According to the Miami Association of Realtors, following the second consecutive record sales year, the Miami real estate market started 2013 strong with rising sales and prices amid limited supply.
Miami-Dade County residential sales increased 7.5 percent in January compared to a year earlier. The sales of existing single-family homes in Miami-Dade increased 19.1 percent, from 691 to 823. Sales of existing condominiums increased 0.3 percent, from 1,121 to 1,124, year-over-year.
"The consistent strengthening and improvement of the Miami real estate market is generating much excitement and attention both domestically and internationally," said 2013 Chairman of the Board of the Miami Association of Realtors Natascha Tello. "We expect prices to continue to rise as a result of the significant demand that currently exists for both sales and rentals. While more new listings are coming on the market, there still is insufficient supply to satisfy consumer demand and significant fewer new listings in the lower price ranges."
Statewide sales of existing single-family homes totaled 13,679 in January, up 11.7 percent compared to a year ago, according to the latest data released by Florida Realtors. Statewide condominium sales totaled 6,670, up 2.0 percent from January 2012. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 0.4 percent from December and were 9.1 percent higher than they were in January 2012, according to the National Association of Realtors.
Demand Expected to Continue Drive Appreciation
Miami home prices rose again in January, marking 14 consecutive months of appreciation for both single-family homes and condominiums. The median sales price of Miami-Dade condominiums, which has increased each of the last 19 months, rose 24.1 percent to $155,000 compared to a year earlier and decreased 4.9 percent compared to the previous month. The
median sales price of single-family homes rose 14.8 percent to $194,000 year-over-year and decreased 9.4 percent compared to the previous month.
The average sales price for single-family homes in Miami-Dade County decreased 2.4 percent to $308,978. The average sales price for condominiums increased 17.2 percent to $290,378.
Florida and U.S. Home Prices
Statewide median sales prices in January increased 12.4 percent to $145,000 for single-family homes and 18 percent to $112,000 for condominiums. The national median existing-home price for all housing types was $173,600 in January, a 12.3 percent increase from January 2012, according to the National Association of Realtors (NAR).
"The current robust performance of the Miami market is not only driving prices but also creating a seller's market," said 2013 Miami Association of Realtors Residential President Fernando I. Martinez. "Properties that are priced right are selling very rapidly and generating multiple offers. There are still good opportunities available, but buyers need to be more focused. Sellers who have been hesitant to put properties on the market should consider doing so now. More listings are definitely needed to satisfy demand."
Inventory Shortage Persists
Active listings at the end of January were 10.7 percent below what they were in January 2012, when the market was already experiencing a housing shortage. Inventory of single-family homes dropped 12.9 percent, while that of condominiums decreased 9.3 percent. Currently, there are 5.3 months of supply of single-family homes and 6.0 months of supply of condominiums in Miami-Dade, representing drops of 20.4 and 11.5 percent respectively. Currently, there are 12,211 active listings in Miami-Dade County.
Total housing inventory nationally decreased 4.9 percent at the end of January and was 25.3 percent below year-ago levels, representing a 4.3-month supply.
Fewer Distressed Sales
Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation.
In January, 43.2 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 59.2 percent in January 2012 and 41.1 percent the previous month. Nationally, distressed homes accounted for 23 percent of January sales.
Cash Sales Reflect Presence of International Buyers
In Miami-Dade County, 64.7 percent of total closed sales in January were all-cash sales, compared to 69.8 percent in January 2013 and 63 percent the previous month. Cash sales accounted for 50.1 percent of single-family and 75.5 percent of condominium closings. Nearly 90 percent of foreign buyers in Florida purchase properties all cash. This reflects the much stronger presence of international buyers in the Miami real estate market - by comparison all-cash sales nationally accounted for 28 percent of transactions in January, down from 29 percent the previous month and 31 percent in January 2012.