Miami Property Market Continues Blistering Pace in February
According to the Miami Association of Realtors, Miami's housing market continues to enjoy robust activity and ever-increasing price gains during the month of February 2014.
Median sale prices again increased significantly for both single-family homes and condominiums in February. The median sales price for single-family homes jumped 17 percent, up to $227,000 from $194,000 in February 2013, marking 27 straight months of growth. The average sale price for single-family homes increased 6.7 percent from $389,368 in February 2013 to $415,312 last month.
"Despite the recent increase in inventory, sales activity remains at historically strong levels, resulting in rising prices," said 2014 Chairman of the Board of the Miami Association of Realtors Liza Mendez. "While additional inventory is creating a more balanced market, the fact that homes continue to sell fast and almost at asking price is still indicative of a seller's market."
The median sales price for condominiums has increased for 32 consecutive months. Compared to February 2013, the median sales price for condominiums increased by 7.3 percent to $177,000 from $165,000 a year prior. The average sale price for condominiums increased 10.8 percent to $337,382 from $304,472 in February 2013.
Miami real estate continues to sell at a rapid pace and nearly at asking price, indicating properties are being priced right and buyers realize they need to be competitive in the current market.
The median number of days on the market for single-family homes sold in February was just 47 days, a decrease of 2.1 percent from February 2013. The average percent of original list price received was 95.2 percent, up 1.4 percent from 93.9 percent in February 2013.
The median number of days on the market for condominiums sold in February was 57 days, an increase of 18.8 percent compared to the same period in 2013. The average sales price was 95 percent of the asking price, a negligible decrease of 0.8 percent.
In February, residential real estate sales in Miami-Dade County decreased a negligible 1.9 percent to 2,046 compared to 2,075 in February of last year. Single-family home sales increased 1.3 percent relative to February 2013, from 849 to 860. Compared to February 2013, condominium sales decline 4.1 percent from 1,226 the previous year to 1,176 sales last month.
"The Miami real estate market also offers great opportunities for buyers," said 2014 Miami Association of Realtors Residential President Francisco Angulo. "Prices are still low, comparable to what they were more than 10 years ago. And, interest rates are still at historical lows, making buying a home more affordable. Consumers considering buying a home should take advantage of all of the current favorable market conditions."
Active listings at the end of February increased 26.8 percent, from 13,280 in 2013 to 16,836 last month. Inventory of single-family homes increased 18.3 percent from 5,169 in February 2013 to 6,113 last month. Condominium inventory increased 32.2 percent to 10,723 from 8,111 active listings during the same period in 2013. At the current sales pace, there is a 5.6-month supply of single-family homes, a slight increase of 6.0 percent from 5.3 months in February 2013, and a 7.5-month supply of condominiums, up from 5.9 months in February 2013, an increase of 26.2 percent.
New listings of single-family homes increased 10.6 percent, up to 2,006 in February 2014 from 1,667 during the same period in 2013. Condominium listings increased 11.3 percent from 2,655 in February 2013 to 2,956 last month.
At the end of the February, total housing inventory nationally rose 6.4 percent to 2.00 million existing homes available for sale.
Sales of distressed properties continue to sharply decline in Miami-Dade County. In February, only 36 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 42.2 percent in February 2013. Sales of REOs increased 26 percent while sales of short sales sharply declined by 51 percent. Nationally, distressed homes accounted for 16 percent of February sales compared to 15 percent in January and 25 percent in February 2013.
The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 20.9 percent to $163,150 and 13.6 percent to $110,750 respectively.
In Miami-Dade County, 62.5 percent of total closed sales in February were all-cash transactions, compared to 66.5 percent in February 2013. Cash sales in Miami are still significantly higher than the national average of 35 percent. All-cash sales accounted for 49.5 percent of single-family home and 72 percent of condominium closings, compared to a year ago when cash sales were 49.6 percent of single-family home sales and 78.1 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.