In the Miami Metropolitan Statistical Area (MSA), the median sales price of single-family homes in October increased 12 percent to $199,100 from a year earlier, according to the MIAMI Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS). Miami was one of only three home markets and the only major metropolitan area in Florida posting an increase for median sales price of single-family homes. Compared to the previous month, the median sales price rose six percent.
“Rising median sales prices reflect strengthening and stability of the Miami real estate market,” said Jack H. Levine, 2010 Chairman of the Board of the MIAMI Association of Realtors. “Miami continues to outperform the rest of the state and the nation due to strong demand from all types of buyers.”
Unlike single-family homes, the median sales price of condominiums in the Miami MSA dropped 22 percent in October, to $107,700, compared to the same month last year but increased more than eight percent compared to the previous month.
Statewide median sales prices decreased three percent to $136,600 for single-family homes and 22 percent to $82,400 for condominiums.
Home and Condominium Sales
The sales of existing single-family homes in the Miami MSA decreased only four percent to 546 compared to October 2009 but were 21 percent higher than they were in October 2008. The Miami real estate market experienced rising residential sales since August 2008, posting increases for 23 consecutive months.
In the Miami MSA, condominium sales increased 17 percent to 757 compared to October 2009 and a 72 percent increase compared to two years ago, when sales were already rising. This was the highest increase in condominium sales of any major metropolitan area in Florida.
Statewide sales dropped five percent to 5,147 for condominiums and 21 percent for single-family homes to 11,888. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 2.2 percent from September and are 25.9 percent below October 2009, according to the National Association of Realtors (NAR).
Average Home Prices
Average sales prices, which have increased consistently over the last few months, decreased in October. According to the SEFMLS, the average sales price of properties that sold in Miami-Dade County in October decreased a negligible 2.1 percent from the previous year to $273,697 for single-family homes and decreased 17 percent to $195,095 for condominiums. However, compared to the previous month, the average sales increased two percent for single-family homes and 3.4 percent for condominiums.
Short sales and foreclosures are continuing to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county.
Days on the Market and Inventory Levels Continue to Drop
The inventory of residential listings in Miami-Dade County dropped 7.1 percent from 26,134 to 24,290 since November 2009, according to the SEFMLS. Compared to last month, the total inventory of homes dropped one percent. Compared to October 2009, the average days a property stays on the market decreased 12.4 percent to 90 for single-family homes and 17.4 percent to 106 for condominiums.
Nationally, total housing inventory at the end of October fell 3.4 percent from the previous month.
“We continue to observe positive signs in the Miami market, and international buyers continue to fuel market strengthening,” said 2010 MIAMI Association of REALTORS Residential President Oliver Ruiz. “While distressed properties continue to affect home values, especially for condominiums, we expect home values to improve as excess inventory is absorbed.”