Following the fallow years of the Great Recession, Florida’s housing market has been on the move upwards since then, with Miami’s real estate market performing particularly well in the December ending quarter of 2014, and improving in almost all statistical metrics.
Statistics released by the Miami Association of Realtors show that the median sales price for single family homes was up 4.7 percent year-over-year to $246,140 in quarter four of 2014. The median sale price for condominiums was up by even more, surging by 8.6 percent to $190,000 between the December 2013 frame and the December 2014 frame. This marks the twelfth straight quarter in which sales prices have ticked up for both single family homes and condominiums.
Average sales prices for condominiums increased 18.5 percent year-over-year to $375,269 in quarter four 2014, though average sales prices for single family homes went down 2 percent to $394,095 over the same period.
“We expect Miami home prices to continue to increase in 2015 but at a more moderate rate. Limited supply and strong demand for single family homes is still reflective of a seller’s market,” said Miami Association of Realtors residential president Christopher Zoller in a statement. “There is also strong demand for both new construction and existing condominiums, so we will continue to see price growth for residential properties in Miami-Dade.”
According to 2015 MAR president-elect Carlos Gutierrez, the main variable influencing the improvement in single-family home sales was consumer confidence. “Many buyers who were staying on the side lines are now buying,” he said, also noting the other factors that came into play. “Huge gains in job growth and more solid economic indicators are resulting in more consumers returning to the housing market.”
Further, home and condominium listings improved by 3 percent in quarter four 2014 as compared to quarter four 2013. New condominium listings were up by 4.2 percent over the same timeframe. Considering the current pace of sales, active listings now represent 5.6 months of inventory for single family homes and 8.4 months for condominiums.
For the former type of property, inventory was down 0.2 percent, but condominium inventory was up by 19.7 percent year-over-year. A property market is considered balanced, or having equilibrium between buyers and sellers, if there is six to nine months of inventory in stock.
Single family home listings stayed on the market in quarter four 2014 for a median timeframe of 45 days, up from 40 days in quarter four 2013. Likewise, condominiums stayed on the market for a median timeframe of 58 days in the December 2014 frame, as to 47 days in the previous December quarter.
About 55 percent of closed sales last quarter were cash-only purchases, down from the 60 percent share in the previous December quarter. All-cash sales, in specific, took up 41.4 percent of single family home sales, and 66.9 percent of condominium sales. The above statistics back up Miami’s reputation as a premium market for international buyers, as approximately 90 percent of all foreign buyers make cash-only purchases.