Sales, Prices Continue Momentum Amid Housing Shortage
Miami, FL – Sales figures for May show more homeowners are listing properties for sale, but strong demand for properties in all price ranges and limited low-end supply continue to drive prices, according to the 27,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system.
Single-family home sales surged 18.5 this May compared to May 2012. Condominium sales increased 3.9 percent compared to last year’s figures.
May’s sales performance marks 18 consecutive months of appreciation for both single-family homes and condominiums. The median sales price of single-family homes increased 16.8 percent to $222,000 year-over-year but decreased a negligible 1.3 percent compared to the previous month. The median sales price of condominiums, which has significantly increased each of the last 23 months, rose 20 percent to $180,000 compared to a year earlier and 2.9 percent compared to the previous month.
“Miami continues to attract worldwide attention, as foreign and domestic buyers flock to our exciting city,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “The local lifestyle, global business environment, and strategic location between Latin America and Europe are driving population growth that is fueling strong demand for property sales and rentals. This activity makes Miami attractive to buyers and investors who perceive local real estate as a profitable investment. Yet we are still experiencing a housing shortage, which makes now a great time to sell.”
Statewide sales of existing single-family homes totaled 22,375 in May, up 18.7 percent compared to a year ago, according to the latest data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor associations and MLSs. Statewide condominium sales totaled 11,201, up 11.5 percent from May 2012. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 4.2 percent from April and were 12.9 percent higher than they were in April 2012, according to the National Association of Realtors.
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Miami Condo Inventory Slightly . . ./2
Compared to last year’s sales figures, the average sales price for single-family homes in Miami-Dade County in May increased 10.8 percent to $408,021, while the average sales price for condominiums increased 20.5 percent to $370,843.
Florida and U.S. Home Prices
Statewide median sales prices in May increased 15.9 percent to $171,000 for single-family homes and 13 percent to $128,000 for condominiums year-over-year. The national median existing-home price for all housing types was $208,000 in May, a 15.4 percent increase from May 2012, according to the National Association of Realtors (NAR).
More New Listings Necessary to Satisfy Demand
Active listings at the end of May increased 3.4 percent, from 12,611 to 13,042, compared to May 2012, when the market was experiencing a housing shortage. Despite the slight increase due to more new listings coming on the market, current active inventory remains insufficient to satisfy the intense demand for Miami properties. Inventory of single-family homes decreased 2.5 percent, while that of condominiums increased 7.4 percent. At the current sales pace, there is 5 months of supply of single-family homes and 5.8 months of supply of condominiums in Miami-Dade, representing a decrease of 13.4 and an increase of 0.2 percent respectively compared to year-ago levels. Currently, there are 11,940 active listings in Miami-Dade County.
“In Miami, we are seeing a significant number of new listings coming on the market,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “Yet supply is insufficient to satisfy demand, a reality that will continue to drive home price appreciation. Our market remains an attractive option for buyers, both foreign and domestic, as prices remain at 2003 levels despite the robust sales activity that persists.”
Total housing inventory nationally increased 3.3 percent at the end of May but remains 10.1 percent below year-ago levels, representing a 5.1-month supply.
Fewer Distressed Sales Result in Rising Prices
Sales of distressed properties continue to sharply decline in Miami-Dade County, as prices for both REOs and short sales also rose significantly. In May, only 37 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 46 percent in May 2012. Nationally, distressed homes accounted for 18 percent of May sales.
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Miami Condo Inventory Slightly . . ./3
The median sales price of single-family home and condominium foreclosures in Miami-Dade increased 17.6 percent to $147,000 and 6.6 percent to $96,580 respectively.
Cash Sales Remain Strong
In Miami-Dade County, 63 percent of total closed sales in May were all-cash sales compared to 64.4 percent in May 2012. All-cash sales accounted for 44.5 percent of single-family home and 76 percent of condominium closings, compared to a year ago when cash sales were 43.6 percent and 77.7 percent of closed sales respectively. Since nearly 90 percent of foreign buyers in Florida purchase properties all cash, this reflects the much stronger presence of international buyers in the Miami real estate market. By comparison all-cash sales nationally accounted for 33 percent of transactions in May, up from 32 percent the previous month and 28 percent in May 2012.
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating 93 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 27,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local Realtor association in the U.S., and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is www.miamire.com.