The Miami real estate market, long one of the USA’s most robust, continued to see rising prices in the second quarter of 2014, according to the latest estate agents’ report. The data, from the Miami Association of Realtors, shows a strong demand overall, but particularly good markets for single-family homes priced between $200, 000 and $400, 000.
The median sales price for a Miami-Dade County home was $245, 000 in 2014’s second quarter, showing a jump of 8.9% compared to last year. Meanwhile, the prices of condominiums rose by 5.6% year-on-year to $190, 000.
The market has seen prices increase for ten consecutive quarters now, and performance has been strong for both single-family homes and condominiums.
What’s behind the Miami area’s booming real estate market is demand from both domestic and overseas buyers, meaning there’s always more demand.
‘While supply is growing and creating more balance between buyers and sellers, inventory in certain price points and market segments remains tight, particularly of single family homes,’ observed Liza Mendez, chairwoman of the board of MAR.
Across Florida, prices are rising and the real estate market is robust. The median sales price for a single family home across Florida rose by 5.3% year-on-year to $180, 000, while for condos it rose 10.1% to $142, 000.
In Miami-Dade county, meanwhile, the focus on Ms. Mendez’ price points is clear. While the increase in inventory sold in the second quarter of 2014 was negligible at 0.9%, that is in comparison with Q2 2013 which showed record sales activity. Zoom in, and the figures tell a slightly different story.
Sales that don’t appear to have moved much actually shifted in two opposite directions simultaneously. Sales of single family homes rose significantly – by 4.9% – while sales of condominiums decreased by 5.2%, despite rising condominium prices. That trade-off – rising prices, falling sales, or vice versa – is what you’d expect to see in a stable market. By contrast, prices and sales rising at once shows strong growth. It’s the market in single family homes that’s really booming in Miami.
‘As the Miami real estate market continues to normalize and perform in a healthy manner, there are increased opportunities for all types of buyers. While inventory is still limited depending on the area and price range, buyers generally have more to choose from and prices remain at affordable 2003 levels,’ says Francisco Angulo, residential president of MAR.
At the current pace of sales, inventory for single family homes stands at 5.5 months and that or condominiums at 7.8 months. Compared to the second quarter of 2013, inventory has risen by significant amounts – 13.5% for single family homes, 33.6% for condominiums. When inventory, sales and prices rise at the same time, that’s a sure sign of boom times; meanwhile some of the additional increase in condominium inventory may be a result of falling sales in that sector, traditionally one of Miami’s strongest.
Sales that were all cash fell slightly, indicating an increase in purchases that stretched the buyer’s finances – homes or living in, not investments. That’s another good sign for the Miami real estate market.