(MIAMI, FL) -- Based on the latest data from the Miami Association of Realtors, Miami's Metropolitan Statistical Area (MSA) residential sales - including existing single-family homes and condominiums - increased 23 percent in the fourth quarter of 2011, from 4,722 to 5,839, compared to a year earlier. This rise marks 14 consecutive quarters of rising sales that culminated in a record-breaking year for the Miami real estate market.
Miami sales of existing single-family homes increased 21 percent in the fourth quarter compared to a year earlier. The sales of existing condominiums in Miami rose 25 percent compared to the fourth quarter of 2010. Statewide sales of single-family homes increased seven percent while sales of condominiums increased four percent.
"The Miami real estate market experienced further strengthening in the last quarter of 2011, a record-breaking year for Miami home sales," said Martha Pomares, 2012 Chairman of the Board of the Miami Association of Realtors. "International buyers and investors have absorbed the excess inventory in existence two and three years ago, resulting in limited housing supply and now rising prices. And we expect further strengthening in 2012."
Median Sales Prices
The median sales price for single-family homes in Miami-Dade in the fourth quarter of 2011 was $176,200, a negligible one percent drop from a year earlier. The median sales price for condominiums was $124,100, a 19 percent increase. Statewide, median sales prices dropped one percent to $132,000 for single-family homes and rose five percent to $88,800 for condominiums.
Despite short sales and REOs (bank-owned properties) continuing to account for a significant percentage of closed home sales in Miami, limited supply and heightened demand are driving price appreciation earlier than expected.
"Miami is a true global city, attracting attention on many fronts, including tourism, trade, banking and culture and arts in addition to real estate," said Miami Association of Realtors Residential President Patricia Delinois. "Miami's global appeal is generating positive economic trends such as population growth, job creation, decreasing unemployment rate, and improving consumer confidence, which should further drive demand for Miami real estate this year."
Inventory Levels and Months of Supply
Total housing inventory in Miami-Dade County has decreased more than 40 percent from a year ago and six percent from the previous quarter. Currently there are less than 6 months of supply in Miami-Dade County.