The Magic City ended 2014 well, but several problems are still likely to plague the South Florida market in the new year.

Miami’s housing market performed well in the final months of 2014, leveraging a surge of consumer confidence and widespread demand into improved sales and prices, according to a new report from the Miami Association of Relators and the local MLS.

In last year’s fourth quarter, median sales price for single-family homes jumped 4.7 percent year-over-year to settle at just over $246,000, researchers found, which is significantly higher than the national median of $208,700. Median price for condominiums experienced a similar boost, rising 8.6 percent to $190,000, but remained slightly below the $203,3000 national median price.

The recent sales price increases represent 12 consecutive quarters of growth for both single-family homes and condos.

Inventory is Up and Homes are Selling Slower

The joint report took an inside look at much of Miami’s real estate landscape. Here are a few of the report’s more significant findings:

• At the current sales pace, the number of active listings represents 5.6 months of inventory for single-family homes and 8.4 for condominiums. Compared to the fourth quarter of 2013, the months supply of inventory for condominiums increased 19.7 percent.
• The inventory for single-family homes decreased 0.2 percent compared to the same period from last year. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
• The median days on the market of single-family home listings during the fourth quarter was 45 days compared to 40 days during the same period last year, an increase of 12.5 percent. Similarly, the median days on the market for condominium listings were 58 days compared to 47 last year, an increase of 23.4 percent.

Buyer Demand is Strong

How Miami finished out 2014 provides a unique look into how the market is likely to maneuver in the early months of 2015.

“We expect Miami home prices to continue to increase in 2015 but at a more moderate pace,” Christopher Zoller, 2015 MAR residential president, said.

Zoller went on to add that the coupling of limited supply with persisting demand has resulted in the continuation of Miami’s seller’s market, saying he expects to see continued residential price growth in the new year, even despite a strong U.S. dollar, which promises to limit international interest.

Strong buyer interest and a renewed confidence was the big driver behind Miami’s recent gains, Carlos Gutierrez, principal Realtor at Gutierrez Group Miami Real Estate and the 2015 MAR president-elect, said.

“Many buyers who were staying on the sidelines are now buying,” he added. “Huge gains in job growth and more solid economic indicators are resulting in more consumers returning to the housing market.”