According to the Miami Association of Realtors, Miami single-family home and condominium sales surged in October, exceeding record activity in 2013.
Single-family home sales in Miami-Dade County increased 13.6 percent relative to October 2013, from 1,060 to 1,204. Condominium sales increased 6.5 percent from 1,416 the previous year to 1,508 last month. Combined, residential real estate sales increased 9.5 percent to 2,712 compared to 2,476 in October of last year.
"Miami continues to experience population growth, interest from foreign and domestic second home buyers, and economic expansion," said 2014 Chairman of the Board of the Miami Association of Realtors Liza Mendez. "The Miami real estate market continues to strengthen due to demand for local properties, as evidenced by sales that exceed record activity in 2013."
Single-family home prices, which again increased in October, remain at affordable 2004 levels despite 35 months of consistent year-over-year increases. Condo prices also increased in October, marking 40 months of growth in the last 41months. Condo prices declined in August for the first time in more than three years but rebounded in September.
The median sale price for single-family homes increased 9.1 percent, up to $240,000 from $220,000 in October 2013. The average sale price for single-family homes decreased 6.6 percent from $421,546 in October 2013 to $393,515 last month.
Compared to October 2013, the median sale price for condominiums increased by 8.8 percent to $185,000 from $170,000 a year prior. The average sale price for condominiums increased 22.3 percent to $362,657 from $296,568 in October 2013.
Miami Real Estate Selling Fast, Close to List Price
Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand.
The median number of days on the market for single-family homes sold in October was just 43 days, an increase of 7.5 percent from October 2013. The average percent of original list price received was 95.3 percent, down a negligible 1.0 percent from a year earlier.
The median number of days on the market for condominiums sold in October was 58 days, an increase of 31.8 percent compared to the same period in 2013. The average sales price was 93.7 percent of the asking price, a decrease of 3.9 percent.
National and State Figures
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops also bounced back in October, increasing 1.5 percent from September and 2.5 percent below what they were in October 2013, according to the National Association of Realtors (NAR). Statewide closed sales of existing single-family homes totaled 21,894 in October, up 17.8 percent compared to the year-ago figure, according to Florida Realtors. Statewide sales of condominiums totaled 9,377, up 7.4 percent from October 2013.
The national median existing-home price for all housing types was $208,300 in October, a 5.5 percent increase from October 2013, according to NAR. The statewide median sale price for single-family existing homes last month was $177,000, up 4.6 percent from the previous year, while that of townhouse-condo properties was $139,900, up 7.7 percent over the previous year.
Cash Sales Decline Slightly, Condo Financing Remains an Obstacle
Cash sales in Miami continue to decline as more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.
In Miami-Dade County, 55.8 percent of total closed sales in October were all-cash transactions, compared to 61.7 percent in October 2013. Cash sales in Miami are still more than double the national figure of 27 percent. All-cash sales accounted for 40.8 percent of single-family home and 67.8 percent of condominium closings, compared to a year earlier when cash sales were 48.9 percent of single-family home sales and 71.3 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.
Short Sales Continue to Decrease
While traditional sales continue to increase, distressed property transactions in October again declined in Miami-Dade due to fewer short sales. In October, only 34.9 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 38.2 percent in October 2013.
Short sales and REOs accounted for 8.0 and 26.9 percent, respectively, of total Miami sales in October. Sales of REOs increased 30.1 percent while that of short sales declined by 43.6 percent.
Nationally, distressed homes accounted for 9.0 percent of October sales compared to 14 percent in September 2013.
Active Inventory Continues to Rise
After three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins.
"Seller confidence is resulting in greater inventory becoming available in the Miami real estate market," said 2014 Miami Association of Realtors Residential President Francisco Angulo. "But strong home sales in Miami continue to yield rapid inventory absorption, resulting in rising prices even if at a more moderate pace."
Active listings at the end of October increased 19.5 percent, from 14,893 in 2013 to 17,801 last month but remain 60 percent below levels 2008, when sales bottomed. Inventory of single-family homes increased 15.6 percent from 5,571 in October 2013 to 6,439 last month. Condominium inventory increased 21.9 percent to 11,362 from 9,322 active listings during the same period in 2013. At the current sales pace, there is a 5.8-month supply of single-family homes, an increase of 10.4 percent from 5.2 months in October 2013, and an 8.2-month supply of condominiums, up from 6.5 months in October 2013, an increase of 26 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of single-family homes increased 6.8 percent, up to 2,316 in October 2014 from 2,169 during the same period in 2013. New condominium listings increased 3.0 percent from 2,915 in October 2013 to 3,003 last month.
At the end of the October, total housing inventory nationally declined 2.6 percent to 2.22 million existing homes available for sale compared to the previous month, which represents a 5.1-month supply at the current sales pace. Unsold inventory nationally is 5.2 percent higher than a year ago.
New Construction Market Update
Strong sales in the coastal new construction condominium Miami market (east of I-95) continue to reflect significant demand for new properties, according to the latest New Construction Market Status Report released today by Cranespotters.com and MIAMI.
"South Florida's preconstruction condo market is booming east of Interstate 95 in the tricounty area, as the area heads into the winter buying season," said Peter Zalewski, founder of Cranespotters.com. "In the last month, buyers purchased about 730 preconstruction condo units based on the latest CraneSpotters.com Developers Price Survey of exclusive brokerages representing planned towers. Industry sentiment suggest that preconstruction condo sales are expected to strengthen further during the upcoming historically busy winter tourism season."
At the end of October, there were nine (9) towers that had been completed in 2014 in Miami-Dade County east of I-95, 54 under construction, and 62 are planned but have not begun development. There are also 66 towers that have been announced but not approved.
Of the above projects in Miami-Dade:
84 projects with 98 towers comprising 15,050 units are currently selling
67 percent of units have been sold
The mean price per square foot of these units is $855, compared to $850 last month