Property prices are surging in the Miami and are serving as a catalyst for a wider recovery in the state’s struggling housing market, according to the Miami Association of Realtors. The median sales prices of condos in Miami-Dade County are up 40.4% on the yea and prices for single-family homes have risen 19% in the same period. This means an increase in median sales for the rest of the state and has helped pull prices up to an average of $95,000 for condos and $135,000 for single-family homes, a 15.9% and 7.2% increase, respectively. Despite rising prices, sales have tapered off in Miami and the rest of the state, and the majority of sales are for distressed properties, whether short sales or foreclosed homes. For more on this continue reading the following article from Property Wire.
For the third consecutive month, Miami home prices posted strong gains in February as the median sales price of condominiums in the Miami-Dade County surged 40.4% to $131,950 in compared to a year earlier.
The median sales price of single family homes rose 19% to $175,000, according to data from the Miami Association of Realtors.
‘Miami home prices have rebounded sooner and stronger than predicted, which is a very encouraging sign for the Miami real estate market,; said Martha Pomares, chairman of the Board of the Miami Association of Realtors.
‘Months supply of inventory has dipped below five months, as housing inventory continues to dwindle. Limited supply should further strengthen home prices,’ she added.
Statewide median sales prices in February increased 15.9% to $95,000 for condominiums and 7.2% to $135,000 for single family homes, 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 $156,000 in February, a 0.3% increase from February 2011.
In February, the average sales price for single-family homes in Miami-Dade County increased 15.4% from $265,440 in 2011 to $306,391 in 2012. The average sales prices for condominiums jumped 26.3%, from $214,012 to $270,300.
The sales of existing single family homes in Miami-Dade increased 2% in February, from 746 to 760, compared to February 2011. Sales of condominiums dropped 12% from 1,230 to 1,086, compared to record sales levels in February 2011.
Statewide sales of existing single family homes totalled 14,270 in February 2012, down 4.8% compared to a year ago. Statewide condominium sales totalled 7,545, down 16% from those sold in February 2011.
Nationally, sales of existing single family homes, town homes, condominiums, and co-ops decreased 0.9% from January but were 8.8% higher than they were in February 2011, according to the National Association of Realtors (NAR).
‘Rising prices have resulted from an all time Miami home sales record set in 2011. Miami not only attracts the highest percentage of international buyers and investors, but also has become the focal point of emerging markets, as worldwide buyers and investors recognize the benefits of investing in Miami,’ said residential president Patricia Delinois.
The association also said that heightened demand for bank owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and this has contributed to price appreciation.
In February, 54% of all closed residential sales in Miami-Dade County were distressed, including REOs and short sales, compared to 69% in February 2011 and 56% the previous month. Contrary to a year ago, there are now more short sales being transacted than REOs.
In Miami-Dade County, 65% of total closed sales in February were all cash sales, compared to 66% in January and 67% a year earlier. Cash sales accounted for 46% of single family and 79% of condominium closings.
Nearly 90% of international buyers in Florida purchase properties all cash. Nationally, all cash sales were 33% of transactions in February, reflecting the stronger presence of international buyers in the Miami real estate market.
This article was republished with permission from Property Wire.