Miami real estate capped off a record-setting 2012 with another strong month of home sales and price increases in December.

By Peter Ricci

Miami home sales set new records in 2012, improving upon the record-setting 2011 and even the height of the housing boom in 2005, according to the year-end analysis of the Miami Association of Realtors (MAR).

MAR found that in 2012, there were 11,463 home sales in Miami-Dade, a 7.9 percent increase over 2011, while condo sales for the year were 16,383, a 1.2 percent increase.

Miami Home Sales in 2012 – a Record-Setting Year

Other information in MAR’s report included:

• For the month of December, residential sales in Miami-Dade County rose 12.5 percent year-over-year, with single-family sales climbing 16.4 percent and condo sales jumping 9.8 percent.
• Miami home prices for both single-family homes and condominium rose for the 13th consecutive month, with condo sales rising 3.2 percent month-to-month and an incredible 25.4 percent year-over-year. For all of 2012, median sales price increase 11 percent for single-family homes and 34 percent for condos over 2011.
• Housing inventory continued to drop in December, falling 24 percent from December 2011; single-family home inventory was down 28 percent, and condo inventory down 21 percent, representing 5.2 and 5.7-month supplies.
• On a good note, distressed sales made up a smaller share of overall home sales, accounting for 41.1 percent of all sales; that’s down from 47.4 percent in November and 54.4 percent from a year ago.
• All-cash sales, though, continued their dominance, making up 65 percent of all closed sales in December; that’s up from 63 percent in November, and far above the 29 percent national average.

Natascha Tello – Miami Real Estate Exceeding Expectation

December, said Natascha Tello, MAR’s chairman of the board, continued the Miami real estate market’s pattern of excellent.

“The Miami real estate market continues to exceed expectations and generate optimism,” Tello said. “While we expected the surge in demand to drive price appreciation, we did not expect prices to increase as soon and as strong as they did. Further, given the housing shortage experienced last year, we were not expecting to set another sales record.”

And Fernando Martinez, MAR’s 2013 residential president, said he expects Miami real estate to strengthen further in 2013.

“In addition to being a top market for foreign and vacation homebuyers and investors, Miami continues to attract global attention on many fronts, including business, banking, fine arts and entertainment,” Martinez said. “Such activities generate demand for housing, as evidenced by our strong rental market and lack of inventory available for sale.”