After two months of significant growth, home sales in Miami fell by 9.2% in November but prices are still rising, but at a slower pace than before.
Miami has been one area in the United States that has been leading the real estate recovery but some properties are now seeing demand fall, according to data from the Miami Association of Realtors.
While sales of single family homes decreased a negligible 1% compared to a year ago, condo sales were down 15.5% while combined sales were down 9.2%.
‘We are experiencing more moderate growth, which reflects a healthier market and more balance between buyers and sellers, in Miami sales remain strong compared to the record sales activity of the previous three years,’ said Liza Mendez, chairman of the board of the Miami Association of Realtors.
Single family home prices, which again increased in November year on year, remain at affordable 2004 levels despite three years of consistent year on year increases. Condo prices also increased in November, marking 41 months of growth in the last 42 months.
The median sale price for single family homes increased 5.4% to $245,000 from $232,000 in November 2013. The average sale price for single family homes increased 8% from $366,309 in November 2013 to $395,786 last month.
Compared to November 2013, the median sale price for condominiums also increased 5.4% to $189,777 from $180,000 a year prior. The average sale price for condominiums increased 11.9% to $311,323 from $348,290 in November 2013.
The data also shows that Miami properties continue to sell rapidly and at nearly asking price, reflecting strong demand. The median number of days on the market for single family homes sold in November was just 47 days, an increase of 20.5% from November 2013. The average percent of original list price received was 93.9%, down a negligible 2.3% from a year earlier.
The median number of days on the market for condominiums sold in November was 57 days, an increase of 29.5% compared to the same period in 2013. The average sales price was 93.9% of the asking price, a decrease of 2.6%.
Cash sales in Miami continue to decline and the association said this is because more financing becomes available. Still, access to mortgage loans for condominium buyers remains limited, impeding further market strengthening.
In Miami-Dade County, 53.3% of total closed sales in November were all cash transactions, compared to 61.7% in November 2013. Cash sales in Miami are still double the national figure of 25%.
All cash sales accounted for 41.7% of single family home and 63.8% of condominium closings, compared to a year earlier when cash sales were 46.7% of single family home sales and 73.2% of condominium sales.
Since nearly 90% of foreign buyers in Florida purchase properties all cash, this continues to reflect the much stronger presence of international buyers in the Miami real estate market.
While traditional sales continue to increase, distressed property transactions in November again declined in Miami-Dade due to fewer short sales. In November, only 34.7% of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 35.1% in November 2013.
Short sales and REOs accounted for 8.7% and 26%, respectively, of total Miami sales in November. Sales of REOs increased 9.2% while that of short sales declined by 41.4%.
The monthly report also points out that after three years of record sales activity that resulted in an inventory shortage, seller confidence continues to result in more properties being listed for sale in Miami. But new listings are now increasing by narrower margins. Supply and demand for single family home continues to favour sellers, while that of condos reflects a balanced market between buyers and sellers.
‘While we have seen much needed increased inventory over the last couple of years, the number of existing properties being listed for sale is declining, particularly for single-family homes,’ said Francisco Angulo, residential president of the Miami Association of Realtors.
‘New and pre-construction inventory is providing additional supply for condos, inventory of single family homes remains limited,’ he added.
Active listings at the end of November increased 13.7% but remain 60% below levels in 2008 when sales bottomed. Inventory of single family homes increased 8.3% condo inventory increased 16.9%.
At the current sales pace there is a 5.7 month supply of single family homes, an increase of 3.3% from 5.5 months in November 2013, and an 8.4 month supply of condominiums, up from 6.9 months in November 2013, an increase of 21.7%. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
New listings of single family homes decreased, for the first time in two years, down 1.7% but new condominium listings were the same as in November 2013.
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