A new joint report suggests the local real estate market is staying the recovery course.

Miami’s real estate market, as it has been since January, continued showing strong signs of improvement in May, according to a collaborative effort from the Miami Association of Realtors and the local Multiple Listing Service, or MLS.

The city, which has been slowly working towards a buyer-seller balance, again posted increases in median sale prices for both single-family homes and condominiums, the two organizations confirm. However, overall prices still remain at affordable 2003 levels.

In May, the median sale price for single-family homes increased 12.6 percent, up nearly $30,000 from the same time last year, which marks the 30th consecutive month of growth. Average sale price for single-family homes also increased by 21.4 percent.

A Strengthening Market

The joint report went on to detail several other changes in the local market, many of which lend credence to a strengthening industry. Some findings include:

• Median sales price for condominiums increased by 3.6 percent, the 35th consecutive month of growth, while average sale price increased by 3.8 percent, a $14,000 rise since the same time last year.
• Residential sales decreased 6.4 percent in Miami-Dade county. Those losses were driven largely by the 10.9 percent decline in condominium sales.
• A little over 94 percent of homes sold in May did so at original list price. The median number of days on the market for single-family homes before selling was 47 days.

Is Miami Starting to Balance Out?

Ask any real estate professional in Miami about the local market, and they’ll undoubtedly tell you how different the city is from the rest of the country. It’s not a matter of pride; it’s simply the truth.

Miami’s local market is ruled not by the natives but by the investment community, many of who are foreign and have the resource to make all-cash offers. The challenges that come with such a setup are learning how to balance buyer demand, which is consistently high, with housing supply, which is consistently low. In the past, bridging the considerable gap between the two has proven difficult, but many, such as current MAR Chairman Liza Mendez, believe Miami is close to striking an acceptable equilibrium.

“The Miami real estate market continues to perform well as demand remains historically strong but while fueling more balanced price growth,” Mendez say. “Sales are consistent with 2013 activity, which set a third consecutive sales record, and properties are selling rapidly and close to asking price.”

It looks Miami is heading towards a full recovery, but the question still remains: How much longer will it take?