Miami house prices climbed in May for the sixth month in a row, according to the Miami Association of Realtors.
The median sales price of condos in Miami-Dade Country jumped by 22 per cent compared to 2011, the MAR report revealed this week. The average price of single-family homes also rose by 6 per cent to $190,000. On a monthly scale, the average price for condos was 23 percent higher than April, while single-family homes increased by 9 per cent.
“Miami home prices have experienced double-digit appreciation consistently over the last six months,” Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS, commented. “Strong demand for Miami properties continues to fuel this dramatic market strengthening that has yielded limited supply and will result in home prices increasing further.”
Sales were up too. The number of completed transactions for existing condominiums in Miami-Dade increased 10 percent in May, from 1,420 to 1,564, compared to record sales levels in May 2011. Sales of single-family homes rose 14 percent, from 875 to 993, compared to May 2011.
In Miami-Dade County, 64 percent of total closed sales in May were all-cash sales, compared to 60 percent in May 2011 and 63 percent the previous month. Cash sales accounted for 43 percent of single-family and 78 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash. Nationally, all-cash sales fell to 28 percent in May – from 29 percent in April and 30 percent in May 2011 – reflecting the stronger presence of international buyers in the Miami real estate market.
“While international buyers continue to play a major role in boosting the Miami real estate market, there is also great demand from local and migrating U.S. buyers,” said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. “Population drives real estate, and Florida, one of the fastest growing states, is set to surpass NY in population by 2020 to become the third most populous state in the nation.”
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 33 percent from 16,943 to 11,403. Compared to the previous month, the total inventory of homes decreased three percent. Currently, there are 4.2 months of supply in Miami-Dade. Total housing inventory nationally decreased 0.4 percent at the end of May and was 20.4 percent below year-ago levels, which represents a 6.6-month supply at the current sales pace.