will continue to strengthen the Miami market long into the future."
Inventory Declines 40 Percent in One Year
The inventory of residential listings in Miami-Dade County dropped 39 percent from 24,278 in to 14,087 over the last year. Compared to last month, the total inventory of homes dropped eight percent. Currently, there is a 4.9-month supply of condominium inventory and a 5.8-month supply of single-family homes in Miami-Dade County, reflecting a very healthy marketplace. Total housing inventory nationally fell 9.2 percent at the end of December.
Heightened demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and price appreciation. In December, 54 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 59 percent in December 2010 and 56 percent the previous month. Contrary to a year ago, there are now more short sales being transacted than REOs.
International Buyers Fuel Cash Sales
In Miami-Dade County, 63 percent of total closed sales in December were all-cash sales. Cash sales accounted for 42 percent of single-family and 77 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash.
Nationally, all-cash sales accounted for 29 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.