Following record breaking sales activity for nearly three years, the Miami real estate market saw unprecedented growth in the third quarter of 2013 as demand for local real estate and limited supply continue to fuel double digit growth in prices.
The latest figures from the Miami Association of Realtors shows that there was a significant 21.2% and 8.7% increase in the sales of homes and condos, respectively, in the third quarter of 2013 compared with the same period in 2012.
The growth in home sales was driven by a 89.5% increase in home sales $250,000 to $299,999 and a 67.7% growth in sales $600,000 to $999,999 when compared to the same time in 2012. Meanwhile, condo sales were driven by the 50.8% growth in condo sales $250,000 to $299,999 and a similar surge of 46.9% in condos $400,000 to $599,999 relative to the third quarter of last year.
‘The surge in sales of Miami homes and condos is driven by a robust demand for real estate from international buyers from worldwide markets and large numbers of US buyers from other states,’ said Natascha Tello chairman of the board of the Miami Association of Realtors.
‘The third quarter statistics reflect a significant strengthening of our local real estate market with more homes being sold faster than last year,’ she pointed out, adding that association’s initiatives to increase inventory and focus on assisting members to get more listings has made progress along with some additional distressed properties coming on the market.
Home and condo listings also grew by double digits in the third quarter. There were 5,937 new single family home listings, growth of 15.3% relative to the same period last year. Meanwhile, new condo listings were stronger with an increase of 20.5% from 6,872 in the third quarter of 2012 to 8,282 this year.
Median sales price for homes in Miami-Dade County was $230,000, an increase of 21.3% compared to last year and 12% relative to the previous quarter. The median sales price for condos rose 26.6% to $183,600 in the third quarter compared to the second quarter of 2013. Third quarter price increases mark seven quarters of increases for both single family homes and condominiums.
In addition, compared to last year, the average sales prices for single family homes and condominiums increased 8.1% to $381,517 and 19.3% to $329,418, respectively.
‘Despite more new listings coming on the market, supply remains tight, particularly for properties in lower price points, for current level of demand for Miami properties. Robust sales will continue to drive price appreciation in the Miami market,’ said the association’s residential president Fernando Martinez.
The data also shows that in the third quarter, 59.3% of closed sales were all cash compared to 63.3% a year ago. All cash sales were 45% of single family home closings and 71% of all condominium sales. Since nearly 90% of foreign buyers pay cash, this reflects Miami’s position as a top market for foreign buyers. Miami has a significant percentage of international buyers, generating many more cash transactions than the national average.
Homes were sold much faster during the third quarter of 2013 compared to the previous year. The median duration of a home listing during the last quarter was 37 days compared to 43 days during the same period last year, a significant decrease of 14%. Meanwhile, condo listing durations were comparable to 2012 figures at a median of 46 days compared to 43 last year.
Total third quarter active listings in Miami-Dade County totalled 14,273, representing an increase of 14.2%. At the current sales pace, this reflects 4.9 months of inventory for single family homes and 6.3 for condominiums. Months supply of inventory declined 12.5% for single family homes and increased 11% for condominiums compared to the third quarter of 2012.