Most recent Miami real estate report
indicates that single family and condominium sales in Miami jumped 49 percent in the second quarter, with a total of 6,768 sales, according to the Miami Association of Realtors. “Miami sales have increased consistently for nearly three years,” said Jack Levine, chairman of the board of the Miami Association of Realtors. “Residential sales exceeded last year’s levels, which were boosted by the homebuyer tax credit. International buyers and investors continue to fuel the Miami real estate market unlike any other in the U.S.” The median sales price in Miami-Dade county fell to $178,800 in the first quarter, according to the report.
Miami Real Estate Prices are up 12.5% on Non-Distressed Sales
A review of the Miami-Dade County home prices in their entirety can be somewhat misleading. The County, like the remainder of the nation, has been facing a higher percentage of foreclosures than in prior years due to the downturn in the economy. While these home sales certainly contribute to the region’s bottom line sales figures, they are not representative of the overall health of the market.
When distressed properties are pulled out of the equation, home prices within Miami-Dade County are actually up 12.5% year-to-date, based upon a recent report published by CoreLogic, a real estate research firm. This significant growth rate makes the County one of the fastest to rebound in the nation.
What this suggests is that among typical home buyers and sellers, the market is strong. While this is certainly positive news for current homeowners in the area looking to preserve the value of their current properties, it is important to step back to review the entire picture.
To capture this more complete view of the real estate market in the area, all sales should be accounted for. When the foreclosure and other distressed sales are added back into the equation, the growth rate shrinks to just above 0.9 percent year-to-date.
What do these figures tell us about the overall area’s real estate market? Price declines have been heavily concentrated within the distressed market, while the remainder of the market has managed to maintain pricing levels, and in some cases, raised pricing levels. For those buyers seeking non-distressed properties to purchase, they will find a shrinking inventory and rapidly rising prices, according to Sunny Realty. Naturally, as supply decreases, demand increases which will be the primary driver of real estate prices.
Based upon a recent report from the Miami Association of Realtors, inventory in the Miami-Dade area is currently sitting near 30,000, down from over 45,000 from this time last year.
According to Lana Bell of Sunny Realty, “For buyers seeking luxury properties listed in a non-distressed state; now is the time to act.”
While a variety of non-distressed properties are currently available throughout the county, there are still a number of distressed properties listed, and more to come, appealing to investors domestically and internationally.
As we head into the third and fourth quarters of 2011, there still remains some uncertainty about the direction of the Miami-Dade real estate market due to the volatile macro-economic factors that affect such things as the local job market. Despite this uncertainty, based upon the data pointing to positive trends in the market, professionals like Lana Bell of Sunny Realty remain ‘bullish’ about the state of Miami-Dad real estate.