Foreign Investors Boosting Miami Property Market - Now Up 28 Straight Months
The median sale price for single family homes increased 4.4%, up to $235,000 from $225,000 in March 2013, marking 28 straight months of growth, according to the latest data from the Miami Association of Realtors.
The data also shows that the average sale price for single family homes increased 17.8% from $389,847 in March 2013 to $459,102 last month.
‘We continue to experience strong demand for Miami properties in 2014. While additional inventory is creating a more balanced market, strong sales continue to drive growth, as Miami remains a focal point for buyers and investors worldwide,’ said Liza Mendez, chair of the board of the MAR.
The median sale price for condominiums has increased for 33 months in a row and compared to March 2013, the median sale price for condominiums increased by 19.8% to $200,000 from $167,000 a year prior. The average sale price for condominiums increased 16.3% to $377,290 from $324,380 in March 2013.
In March, residential real estate sales in Miami-Dade County increased 2.5% single family home sales increased 10.5% relative to March 2013. Compared to March 2013, condominium sales declined 3.1%.
Miami real estate continues to sell at a rapid pace and nearly at asking price, which the association says indicates that properties are being priced right, while buyers realize the need to be competitive in the current market.
The median number of days on the market for single family homes sold in March was 47 days, an increase of 11.9% from March 2013. The average percent of original list price received was 94.9%, down 0.4% from 95.3% in March 2013.
The median number of days on the market for condominiums sold in March was 59 days, an increase of 22.9% compared to the same period in 2013. The average sales price was 94.2% of the asking price, a decrease of 2.5%.
Active listings at the end of March increased 29.1% and inventory of single family homes increased 22.5% while condominium inventory increased 33.3%.
At the current sales pace, there is a 5.6 month supply of single family homes, an increase of 9.4% and a 7.5 month supply of condominiums, an increase of 27.7%. New listings of single family homes increased 10.2% and condominium listings increased 13.7%.
Sales of distressed properties continue to sharply decline in Miami-Dade County. In March, only 31.5% of all closed residential sales were distressed, including bank owned properties and short sales, compared to 41.4% in March 2013. Sales of REOs increased 26% while sales of short sales sharply declined by 51%.
‘A significant decrease in distressed properties is another indication of the health of the Miami real estate market. Rising home values and an improving economy are resulting in fewer short sales and foreclosures,’ said MAR residential president Francisco Angulo.
‘Similarly, increased property equity and consumer confidence are yielding more new listings and inventory, which allows for a more balanced market between buyers and sellers,’ he added.
The median sales price of single family home and condominium foreclosures in Miami-Dade increased 4.7% to $151,500 and 11.4% to $117,000, respectively.
Some 60.5% of total closed sales in March were all cash transactions, compared to 63.7% a year ago. Cash sales in Miami are still significantly higher than the national average of 33%.
All cash sales accounted for 48.4% of single family home and 70.2% of condominium closings, compared to a year earlier when cash sales were 44.8% of single family home sales and 76.9% of condominium sales.
Since nearly 90% 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.