Miami property market rises nearly 19% in one year

The property market is soaring in Miami, with the median house price rising almost 19% since this time last year.

In fact, October marked the 23rd consecutive month where Florida’s largest city’s house prices appreciated compared to the year-before figures.

A report from the 30,000-member Miami Association of Realtors says the median sales price for a Miami home in October was $220,000 - up 18.9% compared to $185,000 during the same period last year.

Median condominium prices also showed double-digit appreciation, with the $170,000 median up 17.2% on last year’s $145,000.

“This is a remarkable sign of the vitality and strength of South Florida’s real estate market,” said association chairman Natascha Tello. “It’s a reflection of increased demand from buyers around the world, creating a great opportunity for sellers.”

Average sales prices also had double-digit growth. The average for a family home in October was $421,546 - up 29.9% on the $324,611 figure from last year. Similarly, average condo prices rose 11.8% to $296,568. Last year it was $265,225.

Overall, home and condo sales had a modest single-digit decline in October compared to last year’s figures, but remained strong relative to historical averages and performance.

While traditional sales showed strong gains, short sales greatly declined due primarily to the government shutdown delaying transactions requiring tax return verifications, Tello said. Delays in FHA funding and other government-related factors also contributed to fewer closings in October.

REOs and short sales are forms of distressed sales.

Last month, 1,060 homes were sold in Miami – a decrease of 6.5% on the 1,134 in October 2012. The figure was similar to September’s sales when 1,108 - 48 fewer - homes were sold.

Condo sales were strong in October, with 1,416 sold - a 1.2% decrease on a year-ago; they were 4.7% greater than September’s condo sales figures of 1,352.

Double-digit growth in traditional sales

Market share and number of traditional sales continued to grow in October compared to a year-ago, Tello said. Of the 1,060 homes sold last month, 641 (60.5%) were traditional sales, while REO and short sales accounted for 20.8% and 18.8%.

In October 2012 they accounted for half (49.8%) of sales and REO and short sales were 23.1% and 27%, respectively.

Tello said traditional sales had experienced “significant double-digit growth’’ at 13.5% relative to last year. REO and short sales fell by 16% and 35.2%, respectively.

Condo sales saw similar increases last month. Of the 1,416 sales in Miami in October, 889 (62.8%) were traditional sales - up nearly 8% - compared to the same period in 2012. Then, traditional condo sales were 54.9% of all condo transactions. REO and short sales accounted for 24.1% and 13.1%, respectively, of total sales last month.

“The double-digit growth in traditional real estate sales is a sign of continued strength in Miami’s real estate market,” said the association’s residential president Fernando Martinez.

“Moreover, the significant growth in cash sales shows that Miami is the destination of choice for international buyers, who continue to play a major role in the local market.”

staylor@propertyobserver.com.au