The Miami real estate market continues to strengthen as a result of increased sales and stabilizing home prices. In the Miami MSA, there was a 33 percent increase in condominium sales in June 2010 compared to June 2009 and a 58 percent increase compared to two years ago, according to the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service (SEFMLS).
The sales of existing single-family homes in the Miami MSA increased one (1) percent in June 2010 compared to June 2009 and increased 55.2 percent compared to June 2008. The Miami real estate market has experienced rising sales since August 2008, posting increases each of the last 23 months. Statewide sales increased 33 percent for condominiums and 17 percent for single-family homes.
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 5.1 percent from the previous month but increased 9.8 percent from June 2009, according to the National Association of Realtors (NAR).
The median sales price for single-family homes in the Miami metropolitan statistical area (MSA) in June dropped four (4) percent to $203,300 compared to a year ago but increased 3.4 percent from a month earlier. The median sales price for condominiums in June was $128,800 down nine (9) percent from a year earlier and up two (2) percent from the previous month. Statewide median sales prices decreased five (5) percent for single-family homes and 16 percent for condominiums.
“Despite the expiration of the homebuyer tax credit, demand for South Florida residential real estate continues,” said Terri Bersach, 2010 Chairman of the Board of the Realtor Association of Greater Miami and the Beaches. “South Florida is a unique city and marketplace, and our market has definitely rebounded. We expect Miami’s worldwide appeal to continue to drive sales and home values and to reveal that the market over-corrected itself after the record-breaking boom of the last decade.”
Average Home Sales Price Increases
The average sales prices, which have increased consistently over the last few months, for residential properties rose again considerably in June. According to the SEFMLS, the average sales price for residential properties that sold in Miami-Dade County in June increased 7.2 percent from the previous year to $359,532 for single-family homes and 14.6 percent to $281,146 for condominiums.
Days on the Market and Inventory Levels Decrease
The inventory of residential listings in Miami-Dade County according to the SEFMLS has dropped 13 percent from 28,956 to 25,190 since June 2009. The number of active single-family home listings is 16 percent lower compared to a year ago, while active condominium listings have dropped 11.4 percent. Compared to last month, the total inventory of homes increased 1.9 percent. The average days a property stays on the market decreased 17.4 percent for single-family homes and 10.9 percent for condominiums. Nationally, total housing inventory at the end of June rose 2.5 percent from the previous month.
According to the recently-released 2010 Profile of International Home Buying Activity by NAR, Florida continues to be the top state by far for international buying activity. RAMB Residential President Oliver Ruiz says this factor will help the local market strengthen further both in the near and distant futures.
“International buyers have consistently been an important force in the local real estate,” said Ruiz. “International buyers continue to take advantage of all Miami has to offer, as a world-class city with affordable properties, including vacation, second, and ocean front homes. These foreign buyers are mostly purchasing condominiums and are largely cash buyers.”
The Realtor Association of Greater Miami and the Beaches was chartered by the National Association of Realtors in 1920 and is celebrating its 90th year of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of three organizations, the Residential Realtor Association of Greater Miami and the Beaches, the Realtors Commercial Alliance and the International Council of Greater Miami and the Beaches, RAMB represents over 12,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. RAMB’s official Web site is www.miamire.com.