In the last year, the housing market in Miami has begun to make a serious comeback. Part of this has been due to the fact that there is a shortage of inventory. Many homeowners are forgoing placing their homes on the market in the hopes that they will continue to recover more of their pre-housing crisis value. This is essentially forcing current buyers to choose from among the properties that are currently on the market. For example, in 2012, distressed properties held a 40.1% share on the available amount of inventory in Miami. These were the lowest levels of available distressed properties since 2008.
As a direct result of these homeowners’ actions, the number of pending sales in the Miami housing market has increased dramatically. According to a recent report released by the Miami Association of Realtors, the number of pending sales for condos and single family homes has risen 67% over this same time last year. For example, in October of 2011, there were 2,488 pending sales in Miami Dade County. In October of 2012, there were 4,172 listings pending. This number also represents an 18% increase over the number of pending sales in September of 2012. Many are rejoicing in these signs of economic recovery.
Martha Pomares, who served as the chair of the Miami Association of Realtors in 2012, had this to say about the subject:
“The Miami real estate market is poised for another record year, that would surpass the all-time sales record set in 2011. Strong demand persists despite the shortage of housing inventory, and listings are increasingly selling at a more rapid pace, driving in significant price appreciation.”
In a similar sign of economic recovery for the Miami condos as well as single family housing market, the average sale price of condominiums rose 31.7% in November of 2012 versus what they were in November of 2011. This is the 17th straight month of appreciation for townhomes and condos that Miami has seen. In a report released by the MAR, it was noted that the average sale price of single family homes also 15.9% in the same period. This was the 12th straight month of appreciation gains for Miami single family homes.
In fact, these numbers have allowed Miami to set new sales records for 2012, even exceeding the number of sales that were conducted in 2005 before the housing bubble burst. Martha Pomares also noted that, given the shortage of available inventory, it was remarkable that these numbers continued to increase so. For example, in November of 2012 alone, sales activity increased by 23%.
The effects and fallout from the housing crisis are still being felt, and some experts have suggested that it could be 2017 before the market makes a full recovery. However, these signs of growth are encouraging, and it is making buyers feel less fearless when it comes to making purchases. While the future is still somewhat shaky and uncertain, the new growth is an encouraging sign.