By Sunny Isles Real Estate Expert on January 31st, 2013
In yet another not such a small sign that the Miami real estate market is on the road to recovery, the average sale price of Miami condos for sale and townhomes rose approximately 30.1% in the fourth quarter this year. The is the first time since 2006 that sales activities have reached this level of interest, according to a recently released news report.
Many homeowners are biding their time before placing their residences on the market, hoping that their homes will recover more of their pre-crisis value before attempting to sell them. Still, the current news comes as a welcome relief. The single-family sector in Miami was the one that showed the most growth in the last quarter. Compared to this time last year, there was a 22.8% increase in sales activity, with the total number of homes sold being 2,028.
Likewise, condo sales activity rose roughly 9%, with the total number of sales amounting to 3,178. According to the same report, the last 3 months of 2012 showed a total number of 5,206 real estate transactions being made.
The buyers and prospects for the housing market in Miami are on the increase once again, particularly since the issues that surrounded the fiscal cliff have been resolved. The prices for Miami real estate for sale properties are steadily increasing, and the increase has been dramatic over the last year. The amount of inventory is decreasing, the days on the market have decreased, and the average prices have increased. So all these factors attribute to a health index of the real estate market in Miami.
Many recent reports have examined the behaviors of coastal communities in and around Miami, from the northern town of Surfside to Pinecrest in the south. Sales in the luxury market comprised approximately the upper 10% of sales across the board. In these coastal communities, the average sale price for a condominium hovered at around $1.18 million. This number represents a 32.6% increase in value compared to the same time last year. As aforementioned, the average, median value for single-family homes increased 30.1%, and the average sales price for a single family home was $1.4 million.
What may be more indicative of the housing market’s recovery is the fact that the market share of distressed properties (of all available inventory) decreased significantly. It fell to roughly 40.2%, which is the smallest share it has held in over 3 years. In terms of the distressed market alone, there was a 12.8% increase in the sale of single-family homes and a 3.4% rise in the sales of distressed condos.
The steps are small, but the signs of improvement are there, and within the next 5 years, it is projected that most homes and condominiums in South Florida will enjoy levels of value that on par with what they had before the economic bubble burst.