Sales in Miami soared last month due to increased demand

Taylor Scott International News

Sales in the Miami real estate market, one of the most popular US locations with overseas buyers, soared in October, exceeding record activity recorded in 2013. Single family home sales increased by 13.6% compared to October 2013 condominium sales increased 6.5% while combined, residential real estate sales increased 9.5% compared to a year ago. ‘Miami continues to experience population growth, interest from foreign and domestic second home buyers, and economic expansion,’ said Liza Mendez, chairman of the Board of the Miami Association of Realtors. ‘The Miami real estate market continues to strengthen due to demand for local properties, as evidenced by sales that exceed record activity in 2013,’she added. Overall the data shows that single family home prices, which again increased in October, remain at affordable 2004 levels despite 35 months of consistent year on year growth. 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% to $240,000 but the average sale price decreased 6.6% to $393,515 last month. Compared to October 2013, the median sale price for condominiums increased by 8.8% to $185,000 and the average sale price for condominiums increased 22.3% to $362,657. The association monthly report points out that 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 43 days, an increase of 7.5% from October 2013. The average percent of original list price received was 95.3%, down a negligible 1% 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% compared to the same period in 2013. The average sales price was 93.7% of the asking price, a decrease of 3.9%. 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. Some 55.8% of total closed sales in October were all cash transactions, compared to 61.7% in October 2013. Cash sales in Miami are still more than double the national figure of 27%. All cash sales accounted for 40.8% of single family home and 67.8% of condominium closings compared to a year earlier. 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. 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, according to Francisco Angulo, residential president of the Miami Association of Realtors. ‘Seller confidence is resulting in greater inventory becoming available in the Miami real estate market. But strong home sales in Miami continue… Continue reading →

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