Miami Home Sales Continue Steady Increase in August

For Immediate Release

September 24, 2009

CONTACT: Lynda Fernandez, 305-468-7040 Office or 305.903.7922 Cell or Teresa King Kinney, 305-468-7010

Note:
RAMB and the Southeast Florida Multiple Listing Service are the sources for statistics reported by the National Association of Realtors and Florida Association of Realtors. From this point, RAMB will be reporting average sales price as well as median sales price.

Miami Home Sales Continue Steady Increase in August

South Florida Top Area for International Buyers Fourth Consecutive Year

Miami, FL - In the Miami metropolitan statistical area (MSA), there was a 22 percent increase of existing single-family home sales in August 2009 compared to August 2008. The sales of existing condominiums in the Miami MSA increased by 17 percent compared to the same period last year. The year-to-date (January to August 2009) average increase of single-family home and condominium sales in the Miami MSA is 62 percent and 40 percent respectively. 

The Miami real estate market has experienced a surge in sales each of the last 13 months. Nationally, sales of existing single-family homes, townhomes, condominiums, and coops in August decreased 2.7 percent.

"International and first time buyers continue to fuel the current uptick in South Florida home sales," said Rick Burch, 2009 Chairman of the Realtor Association of Greater Miami and the Beaches. "Inventory levels are decreasing due to increased number of sales and decreases in price are significantly less than what we had been seeing. Another positive indicator is that agents are again witnessing bidding wars for properties priced competitively."

Median and Average Sales Prices Moving Up

The median sales price for single-family homes reported in Miami-Dade in August 2009 was $194,800, a 29 percent drop from the previous year compared with 40 percent last month. The median sales price for condominiums was $144,700, a 31 percent decrease from August 2008, compared with a 49 percent drop two months ago. Statewide, median sales prices dropped 22 percent to $147,400 for single-family and 32 percent to $109,900 for condominiums. 

The average sales price for residential properties that sold in Miami-Dade County in August was $278,620 for single-family homes and $283,453 for condominiums, decreases of 33.9 percent and 18.7 percent respectively. 

Low Interest Rates not expected to Last

"These are the lowest interest rates we've seen in 40 years. Common statistical evidence would indicate, based upon the money we have pumped into the economy over the last 18 months, interest rates should increase substantially in the next 18 to 24 months," said Maurice "Moe" J. Veissi, 2007-2008 RAMB President. "Given these economic opportunities, this window of low interest opportunity will not last long. Buyers need to act now." 

Days on the Market and Inventory Levels

The number of days a property stays on the market and inventory levels both continue to decrease substantially, other indicators that point to the local market recovery. The inventory of listings in Miami-Dade County according to the Southeast Florida Multiple Listing Service has dropped more than 37 percent in the last 13 months - from 43,095 to 27,255 - and August 2009 brought a 5.9 percent decrease in just one month. 

Nationally, total housing inventory at the end of August fell 10.8 percent from the previous month, and inventory totals were only 16.4 percent lower than a year ago. In August the average number of days a property stayed on the market in Miami-Dade County averaged 112, an 8.4 percent decrease from the previous year. 

Florida, South Florida Top Areas for International Buyers

For the fourth consecutive year, Florida is by far the top state in the U.S. for international real estate buyers, according to the just-released 2009 National Association of Realtors® (NAR) Profile of International Home Buying Activity. The Miami-Fort Lauderdale-Miami Beach area was the most frequently reported location of a home purchased by a foreign buyer in Florida, according the Profile of International Home Buyers in Florida. 

Nationally international buyers continue to account for a significant share of REALTORS business. Four states accounted for the bulk of foreign purchases: Florida, Arizona, California and Texas. Florida ranked first, representing 23 percent of all international buyer purchases. California was second, accounting for only 13 percent. Texas and Arizona account for 11 and 7 percent. 

International Buyers in Florida

With nearly one in four international sales in the U. S., Florida is the top state for international buyers and represented an estimated 30 percent of all Florida existing home purchases in the past twelve months. Also, foreign buyers in Florida were responsible for approximately 32 percent of new and existing home sales. 

Miami and South Florida is the Top Destination for International Buyers

More than one in four foreign buyers (27 percent) purchased a home in the Miami/Ft. Lauderdale area, followed by 11 percent who purchased a home in the Orlando and Sarasota areas. Tampa, Fort Myers and Naples rounded out the top six accounting for approximately 5 percent of purchases by foreign buyers. To view the complete international reports, go to www.miamire.com/international.htm.

Copyright RAMB, Reprinted with permission.