According to the new Douglas Elliman Report, increased sales activity and slowly rising prices have had a positive impact on Miami’s residential real estate market during the second quarter of 2011. The comprehensive report analyzes regional data on condos and single-family homes in Miami-Dade’s coastal communities. The report has also been expanded to include a breakdown of distressed and non-distressed sales, defined as foreclosure and short sales. Douglas Elliman commissioned the report and Miller Samuel, a long-trusted industry source, produced it.
“We’re pleased to note that the Miami non-distressed real estate market is beginning to stabilize after years of decline,” said Vanessa Grout, President and CEO of Douglas Elliman Florida, in a press release. “This has been the most active market since 2006 and there are indications that prices, while mixed, will continue to trend higher in favored areas.”
The South Beach submarket is especially notable with both closed prices and sales up compared to the prior quarter. Sales jumped as prices fell in Miami Beach and Downtown Miami. In North Miami-Dade, prices were mixed while the number of sales saw a dramatic upturn. The number of all-cash buyers account for 78 percent of condo distressed sales, (presumably for investment) while in the non distressed market, all-cash buyers, (mainly looking for second-homes) account for 71 percent of purchases in the high-end condo market.
Non-distressed sales of condos and single-family homes represent a different housing stock, consistently about 35 percent larger in size. Non-distressed prices are up from 6 percent to 9 percent.
Distressed sales represented 54 percent of all sales, and fell from 65 percent of all sales last quarter. This indicates that lenders are not putting all bank-owned properties on the market. Distressed prices are down 8 percent to 14 percent.
According to The New York Times, home sales rose 16 percent from 2010-creating the best spring selling season in Miami since 2007; the article also states that prices are increasing in some cases, with 439 sales of at least $2 million from January through June of the year-a 13 percent increase from 2010.
In addition, according to Condo Vultures, there are now less than 48,000 properties for sale compared to 108,000 in 2008, mid-crisis.