60 Percent of all Miami Residential Sales in Cash

60 Percent of all Miami Residential Sales in Cash

Residential News » North America Residential News Edition | By Michael Gerrity | May 28, 2014 9:47 AM ET

According to the Miami Association of Realtors, the Miami real estate market continued to stabilize in April 2014, as prices increased by more narrow margins and active inventory rose while demand remained strong.
Median sale prices in Miami increased for both single-family homes and condominiums in April.  The median sale price for single-family homes increased 8.0 percent, up to $243,000 from $225,000 in April 2013, marking 29 straight months of growth. The average sale price for single-family homes increased 11.3 percent from $421,207 in April 2013 to $469,088 last month.

"The Miami real estate market continues to stabilize and reflect more balance between buyers and sellers," said 2014 Chairman of the Board of the Miami Association of Realtor Liza Mendez. "Demand remains strong for both single-family homes and condominiums, as both domestic and international buyers continue to be drawn to the unique and vibrant Miami area and all the opportunities that the local market offers."

The median sale price for condominiums has increased for 34 consecutive months.  Compared to April 2013, the median sale price for condominiums increased by 10.3 percent to $193,000 from $175,000 a year prior.  The average sale price for condominiums increased 12.8 percent to $375,707 from $332,955 in April 2013.

Single-Family Home Sales Increase 5.6%

In April, residential real estate sales in Miami-Dade County increased 2.1 percent to 2,712 compared to 2,657 in April of last year. Single-family home sales increased 5.6 percent relative to April 2013, from 1,094 to 1,155. Compared to April 2013, condominium sales remained steady with a negligible 0.4 percent decline from 1,653 the previous year to 1,557 last month.

Miami real estate continues to sell at a rapid pace and at nearly asking price, indicating properties are being priced right, while buyers realize the need to be competitive in the current market.

The median number of days on the market for single-family homes sold in April was just 43 days, an increase of 2.4 percent from April 2013. The average percent of original list price received was 94.7 percent, down only 0.7 percent from April 2013.

The median number of days on the market for condominiums sold in April was 55 days, an increase of 27.9 percent compared to the same period in 2013. The average sales price was 93.6 percent of the asking price, a decrease of 3.7 percent.

National and State Figures

Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 1.3 percent from March but were 6.8 percent below what they were in April 2013, according to the National Association of Realtors (NAR).  Statewide closed sales of existing single-family homes totaled 21,835 in April, up 4.1 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 10,766, down 5.1 percent from April 2013.

The national median existing-home price for all housing types was $201,700 in April, a 5.2 percent increase from April 2013, according to NAR.  The statewide median sale price for single-family existing homes last month was $175,000, up 6.1 percent from the previous year, while that of townhouse-condo properties was $140,500, up 9.8 percent over the previous year.

Active Inventory Increases

Seller confidence is resulting in more properties being listed for sale.  Active listings at the end of April increased 32.5 percent, from 12,883 in 2013 to 17,067 last month but remains 60 percent below 2008, when sales bottomed. Inventory of single-family homes increased 23.7 percent from 4,878 in April 2013 to 6,034 last month. Condominium inventory increased 37.8 percent to 11,033 from 8,005 active listings during the same period in 2013. At the current sales pace, there is a 5.5-month supply of single-family homes, an increase of 11.4 percent from 4.9 months in April 2013, and a 7.7-month supply of condominiums, up from 5.7 months in April 2013, an increase of 34 percent.

"The Miami real estate market current offers opportunities for both buyers and sellers," said 2014 Miami Association of Realtors Residential President Francisco Angulo. "Sellers have recovered equity and confidence lost during the downturn, while buyers have many properties to choose from in all price ranges.  Further, Miami real estate remains affordable, particularly when compared to other major U.S. and international markets."

New listings of single-family homes increased 3.3 percent, up to 2,150 in April 2014 from 2,082 during the same period in 2013. Condominium listings increased 5.3 percent from 2,928 in April 2013 to 3,082 last month.

At the end of the April, total housing inventory nationally rose 16.8 percent to 2.29 million existing homes available for sale, which represents a 5.9-month supply at the current sales pace.

Short Sales Continue to Decline

Distressed property transactions continue to decline in Miami-Dade County due to fewer short sales.  In April, only 32.6 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 36.8 percent in April 2013.

Of the total Miami sales in April, 9.5 percent were short sales and 23 percent were foreclosures.  Sales of REOs increased 31 percent while sales of short sales sharply declined by 48.3 percent.

Nationally, distressed homes accounted for 15 percent of April sales compared to 14 percent in March and 18 percent in April 2013.

Cash Sales Nearly 60% of Total Sales

In Miami-Dade County, 59.8 percent of total closed sales in April were all-cash transactions, compared to 64.8 percent in April 2013. Cash sales in Miami are still significantly higher than the national average of 33 percent. All-cash sales accounted for 44.5 percent of single-family home and 70.3 percent of condominium closings, compared to a year earlier when cash sales were 47.1 percent of single-family home sales and 77.3 percent of condominium sales.

Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.

Real Estate Listings Showcase

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