Miami Home Sales Strengthen in December and Year-End

The sales of existing single-family homes in the Miami Metropolitan Statistical Area (MSA) rose 18 percent in December, from 623 to 734, compared to December 2009 and 70 percent compared to December 2008, according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS). Sales of condominiums increased 29 percent, from 766 to 985, compared to December 2009 and 116 percent compared to December 2008.

Statewide sales increased four percent to 6,673 for condominiums and four percent for single-family homes to 15,550. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops rose 12.3 percent from November but were 2.9 percent below December 2009, according to the National Association of Realtors (NAR).

"Sales figures for December and for all of 2010 are very encouraging," said Jack H. Levine, 2010 Chairman of the Board of the MIAMI Association of REALTORS. "Increasing sales denote the demand that exists for local properties and show significant strengthening from where we were two years ago."

Year End 2010
Total closed sales of condominiums spiked 43 percent, from 6,854 in 2009 to 9,778 in 2010. Compared to 2008, condominium sales increased 114 percent last year. Total single-family home sales increased nine percent from 6,685 in 2009 to 7,308 in 2010 and 67 percent compared to 2008. Short sales and foreclosures continue to have an impact on median and average sales prices for both single-family homes and condominiums especially in some areas of the county.

Median and Average Sales Price
In the Miami MSA, the year-end median sales price dropped a negligible three percent for single-family homes and 18 percent for condominiums when comparing 2010 to 2009. Statewide the year-end median sales price dropped four percent for single-family homes and 15 percent for condominiums. The national median existing-home price for all housing types was $168,800 in December, a one percent drop from December 2009.

The median sales price of single-family homes in December decreased 15 percent to $173,600 from a year earlier.The median sales price of condominiums dropped 33 percent to $99,100. Statewide median sales prices decreased 17 percent to $88,100 for condominiums and five percent to $133,100 for single-family homes.

The average sales price for total single-family homes in Miami-Dade County increased five percent, from $286,644 in 2009 to $301,020 in 2010. The average sales prices for condominiums dropped eight percent, from $241,226 to 221,330.

"While we have seen the Miami real estate market improve overall, many local areas and neighborhoods are surging," said 2011 MIAMI Association of REALTORS Residential President Ralph E. De Martino. "Sales prices and volume are increasing in various cities throughout Miami-Dade County."

Inventory Levels Continue to Drop
The inventory of residential listings in Miami-Dade County dropped 7.6 percent from 25,021 to 23,116 since January 2010, according to the SEFMLS. Compared to last month, the total inventory of homes dropped 4.8 percent. Total housing inventory nationally fell 4.2 percent at the end of December.

About the MIAMI Association of REALTORS
The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating its 90th year of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 25,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 60 international organizations worldwide. MIAMI's official website is www.miamire.com.

Boom to Bust! Great Deals on Miami Area Real Estate

Miami was one of the first real estate boom areas to start to bust, but that downturn is also bringing good news to potential investors in South Florida real estate. Prices in all areas of Miami-Dade and Broward counties have significantly dropped since the top of the real estate boom in 2006, through the second quarter of 2009.

At the same time that prices have dropped, foreign investments have helped to create some market stability not seen in other areas of the US. "While many factors have contributed to the decline in home sales in Florida, an increase in foreign home buyers has helped to decrease the amount of damage. Foreign buyers recognize U.S. real estate as a desirable, profitable and secure investment. Also, the weak U.S. dollar has made U.S., and particularly Florida, real estate investments even more attractive," according to Pensacola realtor Howard Liggett.

Liggett said that the National Association of Realtors, in cooperation with the Florida Association of Realtors, conducted a survey in August, 2008, of Florida Realtors, asking about their experiences in working with international clients. "More than one quarter of the Realtors had one property sale to an international client, while 15% reported two transactions within the past 12 months.... One-third of Florida Realtor respondents also noted an increasing share of their business coming from international buyers over the past two years."

The cliche "every problem is an opportunity" has never been more true! Will these prices go lower? Most likely not, based on the increasing pace of sales and declining inventory, coupled with continued local job growth as reported in local media. Today is a great time to buy your dream home in Florida!