Miami Sees New Sales Record Alongside Double-Digit Price Gains By The End Of 2012

A new record has been set once again for Miami with home sales which show a
significant increase in both single-family homes and condominiums. With prices
going up by double-digits as a result of continued activity from international buyers in
2012, Miami is definitely looking good in 2013.

By the end of 2012, the year-end sales for single-family homes went up by 7.9 percent
while condominium sales went up by 1.2 percent compared to 2011.

Expectations are still being well-exceeded with more anticipated price appreciation in
the next couple of months due to the shrinking inventory supply within the region. As
many expected such increases to take place, no one really thought the increase would
come as soon as it did or as strong as it turned out to be.

All in all, sales within Miami went up by 12.5 percent in December 2012 compared to
December 2011. Existing single-family home sales went up by 15.3 percent while the
sales on existing condominiums went up by 9.8 percent.

As far as the prices are concerned, the region has seen on a roll with 13 consecutive
months of appreciation on single-family homes as well as condominiums.

The median sales price for condominiums is currently $163,000 which marks an
increase of 25.4 percent compared to the previous year while the median sales price
for single-family homes is currently $214,060 which marks an increase of 18.9
percent compared to the previous year.

By the end of the year, median sales prices went up by 11 percent to $188,000 for
single-family homes and up by 34 percent to $147,000 for Miami condominiums.

There is no doubt that the Miami real estate market will keep becoming stronger in
2013 since there are clear indicators of a consistently high demand across the entire
region.
Not only is Miami a great location for international buyers and investors who would
like to purchase vacation homes and the like, the region is also a very attractive area
because of its great potential in various other industries such as business, finance, the
arts, and even entertainment — all of which have been adding to the existing demand
which is clearly seen in the fact that even the rental market is growing and the supply
on the market is still very low.

As far as the actual inventory supply is concerned, 2012 ended with 24 percent less
inventory than it did in 2011. The inventory supply for single-family homes fell by 28
percent while the inventory supply for condominiums fell by 21 percent.

As of now, there are only 5.2 months of supply remaining for single-family homes
and 5.7 months of supply remaining for condominiums which indicates a drop of 33
percent for single-family homes and 22 percent for condominiums.

 

Selda KIRKAN