Overseas cash buyers continue to boost Miami real estate market

Miami home prices rose again in September, marking 10 consecutive months of appreciation boosted by cash buyers from abroad, the latest figures from the Miami Association of Realtors show.

The median sales price of Miami-Dade condominiums, which has increased each of the last 15 months, rose 36.2% to $150,000 compared to a year earlier. The median sales price of single family homes rose 8.6% to $190,000.

‘The Miami real estate market continues to strengthen despite the shortage of housing inventory,’ said chairman of the board of the Miami Association of Realtors Martha Pomares. 

‘We’ve seen nearly an entire year of significant monthly price increases, which makes now a great time to sell a home. Miami properties sell very quickly and draw multiple offers when priced right,’ she explained.

In September the average sales price for condominiums in Miami-Dade County increased 30.2% to $277,774.  The average sales price for single family homes decreased 6.1% to $315,521.

Statewide median sales prices in September increased 7.4% to $145,000 for single family homes and 18.8% to $105,376 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 $183,900 in September, an 11.3% increase from September 2011, according to the National Association of Realtors (NAR).

Total residential sales in Miami-Dade County decreased a negligible 3.4% compared to a year earlier when the local market experienced record sales levels. The sales of existing condominiums in Miami-Dade decreased 6.7% from 1,395 to 1,302. Sales of single family homes increased 1.6% from 903 to 917, year on year.

Statewide sales of existing single-family homes totalled 15,643 in September, up 2% compared to a year ago. Statewide condominium sales totalled 7,329, down 2.9% from September 2011.

Nationally, sales of existing single family homes, town homes, condominiums, and co-ops fell 1.7% from August but were 11% higher than they were in September 2011, according NAR.

International buyers continue to play a pivotal role in strengthening the Miami real estate market and the local economy, according to Patricia Delinois, residential president of the Miami Association of Realtors.

‘Miami’s market share of international purchases in Florida continues to increase, reflecting its strong position as the top market for foreign buyers and investors and benefiting our businesses and our residents. Miami now accounts for 31% of all international sales in the entire State of Florida, up more than 10% compared to NAR’s 2011 Florida study,’ she explained.

Over the last year, the inventory of residential listings in Miami-Dade County has dropped 24% from 15,264 to 11,595. Compared to the previous month, the total inventory of homes decreased 1.4%. Currently, there are 4.3 months of supply in Miami-Dade.

Total housing inventory nationally decreased 3.3% at the end of September and was 20% below year ago levels, representing a 5.9 month supply at the current sales pace.

Agents also report that properties are selling much more rapidly in the current market than they did a year ago. The current median days on the market is only 43 for both single-family homes and condominiums, compared with historic averages of 90 to 120 days on the market. These are respectively 14 and 24.6% decreases year on year. Nationally, the median time on the market was 70 days.

There is also 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 September, 47.4% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 59% in September 2011 and 45.8% the previous month. Nationally, distressed sales accounted for 24% of September sales, up from 22% in August and down from 30% in September 2011.

In Miami-Dade County, some 62.4% of total closed sales in September were all cash sales, compared to 62% in September 2011 and 64% the previous month. Cash sales accounted for 43% of single family and 76% of condominium closings.

Nearly 90% of foreign buyers in Florida purchase properties all cash. This reflects the much stronger presence of international buyers in the Miami real estate market. By comparison all cash sales nationally accounted for 28% of transactions in September, up from 27% the previous month and down from 30% in September 2011.