Median sales price in Miami-Dade in September was up considerably from a year ago, though housing inventory remains tight.

By Peter Ricci

Miami median sales price rose yet again in September, marking the 10th consecutive month that home prices have risen in the city’s real estate market.

According to the latest stats from the Miami Association of Realtors (MAR), median sales price for condos rose 36.2 percent from September 2011, and single-family home sales price increased by 8.6 percent.

Median Sales Price and Residential Sales

Undoubtedly, the two factors driving the steep rise in median sales price are Miami-Dade’s strong residential sales and its dwindling housing inventory:

• Housing inventory for residential listings fell 24 percent year-over-year in September, and 1.4 percent from August; currently, housing inventory is just 4.3-months supply, nearly two months below healthy averages.
• As a result, total residential sales have fallen; from last year, they were down 3.4 percent in Miami-Dade, and 6.7 percent for condos. Single-family home sales, though, did increase 1.6 percent.
• Also, residential properties in Miami-Dade are selling extremely quickly. Median days on the market was just 43 in September, down from historic averages of 90 to 120 days (the national level is 70 days).

Distressed Sales and International Homebuyers

Distressed sales continued to make up a sizable share of residential sales in September, accounting for 47.4 percent of all sales in Miami-Dade, which is down from 59 percent in September 2011 but up from 45.8 percent in August.

Also, cash remains king in the Miami-Dade market, financing 62.4 percent of total closed sales in September (which is virtually unchanged from August and September 2011, and double the national rate). Nearly 90 percent of international homebuyers in Florida use all-cash for their purchases, so the sustained level of cash sales suggests a continued foreign presence in Miami’s housing market.

Martha Pomares, the 2012 chairman of the board for MAR, said the current market conditions make Miami a seller’s market.

“We’ve seen nearly an entire year of significant monthly price increases, which makes now a great time to sell a home,” she said. “Miami properties sell very quickly and draw multiple offers when priced right.”