Miami, FL – For the sixth consecutive month, Miami home prices again posted strong gains in May. The median sales price of condominiums in Miami-Dade County increased 22 percent to $151,000 compared to a year earlier, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose six percent to $190,000.
“Miami home prices have experienced double-digit appreciation consistently over the last six months,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “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.”
In May the average sales price for condominiums in Miami-Dade County increased 23 percent to $310,454. The average sales prices for single-family homes rose nine percent to $368,619.
Florida Statewide Home Prices
Statewide median sales prices in May increased 8.9 percent to $147,000 for single-family homes and 14.3 percent to $112,000 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $182,600 in May, a 7.9 percent increase from May 2011.
Miami Home Sales Rise in May
The sales of 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.
Statewide sales of existing single-family homes totaled 18,723 in May 2012, up 7.5 percent compared to a year ago. Statewide condominium sales totaled 9,995, up 5.4 percent from those sold in May 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 1.5 percent from April and were 9.6 percent higher than they were in May 2011, according to the National Association of Realtors (NAR).
“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.”
Months Supply of Inventory Sharply Declines
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.
Distressed Sales Decrease
Strong demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In May, 46 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 57 percent in May 2011 and 47 percent the previous month.
International Buyers Fuel Cash Sales
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.
Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.
About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating more than 90 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is www.miamire.com.