Miami enjoys a unique status as a top market for both U.S. and international buyers, including investors, second home and vacation buyers, baby boomers and U.S. residents migrating from other states. In addition to its ranking as a top real estate market for foreign buyers, Miami is also a top tourist destination and global center for banking and corporate headquarters. Such appeal will continue to support local market strengthening long into the future.
In Miami-Dade County, limited housing supply and strong demand continue to yield significant home price appreciation unlike in many other major metropolitan areas in U.S. Miami home prices again reflected strong gains in the second quarter, according to the 25,000-member MIAMI Association of REALTORS® and the local Multiple Listing Service (MLS) systems.
Median and Average Sales Prices
The median sales price for single-family homes in Miami-Dade County rose four percent to $185,000 in the second quarter of 2012 compared to the second quarter of 2011, and six percent compared to the first quarter of 2012. The median sales price for condominiums was $153,000, an increase of 28 percent year-over-year and 18 percent compared to the previous quarter.
"Limited supply of single-family homes and condominiums is resulting in robust price appreciation, reflecting the demand that persists for Miami real estate," said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS®. "Miami is a very unique real estate market, attracting both U.S. and international buyers unlike any other market in the U.S. Such appeal will continue to support local market strengthening long into the future."
The median sales price for single-family homes in Miami-Dade County rose four percent to $185,000 in the second quarter of 2012 compared to the second quarter of 2011, and six percent compared to the first quarter of 2012. The median sales price for condominiums was $153,000, an increase of 28 percent year-over-year and 18 percent compared to the previous quarter.
"Limited supply of single-family homes and condominiums is resulting in robust price appreciation, reflecting the demand that persists for Miami real estate," said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS®. "Miami is a very unique real estate market, attracting both U.S. and international buyers unlike any other market in the U.S. Such appeal will continue to support local market strengthening long into the future."
Year-over-year, the average sales prices for single-family homes and condominiums increased 10 percent to $345,191 and 22 percent to $254,045, respectively.
Homes Sales Rise in 2Q
Miami-Dade residential sales – including existing single-family homes and condominiums – increased two percent in the second quarter, from 6,768 to 6,898, compared to a year earlier. Following a record-breaking year in 2011, sales in Miami remain at historically strong levels. In the second quarter, Miami sales of existing single-family homes increased four percent compared to a year earlier and 17 percent compared to the previous quarter. The sales of existing condominiums increased one percent compared to the second quarter of 2011 and 18 percent compared to the previous quarter.
Miami-Dade residential sales – including existing single-family homes and condominiums – increased two percent in the second quarter, from 6,768 to 6,898, compared to a year earlier. Following a record-breaking year in 2011, sales in Miami remain at historically strong levels. In the second quarter, Miami sales of existing single-family homes increased four percent compared to a year earlier and 17 percent compared to the previous quarter. The sales of existing condominiums increased one percent compared to the second quarter of 2011 and 18 percent compared to the previous quarter.
"There is obvious and strong demand for Miami properties, despite the dwindling supply," said MIAMI Association of REALTORS® Residential President Patricia Delinois. "We are seeing multiple offers for many properties, which are taking considerably less time to sell. Still many qualified buyers are being denied the dream of homeownership due to unnecessarily tight mortgage underwriting standards."
Inventory Levels
Total housing inventory in Miami-Dade County decreased 28 percent year-over-year and 6.1 percent compared to the previous quarter. Currently, there are 11,497 active listings in Miami-Dade County.
Total housing inventory in Miami-Dade County decreased 28 percent year-over-year and 6.1 percent compared to the previous quarter. Currently, there are 11,497 active listings in Miami-Dade County.
U.S. Median Price Rises, Sales Decrease
Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country, according to the latest quarterly report by the National Association of REALTORS®.
Median existing single-family home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country, according to the latest quarterly report by the National Association of REALTORS®.
The median existing single-family home price rose in 110 out of 147 metropolitan statistical areas (MSAs) based on closings in the second quarter in comparison with same quarter in 2011; three areas were unchanged and 34 had price declines. In the first quarter of 2012 there were 74 areas showing price gains from a year earlier, while in the second quarter of 2011 only 41 metros were up.
A separate breakout of income requirements to buy a home on a metro basis shows a wide range of conditions, but most buyers had ample income in the second quarter assuming they could meet mortgage credit standards.
Lawrence Yun, NAR chief economist, said home prices are set to rise in even more markets during upcoming quarters. "It's most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners. Inventory has been trending down and home builders are still under-producing in relation to growing demand," he said. "Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight."
The national median existing single-family home price was $181,500 in the second quarter, up 7.3 percent from $169,100 in the second quarter of 2011. This is the strongest year-over-year increase since the first quarter of 2006 when the median price rose 9.4 percent, but even with the gain the current price is 20.1 percent below the record set in 2006.
The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed higher by a relatively small share of upper-end transactions.
Distressed homes – foreclosures and short sales which sold at deep discounts – accounted for 26 percent of second quarter sales, down from 33 percent a year ago.
Total existing-home sales, including single-family and condo, slipped 0.7 percent to a seasonally adjusted annual rate of 4.54 million in the second quarter from 4.57 million in the first quarter, but were 8.6 percent above the 4.18 million pace during the second quarter of 2011.
At the end of the second quarter there were 2.39 million existing homes available for sale, which is 24.4 percent below the close of the second quarter of 2011 when there were 3.16 million homes on the market. There has been a steady downtrend since inventories set a record of 4.04 million in the summer of 2007.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is historically high. "Home buyers today can stay well within their means. Record low mortgage interest rates and an over-correction in home prices have opened the door to many potential buyers," he said.
"What we need now is additional inventory in the lower price ranges, so we hope banks will be releasing more foreclosure inventory into the market. With gains apparent in all of the price measures, banks also should have more confidence in expanding mortgage credit to home buyers using safe but sensible standards," Veissi said.
MIAMIRE.COM
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