The Miami real estate market is continuing to perform well, matching its 2013 performance despite increased supply thanks to strong demand. Median and average (mean) house sale prices continued to rise, according to the Miami Association of Realtors.
In the third quarter for 2014, the median sales price for homes in Miami-Dade County was $250,000, an increase of 8.7% on last year, while the median sales price for condominiums rose by 3.5% to $289,000. These latest increases mark the 11th consecutive quarter of price growth in the Miami market for both types of property,
Liza Mendez, chairman of the MAR, said, ‘the Miami real estate market continues to attract the attention of both domestic and foreign buyers, fuelling solid growth and creating opportunities for both buyers and sellers.’
‘While there is more supply available than a year ago, there is still strong demand, and the growth of supply, new listings, sales and prices is more moderate, resulting in a more balanced market,’ Ms. Mendez continued.
Statewide, the median sales price for single family homes was up 4% across Florida form the same time a year ago, according to the latest data from Florida Realtor. The median sales price for condominiums in Florida was up 6.9% compared with the same quarter last year, reaching $139,000.
The average sales price for single family homes and condominiums in Miami Dade county increased 14.9% to $438,431 and 3.8% to $341,927 respectively.
Sales have decreased since last year, however. In the third quarter of this year sales fell across Miami-Dade county by an average of 5% year on year, though that doesn’t necessarily imply a typical ‘price up, sales down’ situation, because the comparison period, the third quarter of 2013, saw record sales activity that was universally agreed to be an unsustainable blip. The majority of the decrease in sales is accounted for by a sharp fall in condominium sales: while single family home sales actually rose 0.2%, condominium sales dropped 9% year on year.
Francisco Angulo, residential president of the MAR, said, ‘in Miami, market performance continues to vary greatly depending on location, property type, price range and other factors.’
‘While in most cases increased supply is offering buyers more choices and less pressure, others are still experiencing significant competition and bidding wars,’ Mr. Angulo went on.
At the current sales pace, Miami has inventory for 5.7 months of single family homes and 8.1 months of condominiums. Compared to the third quarter of 2013, the supply has increased by 13.5% and 33.6% respectively, partly a result of falling condominium sales. A balanced market between vendors and buyers is usually said to mean between six and nine months of inventory, meaning that while the condominium market is becoming a little too buyer-friendly, single family homes remain something of a seller’s market.
Miami’s situation as a favourite US retirement location and a target of choice for foreign investors means that it sees a far higher than average number of cash sales, Since demand shows no sign of slowing for single family homes, the property market in Miami is likely to remain buoyant into the new year and beyond.