Florida was one of the hardest-hit states during the housing market crash of the late 2000s, but it does seem that the “Sunshine State” is making a very good recovery. Home sales in Miami were up once again in December, thanks to single-family home sales reaching a record high for annual statistics. Further, median sales prices continued to accelerate, albeit more reasonably in the final month of 2014.
According to the Miami Association of Realtors, single family home sales for the whole of calendar 2014 increased 4.8 percent year-over-year, hitting a record high for the Miami area. Condominium sales, despite decreasing 4.3 percent from 2013’s year-end total, were second highest in the location’s history. Combined sales, however, were down by 0.4 percent, a small drop and one likely driven by unreasonable home price increases in some parts of the year.
And talking about home prices, December saw another year-over-year increase, though homes were still about as affordable as they were in 2004 despite three years of annual increases. Condominium prices were up in December as well, making it 42 out of 43 months this metric has ticked upwards.
“The Miami real estate market again reflected great demand in 2014,” said MAR residential president Christopher Zoeller. “More single family homes were sold in Miami-Dade County than ever in history, while condominium sales marked their second strongest year ever despite competition from new construction supply.”
The median sale price for single family homes in Miami was up by 3.6 percent year-over-year, from $246,180 in December 2013 to $255,000 in December 2014. Average sale price for single family homes, on the other hand, was down from $414,560 in December 2013 to $393,340 in the last month of 2014, a year-over-year decline of 1.7 percent.
The median sale price for condominiums did surge upwards by 9.6 percent, moving from $175,000 the prior December to $195,000 in December 2014. Average sale price for condos was up by a creditable 19.9 percent from $341,687 in December 2013 to $409,707 in December 2014.
Demand appears to be very strong for residential properties in the Miami area, as homes and condominiums sell at close to the asking price. Single family homes were in the market for a median 45 days in December, up 9.8 percent from the year before. Average percent of original list, or asking price was 94.7 percent, a good figure even if it is down 1.7 percent year-over-year.
For condominiums, the median number of days these properties remained on sale was 57 days last December, a 9.6 percent jump from December 2013. Average percent of list price was 93.8 percent, down 3.3 percent from the prior December.
Talking about the variables that influenced Miami’s strong finish in 2014, Zoller attributed this to the high number of foreign buyers in the area, as well as the fact that cash sales, while down from 61.6 percent of the market in 2013 to 57.2 percent in 2014, were still quite common. “As Miami continues to build its image as a leading global city, foreign investment in our real estate is expected to continue to fuel market expansion,” he added.