Miami’s ending the summer hot, according to a new report from the Miami Association of Realtors, which confirmed July as the city’s second-highest month ever for single-family home sales. At a total of 1,354 single-family transactions, July’s figures nearly surpassed the record of 1,390 transactions set in June.
While single-family sales stole attention in MIAMI’s July report, activity across the board was positive. Total existing residential sales rose 7.3 percent year-over-year from 2,632 to 2,825, while existing condominium sales increased 4.8 percent to 1,471. Condo sales are particularly interesting considering the rise of Miami pre-construction condo sales, MIAMI reported.
Single-family home sales surged 10.2 percent year-over-year, driving sales up from 1,229 to 1,354.
Condo Buyers Search for Financing
Maintaining Miami’s current sales pace, the city’s inventory represents a 5-month supply of single-family homes, an 11 percent year-over-year-decrease, and an 8.8-month supply of condos, up from 7.8 months in July 2014.
Strong demand is helping push single-family sales, but sellers are still wary of a once volatile market, and builders, limited by land and expenses, are still struggling to fill out stocks at all housing tiers. Condos, however, are battling a surplus, not brought on by demand, but more by an inability for buyers to find available financing.
“South Florida’s percentage of FHA-approved condo buildings remains significantly below the national average,” said Danielle Blake, MIAMI’s senior vice president of government affairs and housing.
According to statistics released earlier this year from the Florida Department of Business and Professional Regulation and FHA, of the over 8,500 condo buildings in Miami-Dade and Broward Counties, only 29 are approved for FHA loans.
Prices Overshadow Inventory Issues
Inventory issues rank among the most significant problems for Miami, though it hasn’t much hindered the price buyers are willing to pay for any given property. Both median prices for single-family and condos were up in July, a result largely of the continued strong international attention Miami has long received, according to MIAMI’s 2015 Residential President Christopher Zoller.
“A global city with the second-largest financial hub in the country, Miami continues to draw increased demand from international and domestic home buyers,” he said.
Median price for single-family homes increased 8.6 percent from July 2014 to $278,000, and median price for condos jumped 2.6 percent to $195,000. Zoller believes Miami’s current market conditions bode well for further improving and diversifying the local and surrounding markets.
“South Florida’s improving job market and historic low mortgage rates are encouraging more end-users to buy property here.”