Miami Condo Prices Rise Again in October as International Buyers Continue to Pay Cash

Miami Condo Prices Rise Again in October as International Buyers Continue to Pay Cash

Residential News » Residential Real Estate Edition | By Michael Gerrity | November 23, 2011 8:00 AM ET

Miami-Condo-Market-Report-keyimage.png (MIAMI, FL) -- According to Miami Association of Realtors, sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 41 percent in October, from 546 to 769, compared to October 2010. Sales of existing condominiums increased 63 percent, from 739 to 1,202, compared to October 2010.

Statewide sales increased 13 percent to 13,755 for single-family homes and 12 percent to 6,132 for condominiums compared to October 2010.  Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 1.4 percent from the previous month and were 13.5 percent above October 2010, according to the National Association of Realtors (NAR).

"We are encouraged by the record-breaking performance of the Miami real estate market this year," said Jack H. Levine, 2011 Chairman of the Board of the Miami Association of Realtors.  "Rising demand and limited supply is yielding higher average and median sales prices, and we expect to see double-digit price appreciation in 2012."

International Buyers Fuel Cash Transactions

The percentage of cash transactions rose to 64 percent, up one percent compared to the previous month.  Cash sales accounted for 43 percent of single-family and 77 percent of condominium closings.  Nearly 90 percent of international buyers in Florida purchase properties all cash.  Nationally, all-cash sales accounted for 29 percent of transactions, reflecting the stronger presence of international buyers in the Miami real estate market.

Condominium Prices Rise Again

The effect of short sales and foreclosures on the median and average sales prices for both single-family homes and condominiums has lessened particularly in some areas of the county.  In October, 57 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 61 percent in October 2010 and 60 percent the previous month.

In October, the median sales price for condominiums rose for the third consecutive month.  The median sales price of condominiums in October increased eight percent to $117,900. The median sales price of single-family homes decreased 12 percent to $174,600 from a year earlier.

"Miami is an enviable position, leading the nation in the real estate market recovery," said 2011 Miami Association of Realtors Residential President Ralph E. De Martino.  "International buyers continue to play a major role in fueling the local market strengthening.  Demand for local properties from domestic and foreign buyers will result in the local market outperforming the nation long into the future."

Statewide median sales prices decreased four percent to $131,200 for single-family homes and increased nine percent to $87,800 for condominiums.  The national median existing-home price for all housing types was $161,600 in October, down 5.8 percent from October 2010.

The average sales prices for single-family homes in Miami-Dade County increased 6.5 percent, from $266,726 in October 2010 to $282,947 in October 2011. The average sales price for condominiums increased 14.3 percent, from $197,811 in October 2010 to $226,151 last month.

Inventory Continues Sharp Decline

The inventory of residential listings in Miami-Dade County has dropped 38 percent, from 24,501 to 15,127 active listings, in the last year. Compared to the previous month, the total inventory of homes dropped one percent from 15,264.  Since August 2008, existing housing inventory has decreased more than 65 percent, down from 43,100.

Total housing inventory nationally fell 2.2 percent to million at the end of October compared to the previous month.

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