August 1, 2012
The total number of listings, including single-family homes and condominiums, that pended* in Miami-Dade County during the month of June increased 22 percent, from 2,730 to 3,344, year-over-year but declined 13 percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.
"Despite low levels of housing inventory in Miami, pending sales activity continue to point to strong future sales," said Martha Pomares, 2012 chairman of the board of the MIAMI Association of REALTORS. "Dwindling supply coupled with rising contract activity will continue to drive price appreciation in Miami-Dade."
Total Cumulative Pending Sales
Total cumulative pending home sales** – including single-family homes and condominiums - in Miami-Dade County currently are 2.1 percent above what they were a year ago, up from 12,014 to 12,272, and .8 percent above what they were the previous month, up from 12,177.
Total cumulative pending home sales** – including single-family homes and condominiums - in Miami-Dade County currently are 2.1 percent above what they were a year ago, up from 12,014 to 12,272, and .8 percent above what they were the previous month, up from 12,177.
Pending sales of single-family homes were seven percent above what they were a year earlier, up from 5,036 to 5,380, and one percent above the previous month, when pending single-family homes sales totaled 5,326. Pending sales of condominiums were 1.2 percent lower than they were a year earlier, down from 6,978, and up one percent below what they were the previous month, up from 6,851.
"The Miami real estate market is a focal point for buyers and investors who are drawn to the favorable market conditions, the attractive investment opportunities, and the exciting local lifestyle," said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. "Both international and U.S. investors continue to boost the Miami real estate market and economy as evidenced by strong sales levels and double-digit price appreciation."
Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, declined 1.4 percent to 99.3 in June from 100.7 in May, according to the National Association of Realtors. The index is 9.5 percent higher than the 90.7 index reported in May 2011.
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
*"Pended sales" are defined as only the sales that pended during a particular month
**"Total cumulative pending sales" refer to all sales cumulatively pending at the end of a particular month.
*"Pended sales" are defined as only the sales that pended during a particular month
**"Total cumulative pending sales" refer to all sales cumulatively pending at the end of a particular month.
Miami Real Estate Remains Affordable Despite Rising Prices
The Miami real estate market continues to strengthen following a year of records sales and subsequent appreciation. While the local market has experienced double-digit price increases over the last six months, Miami remains highly affordable particularly when compared to other major metropolitan areas in the U.S. and global cities worldwide.
The Miami real estate market continues to strengthen following a year of records sales and subsequent appreciation. While the local market has experienced double-digit price increases over the last six months, Miami remains highly affordable particularly when compared to other major metropolitan areas in the U.S. and global cities worldwide.
An analysis of home prices in Miami year-to-date, reveal that the majority of residential properties are selling for less than $200,000 despite rising prices.
Price Analysis
Since December of last year, 48 percent of Miami homes – including both single-family had condominiums - sold for $150,000 or less. In 2011 and 2010, homes selling for $150,000 or less accounted for 54 percent and 53 percent respectively of total sales. Since December 2011, 62 percent of homes in Miami sold under $200,000. In comparison, 67 percent of all homes that sold, including single-family and condominiums, in 2010 and 2011 were under $200,000.
Since December of last year, 48 percent of Miami homes – including both single-family had condominiums - sold for $150,000 or less. In 2011 and 2010, homes selling for $150,000 or less accounted for 54 percent and 53 percent respectively of total sales. Since December 2011, 62 percent of homes in Miami sold under $200,000. In comparison, 67 percent of all homes that sold, including single-family and condominiums, in 2010 and 2011 were under $200,000.
Luxury homes continue to account for a small percentage of total sales. In the high-end market, 4 percent of both single-family homes and condominiums sold for $1million or more, which equals the same percentage of sales in this price range in both 2010 and 2011.
Housing AffordabilityThe National Association of Realtors latest Affordability Index of Existing Single-Family Homes for Metropolitan Areas shows Miami is very competitive in terms of affordability. Based on the relationship between median home price, median family income and average mortgage interest rate, a composite index of 100 is defined as the point where a median-income family household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments.
Miami's index was 125.3 in the fourth quarter of 2011, when prices had already started to rise. This means in Miami a median-income family household has more than enough income to qualify for the purchase of median-priced home.
In contrast the indices for other major metro areas were much lower, reflecting less affordability:
| U.S. Metro Area | Index |
| Austin, Texas | 104.6 |
| Denver, Colorado | 107.3 |
| Charlotte, North Carolina | 96.5 |
| Eugene, Oregon | 78.8 |
| **Miami-Fort Lauderdale** | 125.3 |
| San Diego, California | 65 |
| San Francisco, California | 66.2 |
| New York City, New York | 75.7 |
| Portland, Oregon | 96.8 |
Miami offers affordable real estate and a lifestyle like no othe
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