Total cumulative pending home sales in Miami-Dade County increased 22 percent in February compared to a year earlier, from 9,164 to 11,182, and 4.5 percent, up from 10,698, compared to the previous month according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
“Current statistics for pending sales reflect the positive performance of the South Florida real estate market over the last few months,” says Jack H. Levine, 2011 chairman of the board of the MIAMI Association of Realtors. “We have seen year-over-year increase for pending sales for nearly one year. Pending sales have also increased month-over-month 10 out of the last 13 months.”
Pending Condominium Contract Activity on the Rise
Contrary to recent trends, month-over-month pending sales of single-family homes in Miami-Dade County outperformed that of condominiums. Still year-over-year sales of condominiums saw a larger increase than that of single-family homes. Pending sales of single-family homes increased a 16 percent compared to a year ago, from 4,042 to 4,685, and increased 8.4 percent from 4,322 the previous month. Pending sales of condominiums in February increased 26.9 percent from the previous year, from 5,122 to 6,497, and two percent from the previous month, when pending condominium sales totaled 6,376.
“Current pending sales trends are positive indications of future local sales,” said 2011 MIAMI Association of Realtors Residential President Ralph E. De Martino. “We continue to see strong demand from international and U.S. buyers. Buyers from the Northeast, who have experienced a harsh winter season, in particular are exhibiting heightened demand for local properties.”
Nationally, pending home sales decreased in January for the second straight month, according to the National Association of Realtors. The Pending Home Sales Index, a national forward-looking indicator, declined 2.8 percent to 88.9 based on contracts signed in January from a downwardly revised 91.5 in December. The index is 1.5 percent below the 90.3 level in January 2010.
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.