Overall sales in the city fell 14 percent in August, but the market continues to gain more balance.

When compared to 2013 numbers, August in Miami represented a month of stagnation and, to some extent, decline. However, considering the uptick in development, as well as an increased interest for new construction properties, Miami’s losses are, at most, negligible, and the city remains one of the country’s hottest real estate markets, according to the Miami Association of Realtors and the local MLS system.

In regards to single-family homes, sale prices again increased, this time by 6.4 percent. However, despite gains, prices remain close to affordable 2004 levels, the report found. On the flip side, the median sale price for condominiums decreased by 4.2 percent year-over-year, which bodes well for a market that has been recently described as “overvalued.” This decline marks the first of such in more than three years.

More of the Same

Apart from the dip in condominium sale prices, the joint report told a similar story in August as in July and June.

• Single-family home sales in Miami experienced 4.4 percent year-over year decreases, bringing units sold from 1,210 to 1,157.
• Condominium sales in Miami declined a much more pronounced 21.4 percent year-over-year, bringing units sold down to 1,252.
• Overall, residential real estate sales in the city fell 14 percent year-over-year.

Some Wrinkles to Iron Out

August was a month of meeting expectations in Miami, which bodes well for a market ruled by cash sales and limited inventories.

“The Miami real estate market continues to normalize as the new construction sector gains momentum and generates strong demand for additional new supply, impacting the existing condominium market,” Liza Mendez, MAR 2014 chairman, said. “Despite declines in sales and condo prices, the performance of the Miami residential market continues to be comparable to what it was during periods of record sales activity.”

However, MAR 2014 Residential President Francisco Angulo warns that some price points, particularly for single-family homes, still suffer persistent demand and low inventory. New construction is helping to fill the gaps in existing inventories but have not yet matched pace with buyers, which may result in even higher prices.

Still, overall, the market is looking better and better with each new month.