Miami Sees Record Demand For Property In 2014
News Posted On: 15 March 2015
The Miami real estate market is one of the most robust in America, and that trend continued in 2014. Renewed consumer confidence and increased demand from both domestic and overseas buyers,according to the latest monthly index report from the Miami Association of Realtors (MAR).
The median sales price for a single family home in Miami reached $246, 140 in the fourth quarter, a 4.7% year-on-year rise. The median sales price for condominiums increased by 8.6% to $190, 000 year on year. The rise means Miami-Dade County has now seen 12 consecutive quarters of growth for both types of housing.
Chrisopher Zoller, residential president at MAR, said: ‘We expect Miami home prices to continue to increase in 2015 but at a more moderate rate. Limited supply and strong demand for single parent family homes is still reflective of a seller’s market.’
Mr Zoller went on to remark that: ‘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.’
In comparison to the fourth quarter of 2013, the average sales price for condominiums in Miami-Dade County rose by 18.5% to $375, 269. The average sales price for a single family home fell slightly, dropping by 2% to $349, 095.
Sales of single family homes set an all-time record in 2014, but they emerged from the fourth quarter well-placed to continue to grow, rising 7.7% to 3, 426 in Q4 2014, while condominium sales actually fell by 3.3% to 3, 981 in the same period.
‘Much of the increase in single-family home sales activity is due to consumer confidence,’ remarks Carlos Gutierrez, MAR’s 2015 president-elect. ‘Many buyers who were staying on the sidelines are now buying. Huge gains in job growth and more solid economic indicators are resulting in more consumers returning to the housing market,’ Mr Gutierrez continued.
At the current pace, Miami has sufficient single family homes for just 5.6 months and sufficient condominiums for 8.4 months. Compared to the fourth quarter of 2013, the supply has actually increased by 19%, a healthy sign when inventory is this low. Inventory for single family homes fell by 0.2%, indicating that any increased stock has simply been absorbed by the burgeoning market. A market that’s balanced between buyers and sellers is considered to mean about six to nine months’ inventory.
In the final quarter of 2014, 55% of closed sales were in cash, compared to 60% the previous year. Since about 90% of foreign buyers pay cash, a falling cash buyer base tends to mean fewer foreign buyers. Miami has a significant contingent of overseas buyers, generating more than twice as many cash transactions as the national average.
Miami’s market is sometimes taken as a weatherbell for the rest of the USA’s housing market, but right now, the picture from across the Atlantic is patchy, marred by falling home ownership, rising unemployment and affordability issues in the traditional homebuyer belts of metro areas’ suburbs. Miami itself is far from troubled, though: it’s booming!
Written by Les Calvert of www.property-abroad.com
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