60 Percent of
Residential Sales All Cash
for single-family homes in Miami-Dade County continued in June amid very tight
supply that is fueling double-digit price appreciation, according to the
29,000-member MIAMI Association of REALTORSÂ® and the local Multiple Listing
Service (MLS) system.
home sales surged 25 percent, up from 935 in June 2012 to 1,170 this June.
Condominium sales increased 5.5 percent, up from 1,421 in June 2012 compared to
1,499 last month.
estate market performance marks 19 consecutive months of appreciation for both
single-family homes and condominiums. The median sales price of single-family
homesntly increased each month over the last two years, rose 15.9 percent to
$185,500 compared to a year earlier and 3.1 percent compared to the previous
mont increased 21.1 percent to $230,000 year-over-year and 3.6 percent compared
to the previous month. The median sales price of condominiums, which has
real estate market continues to gain momentum fueled by intense demand coupled
with very tight supply particularly in the lower price ranges due to
investors," said 2013 Chairman of the Board of the MIAMI Association of
RealtorsÂ® Natascha Tello. "Miami real estate is definitely thriving.
Factors such as population growth and foreign buyers are driving record sales
for the third consecutive year, which will continue to result in strong price
appreciation until more supply comes on the market."
of existing single-family homes, townhomes, condominiums, and co-ops decreased
1.2 percent from May but were 15.2 percent higher than they were in June 2012,
according to the National Association of RealtorsÂ®.
Lawrence Yun, NAR
chief economist, said there is enough momentum in the market, even with higher
interest rates. "Affordability conditions remain favorable in most of the
country, and we're still dealing with a large pent-up demand," he said.
"However, higher mortgage interest rates will bite into high-cost regions
of California, Hawaii and the New York City metro area market."
Compared to last year's figures, the average sales price for single-family
homes in Miami-Dade County in June increased 27.1 percent to $509,515, while
the average sales price for condominiums increased 9.9 percent to $351,608.
median existing-home price for all housing types was $214,000 in June, a 13.5 percent
increase from June 2012, according to the National Association of RealtorsÂ®
at the end of June increased 5.1 percent, from 12,544 to 13,179, compared to
June 2012, when the market was already experiencing a housing shortage. Despite
the slight increase due to more new listings coming on the market, current
active inventory remains insufficient to satisfy intense demand for Miami
properties. Inventory of single-family homes decreased 2.8 percent to 5,006
active listings, while that of condominiums increased 10.5 percent to 8,173
active listings. At the current sales pace, there is 4.9 months of supply of
single-family homes and 5.8 months of supply of condominiums in Miami-Dade,
representing a decrease of 15.6 percent and an increase of 2.8 percent
respectively compared to year-ago levels.
months supply of inventory in Miami reflects a seller's market, which means
buyers have to be more focused and savvy while sellers can sell fast if
properties are priced right," said 2013 MIAMI Association of REALTORSÂ®
Residential President Fernando I. Martinez. "Properties that are
competitively priced will sell very rapidly, particularly in the lower price
points, and will generate multiple offers close to or above asking price."
inventory nationally increased 1.9 percent at the end of June but remains 10.1
percent below year-ago levels, representing a 5.2-month supply.
Sales Continue to Decline
distressed properties continue to sharply decline in Miami-Dade County, as
prices for both REOs and short sales also rose significantly. In June, only
36.7 percent of all closed residential sales in Miami-Dade County were
distressed, including REOs (bank-owned properties) and short sales, compared to
44.4 percent in June 2012. Nationally, distressed homes accounted for 15
percent of June sales.
The median sales
price of single-family home and condominium foreclosures in Miami-Dade
increased 9.7 percent to $141,500 and 29 percent to $116,100 respectively.
County, 60 percent of total closed sales in June were all-cash sales compared
to 65 percent in June 2012. All-cash sales accounted for 42.2 percent of
single-family home and 73.8 percent of condominium closings, compared to a year
ago when cash sales were 46.1 percent and 77.4 percent of closed sales
respectively. Since nearly 90 percent of foreign buyers in Florida purchase
properties all cash, this reflects the much stronger presence of international
buyers in the Miami real estate market. By comparison all-cash sales nationally
accounted for 31 percent of transactions in June, down from 33 percent the
previous month and 29 percent in June 2012.