International buyers spark "mini-boom" for miami property
Photo credit: Michael Patrick
Miami property prices and sales are soaring, according to the Miami Association of Realtors, as the Florida city experiences a "mini-boom" driven by overseas investors.
The group's latest report shows that house prices in Miami rose in August for the ninth month in a row. The median sales price of single-family homes is now $195,000, 10.8 percent above last year.
Condo values grew even further, increasing for 14 consecutive months to leave them at $146,500 - 28.4 per cent higher than August 2011.
The rise in price is being driven by the number of transactions, with total property sales in Miami-Dade County surging by 7 per cent over the 12 months.
"Despite the shortage of housing inventory, Miami home sales remain strong and continue to drive significant price appreciation," said 2012 Chairman of the Board of the MIAMI Association of REALTORS Martha Pomares. "There is evident demand for Miami properties, particularly from foreign buyers and investors who recognize Miami's desirability and profitability. Miami remains the top market for foreign buyers in the nation, and local international activity continues to grow."
Indeed, 64 percent of total closed sales in August were all-cash sales, compared to 62 percent in August 2011 - and 90 per cent of foreign buyers use cash for their transactions.
Statewide median sales prices in August increased 5.8 percent to $147,000 for single-family homes and 13.2 percent to $102,980 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $187,400 in August, a 9.5 percent increase from August 2011, according to the National Association of Realtors (NAR).
Across Florida, existing single-family homes totalled 18,669 in August 2012, up 10.8 percent compared to a year ago. Statewide condominium sales totaled 8,767, up 5.7 percent from those sold in August 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 7.8 percent from July and were 9.3 percent higher than they were in August 2011, according NAR.
"Miami is experiencing a mini-boom fueled mostly by demand from international buyers but also by population growth resulting from migration from other states, baby boomers, and local consumers," said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. "Miami's firm position as a major global city is expected to continue to draw demand long into the future, as businesses, residents, visitors and tourists, investors, and vacation and second homebuyers take advantage of all that our vibrant and unique city has to offer."
Over the last year, the inventory of residential listings in Miami-Dade County has dropped 26 percent from 15,405 to 11,431. Compared to the previous month, the total inventory of homes decreased 0.2 percent. Currently, there are 4.2 months of supply in Miami-Dade. Total housing inventory nationally increased 2.9 percent at the end of August and was 18.2 percent below year-ago levels, which represents an 8.2-month supply at the current sales pace.
Strong demand for bank-owned (REO) properties and improved processing of short sales continues to yield absorption of distressed listings and to contribute to price appreciation. In August, 45.8 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 56 percent in August 2011 and 47 percent the previous month. Nationally, distressed sales accounted for 22 percent of August sales.