Total cumulative pending home sales in Miami-Dade County increased 28 percent in January compared to a year earlier, from 8,388 to 10,698, and 2.5 percent, from 10,437, compared to the previous month according to the MIAMI Association of Realtors and the Southeast Florida Multiple Listing Service (SEFMLS).
“Over the last few months, we have seen pending and closed sales gain momentum while inventory levels continue to drop, says Jack H. Levine, 2010 chairman of the board of the MIAMI Association of Realtors. “This trend in rising sales, particularly for condominiums, coupled with significant reductions in housing inventory, is a very positive sign for the local market. We expect this trend to continue as the job market, economy, and consumer confidence improve.”
Pending Condominium Contract Activity on the Rise
Pending sales of condominiums in Miami-Dade County continue to outperform that of single-family homes. In January, condominium pending sales increased a significant 37.2 percent compared to a year ago, from 4,647 to 6,376 and increased 3.3 percent from 6,173 the previous month. Pending sales of single-family homes in January increased 15.531 percent from the previous year, from 3,741 to 4,322, and 1.4 percent from the previous month, when pending single-family home sales totaled 4,264.
Significant Reduction in Housing Inventory
The Miami-Dade real estate market continues to experience drops in housing inventory. Inventory for all housing types has dropped 47 percent since mid-2008 and eight percent compared to a year ago. Just over the last month, inventory in the county dropped six percent, pointing to increased demand for local properties.
“Local buyers are taking advantage of the many opportunities the local market offers, including high affordability that continues to boost contract activity,” says 2011 MIAMI Association of Realtors Residential President Ralph E. De Martino. “International buyers continue to continue to have a significant impact in rising sales and declining inventory in the local market.”
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.