According to the Miami Association of Realtors, Miami's real estate market continued to reflect strength, healthier growth, and more balance between buyers and sellers during the month of May 2014.
Miami's Median sale prices increased again for both single-family homes and condominiums in May but remain at affordable 2003 levels. The median sale price for single-family homes increased 12.6 percent, up to $250,000 from $222,000 in May 2013, marking 30 straight months of growth. The average sale price for single-family homes increased 21.4 percent from $408,021 in May 2013 to $495,525 last month.
"The Miami real estate market continues to perform well as demand remains historically strong but while fueling more balanced price growth," said 2014 Chairman of the Board of the Miami Association of Realtors Liza Mendez. "Sales are consistent with 2013 activity, which set a third consecutive sales record, and properties are selling rapidly and close to asking price."
The median sale price for condominiums has increased for 35 consecutive months. Compared to May 2013, the median sale price for condominiums increased by 3.6 percent to $186,600 from $180,000 a year prior. The average sale price for condominiums increased 3.8 percent to $384,900 from $370,843 in May 2013.
Home Sales Decline Compared to Record Levels
In May, residential real estate sales in Miami-Dade County decreased 6.4 percent to 2,704 compared to 2,888 in May of last year. Single-family home sales decreased a negligible 0.1 percent relative to May 2013, from 1,216 to 1,215. Compared to May 2013, condominium sales declined 10.9 percent from 1,672 the previous year to 1,489 last month.
Miami Real Estate Selling Fast, Close to List Price
Miami real estate continues to sell at a rapid pace and at nearly asking price, reflecting strong demand compared 2013, which was the third consecutive record sales year. The median number of days on the market for single-family homes sold in May was just 47 days, an increase of 9.3 percent from May 2013. The average percent of original list price received was 94.3 percent, down only 0.6 percent from May 2013.
The median number of days on the market for condominiums sold in May was 53 days, an increase of 10.4 percent compared to the same period in 2013. The average sales price was 94.3 percent of the asking price, a decrease of 2.4 percent.
National and State Figures
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 4.9 percent from April but were 5.0 percent below what they were in May 2013, according to the National Association of Realtors (NAR). Statewide closed sales of existing single-family homes totaled 23,013 in May, up 3.6 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 10,558, down 7.0 percent from May 2013.
The national median existing-home price for all housing types was $213,400 in May, a 5.2 percent increase from April 2013, according to NAR. The statewide median sale price for single-family existing homes last month was $180,000, up 64.3 percent from the previous year, while that of townhouse-condo properties was $145,000, up 13.7 percent over the previous year.
Active Inventory Rises Year-Over-Year, Drops Month-Over-Month
While seller confidence is resulting in more properties being listed for sale, new listings are increasing by a much smaller percentage than they had during the last year.
Housing inventory in Miami-Dade has dropped month-over-month for the second consecutive month. Active listings dropped 0.7 percent compared to April, while inventory of single-family homes and condominiums has dropped nearly 2.0 percent since February and 0.8 since last month, respectively.
Active listings at the end of May increased 29.9 percent, from 13,042 in 2013 to 16,945 last month but remains 60 percent below 2008, when sales bottomed. Inventory of single-family homes increased 20.2 percent from 4,971 in May 2013 to 6,004 last month. Condominium inventory increased 36 percent to 10,941 from 8,045 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 10 percent from 5 months in May 2013, and a 7.7-month supply of condominiums, up from 5.8 months in May 2013, an increase of 34.2 percent.
New listings of single-family homes increased 1.9 percent, up to 2,069 in May 2014 from 2,030 during the same period in 2013. New condominium listings increased 5.3 percent from 2,752 in May 2013 to 2,871 last month.
At the end of the May, total housing inventory nationally rose 2.2 percent to 2.28 million existing homes available for sale, which represents a 5.6-month supply at the current sales pace.
Short Sales Decline 54% in May
While traditional sales continue to increase, distressed property transactions in May again declined in Miami-Dade due to fewer short sales. In May, only 32.5 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 37.1 percent in May 2013.
"Foreclosure filings are sharply declining in Miami-Dade, so we expect the distressed inventory to continue to fall in future months," said 2014 Miami Association of Realtors Residential President Francisco Angulo. "In addition, as homeowners continue to recover equity, fewer short sales are being transacted, which will continue to fuel the health of the Miami real estate market."
Of total Miami sales in May, 9.2 percent were short sales and 23.3 percent were foreclosures. Sales of REOs increased 19 percent while sales of short sales sharply declined by 54.5 percent.
Nationally, distressed homes accounted for 11 percent of May sales compared to 18 percent in May 2013.
Cash Sales Drop to 55%
Cash sales in Miami continue to decline as more financing becomes available. In Miami-Dade County, 55 percent of total closed sales in May were all-cash transactions, compared to 63 percent in May 2013. Cash sales in Miami are still significantly higher than the national average of 32 percent. All-cash sales accounted for 42 percent of single-family home and 66.9 percent of condominium closings, compared to a year earlier when cash sales were 45 percent of single-family home sales and 76.1 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.